The additivity assumption may fail under certain conditions such as:

a. Economies of scale
b. Buy one, get a second item of an equal or lower price for free.
c. Both a and b
d. Neither a nor b


B

Business

You might also like to view...

Hampton Inn's 100 percent satisfaction guarantee is a good example of a service guarantee that goes wrong and hurts a firm's financial performance

Indicate whether the statement is true or false

Business

Which of the following is NOT correct concerning the summary, conclusions, and recommendations of a formal report?

a. An informational report typically ends with a summary and has no conclusions or recommendations. b. An analytical report typically has no summary but has conclusions and recommendations. c. For short reports, the writer may place the summary, conclusions, and recommendations together in one section. d. All of the above are correct.

Business

Where is the main idea of a written paragraph usually found?

A. In the third line of the paragraph B. In the footer C. In the topic sentence D. In the header

Business

Fred's Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters

Quarter Demand Previous quarter's output 800 units 1 700 Beginning inventory 0 units 2 900 Stockout cost $100 per unit 3 1200 Inventory holding cost $10 per unit at end of quarter 4 600 Hiring workers $20 per unit Laying off workers $40 per unit Subcontracting cost $200 per unit Unit cost $100 per unit Which of the following production plans is better: Plan A–chase demand by hiring and layoffs; Plan B–pure level strategy, or Plan C–700 level with the remainder by subcontracting?

Business