A Project Has the Activity Duration and Cost Information Indicated

question 38

Multiple Choice

A project has the activity duration and cost information indicated in the table where all times are in weeks.What is the lowest total cost for completing this project in 33 weeks? $$\begin{array} { | l | l | l | l | l | l | } \hline \text { Activity } & \begin{array} { l } \text { Normal } \\\text { time }\end{array} & \begin{array} { l } \text { Crash } \\\text { time }\end{array} & \begin{array} { l } \text { Normal } \\\text { Cost }\end{array} & \begin{array} { l } \text { Crash } \\\text { Cost }\end{array} & \text { Predecessor } \\\hline \mathrm { A } & 8 & 5 & \$ 1,000 & 2,000 & \\\hline \mathrm { B } & 6 & 4 & 1,500 & 2,000 & \text { A } \\\hline \mathrm { C } & 8 & 5 & 1,800 & 2,300 & \mathrm {~A} \\\hline \mathrm { D } & 12 & 9 & 1,000 & 1,800 & \mathrm {~B} \\\hline \mathrm { E } & 14 & 11 & 950 & 1,450 & \mathrm {~B} \\\hline \mathrm { F } & 9 & 7 & 1,500 & 1,900 & \text { C, D } \\\hline \mathrm { G } & 7 & 5 & 2,300 & 2,800 & \text { E, F } \\\hline\end{array}$$

• A) $11,250
• B) $11,500
• C) $12,250
• D) $12,500

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Definitions:

Monopsonist

A market condition where there is only one buyer facing many sellers, giving the buyer significant control over prices.

Labor Supply Curve

A graphical representation that shows the relationship between the wage rate and the quantity of labor that workers are willing to supply.

Marginal Expenditure

The extra expense associated with making an additional unit of a product or service.

Product Market

The marketplace in which final goods or services are offered to consumers, businesses, and the public.