An assembly line can produce 60 units per hour. The line's hourly cost is $3600 on straight time (the first 8 hours). Workers are guaranteed a minimum of 6 hours. There is a 50% premium for overtime, and productivity for overtime drops by 5%. What are the average and marginal costs per unit for the following daily quantities? (a) 300. (b) 400.
An assembly line can produce 60 units per hour. The line's hourly cost is $3600 on straight time (the first 8 hours). Workers are guaranteed a minimum of 6 hours. There is a 50% premium for overtime, and productivity for overtime drops by 5%. What are the average and marginal costs per unit for the following daily quantities? (a) 300. (b) 400.
Chapter6: Proudction Costs
Section: Chapter Questions
Problem 9SQP
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