Ann Chovies,owner of the Perfect Pasta Pizza Parlour,uses 20 Pounds

question 101

Multiple Choice

Ann Chovies,owner of the Perfect Pasta Pizza Parlour,uses 20 pounds of pepperoni each day in preparing pizzas.Order costs for pepperoni are $10.00 per order,and holding costs are 4 cents per pound per day.Lead time for each order is 3 days,and the pepperoni itself costs $3.00 per pound. If she were to order 80 pounds of pepperoni at a time,what would be the total daily costs,including the cost of the pepperoni?

• A)$60.00
• B)$63.20
• C)$64.00
• D)$64.10
• E)$65.00

---

Definitions:

Tying Contracts

Tying contracts are agreements where a seller requires a buyer to purchase a secondary product as a condition of buying a desired primary product, often considered anti-competitive in nature.

Antitrust Laws

Regulations designed to promote competition and prevent monopolies by outlawing unfair practices that restrict trade.

Monopolization

The process or state where a single company or entity gains control over a particular market, eliminating competition and often leading to higher prices for consumers.

Natural Monopolies

A market situation where a single supplier is most efficient in providing goods or services due to high infrastructure or setup costs, making competition impractical.