A Firm Produces 500 Units Per Day Using Five Workers

question 72

Multiple Choice

A firm produces 500 units per day using five workers on a five-hour shift. On average, 15% of the units produced are defective and must be scrapped. What is the labor productivity for non-defective units?

• A) 17 units/hour
• B) 3 units/hour
• C) 20 units/hour
• D) 85 units/hour
• E) 15 units/hour

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Definitions:

Declaratory Judgment Action

A legal procedure wherein the court determines the rights of parties without ordering any specific action or awarding damages.

Subrogation Action

A legal action where an insurer seeks to recover the amount of an insurance claim paid to the insured from the party responsible for causing the loss.

Indemnity Action

A legal action seeking compensation for damages or loss from another party as recompense for harm suffered.

Duty To Defend

The duty to defend entails a legal obligation, often found in insurance policies, where the insurer must provide legal defense to the insured party in case of a lawsuit that falls under the policy coverage.