All of the following are true regarding the Economic Order Quantity model except which one?
A) It determines the cost-minimizing quantity managers should order to keep in inventory.
B) It assumes demand is known with certainty.
C) It assumes demand is spread evenly over a time period.
D) It accounts for changes in interest rates.
D) It accounts for changes in interest rates.
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Which of these is most likely to reduce the potential output of an economy?
a. An increase in the size of the labor force b. A deterioration in the quality of the labor force c. A decrease in the cost of using computers d. A decrease in the price level e. An increase in the price level
What is a downside of trade protection?
a. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of driving the manufacturing completely out of the country. b. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of driving the manufacturing completely out of the country. c. It can give U.S. interests and domestic manufacturing too much of an advantage over items manufactured elsewhere, having the unintended effect of bringing more manufacturing into the country than can be handled. d. Instead of protecting U.S. interests and giving domestic manufacturing an advantage over items manufactured elsewhere, it can have the unintended effect of bringing more manufacturing into the country than can be handled.
Following an anticapitalist coup, Freedonia forces all citizens to turn in and stop using all credit cards. What is the most likely effect of this on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to credit cards.
Single company supplies the entire market for a particular good or service
What will be an ideal response?