Module 2 Part 1 Video Quiz
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School
South Texas College *
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Course
2301
Subject
Industrial Engineering
Date
Dec 6, 2023
Type
docx
Pages
5
Uploaded by MajorSalmon1570
"We need to figure out the right number of engineers to hire to get the most productivity possible, but
we have to stay within our hiring budget." The objective function to be optimized (minimized or
maximized) is
a.
employees.
b.
productivity.
c.
total salary.
d.
cost.
"We need to figure out the right number of engineers to hire to get the most productivity possible, but
we have to stay within our hiring budget." The activity or choice variable is
a.
hiring budget.
b.
total salary.
c.
engineer output.
d.
number of engineers.
"We need to figure out the right number of engineers to hire to get the most productivity possible, but
we have to stay within our hiring budget." A constraint is
a.
hiring budget.
b.
engineer productivity.
c.
output per engineer.
d.
product price.
The optimal decision will
a.
maximize the distance between total benefit and total cost if TB>TC
b.
maximize the total benefit.
c.
minimize the total cost.
When net benefit is zero,
a.
total benefit equals total cost.
b.
total benefit is maximized.
c.
total cost is maximized.
When choosing to hire another engineer, the marginal benefit is
a.
the total output that can be produced among all the engineers now hired.
b.
the extra salary that must be paid to the new employee.
c.
the additional output (and revenue from that output) that the engineer can produce.
d.
the additional office expenses incurred in having another employee.
When choosing to hire another engineer, the marginal cost is
a.
the value of the additional output produced by the engineer.
b.
the additional salary that must be paid to the new engineer.
c.
the total amount of salaries that must be paid out to all engineers.
d.
the change in the price of the product that results from the hire.
If total benefit is positive, then marginal benefit
a.
is maximized.
b.
may be positive, zero, or negative.
c.
is negative.
d.
is positive.
The optimal decision will occur where
a)
MB=MC
b)
TB=TC
c)
MB−MC is maximized.
d)
TB=MB
Which of the following would be considered a sunk cost in the decision of a company to purchase a new
piece of capital equipment?
a.
the boost in revenue that is expected upon installation and utilization of the new machinery.
b.
the money spent to train employees on the use of an old machine which this new machine is
replacing.
c.
the purchase price of the new machinery.
d.
the downtime the company can expect during the installation process of the new machinery.
Your company uses two types of occupations. Occupation A pays $40,000 and occupation B pays
$50,000. The hiring of an additional A will add $1,000 to total revenue, while one more B will add $1,500
to total revenue. The company should
a.
Hire one more B since the additional revenue per dollar is better than A's additional revenue per
dollar.
Reasoning= Occupation
A $1000/$40000=.025 Occupation B $1500/$50,000=.03
b.
Hire one more A since A's salary is cheaper.
c.
Hire one more B since they produce $500 more in revenue.
To make an optimal decision, you should choose the level of activity A
such that, at A
∗
, the slope of _______ is equal to zero.
a)
TB(total benefit)
b)
NB (net benefit)
c)
TC (total cost)
If you find that, at the current activity level, the slope of the TB line = 3 and the slope of the TC line = 4,
you should ______ the level of the activity to arrive at the optimum.
a)
not change
b)
decrease
c)
increase
Let Z=1.7W
3
Then dZ=/dW
a)
1.3W
2
b)
0.567W
5.1
c)
5.1W
2
Reasoning
d)
5.1W
You have a demand function like this: Q=100+15P+0.004M
2
+24RbThe derivative dQ/dP=
a.
15P
b.
−15
c.
15
d.
100+15P
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You have a demand function like this: Q=100+15P+0.004M
2
+24R. The derivative dQ/dM =
a)
0.008M
b)
0.004M
c)
0.002M
d)
0.008
To maximize or minimize a function Y in terms of an independent variable X, the rule is
a)
find X where dY/dX=0
b)
find where X−Y=0
c)
find X where dY/dX
is maximized or minimized.
d)
find Y where dX/dY=0