When the price of gasoline rises, for example, it encourages profit-seeking firms to take several actions: expand exploration for oil reserves, drill for more oil, invest in more pipelines and oil tankers to bring the oil to plants where it can be refined into gasoline, build new oil refineries, purchase additional pipelines and trucks to ship the gasoline to gas stations, and open more gas stations or keep existing gas stations open longer hours.
Economists call this positive relationship between price and quantity supplied—that a higher price leads to a higher quantity supplied and a lower price leads to a lower quantity supplied—the law of supply. The law of supply assumes that all other variables that affect supply are held constant.
Answer:
Station 1 = 8 minutes
Explanation:
The computation of the bottleneck time minutes per unit is shown below:
Station 1 = 8 minutes
Station 2 = 12 minutes ÷ 2 machines = 6 minutes
Station 3 = 5 minutes
The station who has higher minutes per unit is considered to be the bottleneck station as it reduced the overall capacity.
So, station 1 is the bottleneck station with 8 minutes per unit
Answer:
47.67 days
Explanation:
The computation of the number of days to sell is shown below:
Number of days to sell is
= Average inventory ÷ Cost of goods sold × Total number of days in a year
Where
Annual inventory is
= (Beginning inventory + ending inventory) ÷ 2
= ($59,000 + $69,000) ÷ 2
= $64,000
So the number of days to sell is
= $64,000 ÷ $490,000 × 365 days
= 47.67 days
