In the Basic EOQ Model,an Annual Demand of 40 Units,an

question 94

Multiple Choice

In the basic EOQ model,an annual demand of 40 units,an ordering cost of $5,and a holding cost of $1/unit per year will result in an EOQ of:

• A)20
• B)square root of 200
• C)200
• D)400
• E)40

---

Definitions:

Quota

A quota is a government-imposed trade restriction that limits the number or monetary value of goods that can be imported or exported during a particular time frame.

Tariff

A tax imposed by a government on goods and services imported from other countries, intended to increase their price and make domestic products more competitive.

Most-Favored-Nation Status

A trade status granting a nation the best trading terms available to any other nation, such as lowest tariffs or highest import quotas.

Negotiated Tariff Rates

Tariff rates determined through bargaining between countries, rather than set unilaterally, often resulting in lower duties.