Refer to the Information Provided in Figure 14

question 29

Multiple Choice

Refer to the information provided in Figure 14.7 below to answer the questions that follow. Figure 14.7
-Refer to Figure 14.7. Six firms that produce chewing gum form a cartel. The cartel faces the market demand curve given by D. To maximize profits, the cartel should produce ________ packs of chewing gum and the price should be ________.

• A) 12,000; $.25
• B) 12,000; $.40
• C) 14,000; $.30
• D) 16,000; $.35

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Definitions:

Output Rate

The quantity of goods or services produced in a given time period, often used as a measure of productivity or efficiency.

Stations Needed

The number of locations or workstations required to complete a process or service, often determined by layout planning to optimize efficiency.

Takt Time

The rate at which a product must be completed in order to meet customer demand, calculated as the available production time divided by the customer's demand rate.

Operation Time

The total time required to complete a particular operation, including both working and waiting times.