Firm a Operates 10 Hours Each Day, Producing 100 Parts/hour

question 14

Multiple Choice

Firm A operates 10 hours each day, producing 100 parts/hour. If productivity were increased 20%, how many hours would the plant have to work to produce 1000 parts?

• A) less than 2 hours
• B) between 9 and 10 hours
• C) between 2 and 6 hours
• D) between 6 and 8 hours
• E) between 8 and 9 hours

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Definitions:

Resource Market

A market in which households sell and firms buy resources or the services of resources.

Financial Capital

Refers to the funds provided by lenders (and investors) to businesses to purchase real capital equipment for producing goods/services.

Raw Materials

Basic materials that are processed or refined to create goods and products in various industries.