Table 13-3
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-As Bubba's Bubble Gum Company Adds Workers

question 257

Multiple Choice

Table 13-3
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$$\begin{array} { | c | c | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of workers) }\end{array} & \begin{array} { c } \text { Output } \\\text { (Units) }\end{array} & \begin{array} { c } \text { Fixed Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Variable Cost } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Total Cost } \\\text { (Dollars) }\end{array} \\\hline 0 & 0 & 50 & 0 & 50 \\\hline 1 & 90 & 50 & 20 & 70 \\\hline 2 & 170 & 50 & 40 & 90 \\\hline 3 & 230 & 50 & 60 & 110 \\\hline 4 & 240 & 50 & 80 & 130 \\\hline\end{array}$$ ​
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-As Bubba's Bubble Gum Company adds workers while using the same amount of machinery, some workers may be underutilized because they have little work to do while waiting in line to use the machinery. When this occurs, Bubba's Bubble Gum Company encounters

• A)economies of scale.
• B)diseconomies of scale.
• C)increasing marginal product.
• D)diminishing marginal product.

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Definitions:

Culture

Culture consists of the beliefs, behaviors, objects, and other characteristics common to the members of a particular group or society, shaping their worldview and lifestyle.

Experience

The knowledge or skill acquired by a period of practical involvement in an activity or exposure to events.

Norms of Development

Standard or typical patterns of physical, emotional, or intellectual growth and development.

Labor Force

The total number of people, including both the employed and the unemployed, who are actively seeking and available for work.