Given the Following Data About an Assembly Line and the Knowledge

question 115

Multiple Choice

Given the following data about an assembly line and the knowledge that we are trying to attain an output rate of 40 units per hour,what is the theoretical minimum number of stations?

• A)four or fewer stations
• B)five stations
• C)six stations
• D)seven or more stations

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Definitions:

Labor

The human effort, whether physical or mental, that is used in the production of goods and services.

Law of Diminishing Returns

An economic principle stating that adding more of one factor of production, while keeping others constant, will at some point yield lower per-unit returns.

Marginal Product

The additional output produced as a result of utilizing one more unit of input, holding all other inputs constant.

Total Product

The total quantity of output produced by a firm or an economy within a certain period, often considered in relation to inputs used.