Although the Fire Marshal Had Declared the Capacity of the Classroom

question 4

Multiple Choice

Although the fire marshal had declared the capacity of the classroom at 55 students,the introduction to operations management class was so popular,the average attendance was 75 students,literally standing room only.Squeals of excitement and the occasional burning of an overturned car accompanied the successful solution of problems such as this: What is the utilization of the operations management professor?

• A)100%
• B)136%
• C)75
• D)55

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Definitions:

Utility Function

A mathematical representation of how different combinations of goods or services can result in varying levels of satisfaction or utility to a consumer.

Consumer's Surplus

The difference between what consumers are willing to pay for a good or service and what they actually pay, representing the benefit consumers receive from the purchase.

Earplugs

Small devices inserted into the ear canal to protect the ears from loud noises, water, or foreign bodies.

Consumer's Surplus

The difference between the total amount that consumers are willing and able to pay for a good or service versus the total amount they actually pay.