The High-Rise Building Company Uses 400,000 Tons of Stone Per

question 67

Multiple Choice

The High-Rise Building Company uses 400,000 tons of stone per year. The carrying costs are $100/ton. The cost per order is $500. Calculate the optimal number of orders per year.

• A)400
• B)100
• C)200
• D)300

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Definitions:

Units of Y

A placeholder term generally referring to quantities or measurements of a variable Y.

Units of X

A measure or quantity of a particular good, product, or factor of production expressed as a discreet unit for analysis or transaction purposes.

Income

The amount of money received by an individual or entity in exchange for labor or services, from investments, or from other sources.

Budget Line

A graphical representation of all possible combinations of two goods that can be purchased with a given income and prices, illustrating the trade-offs between them.