Which of the Following Is Not an Assumption of the Economic

question 161

Multiple Choice

Which of the following is not an assumption of the economic order quantity model shown below? Q* =

• A) Demand is known, constant, and independent.
• B) Lead time is known and constant.
• C) Quantity discounts are not possible.
• D) Production and use can occur simultaneously.
• E) The only variable costs are setup cost and holding (or carrying) cost.

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Definitions:

Bodily-kinesthetic

Refers to the ability to coordinate and use one's body in skilled and complicated physical movements; often associated with physical activity and performance.

Crystallized Intelligence

The capability to apply acquired knowledge and past experiences.

Jensen

A reference to Arthur Jensen, a psychologist known for his work in the field of psychometrics and intelligence testing, often associated with controversial discussions on intelligence and race.

Wechsler

Refers to David Wechsler, a psychologist known for developing a series of standardized tests to assess human intelligence, including the Wechsler Adult Intelligence Scale (WAIS).