ABC Inc. custom makes furniture. It has 20 workers who produce 135 units per quarter each. The cost per unit is $2500.00. If a pure chase strategy is used, how many workers are fired or hired during quarter 2? Be as close as possible. The quarterly demand information is provided below.
Q1:3,000 units, Q2:500 units, Q3:4,500 units, Q4:6,000 units
A) Hired 20 workers
B) Hired 5 workers
C) Fired 19 workers
D) No one is hired

With signals from no-claim bonuses and deductibles, a. the marginal cost curve for careful drivers lies to the left of the marginal cost curve for aggressive drivers b. auto insurance companies insure more aggressive drivers than careful drivers because aggressive drivers have a greater need for the insurance c. the market for car insurance has a separating equilibrium, and the market is efficient d. most drivers pay higher premiums than if the market had no signals