Department 3 Has 2500 Hours

question 40

Multiple Choice

Department 3 has 2500 hours.Transfers are allowed to departments 2 and 4,and from departments 1 and 2.If A_i measures the labor hours allocated to department i and T_ij the hours transferred from department i to department j,then ​

• A)T₁₃ + T₂₃ − T₃₂ − T₃₄ − A₃ = 2500.
• B)T₃₁ + T₃₂ − T₂₃ − T₄₃ + A₃ = 2500.
• C)A₃ + T₁₃ + T₂₃ − T₃₂ − T₃₄ = 2500.
• D)A₃ − T₁₃ − T₂₃ + T₃₂ + T₃₄ = 2500.

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Definitions:

MR

Stands for Marginal Revenue, which is the additional income received from selling one more unit of a product or service.

Short Run

A time period in economics during which at least one input is fixed, limiting the ability of the economy or firm to adjust to changes in demand or supply.

AVC

Average Variable Cost, the total variable costs (labor, materials, etc.) divided by the quantity of output produced, illustrating how variable costs change with the level of output.

Shutdown Point

The point where a firm's revenue is not enough to cover its variable costs, leading to a decision to cease production temporarily.