Which of the Following Is NOT One of the Baumol

question 70

Multiple Choice

Which of the following is NOT one of the Baumol model's unrealistic assumptions?

• A) The firm has a constant, perfectly predictable distribution rate for cash.
• B) No cash will come in during the period in question.
• C) no allowance for any safety stock of extra cash to buffer the firm against unexpectedly high demand for cash
• D) no assumption to start from a replenishment level of cash then decline smoothly to a value of zero

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Definitions:

Charles Darwin

A natural scientist from the 1800s who is renowned for his work on evolution and the concept of survival of the fittest.

User's Manual

A guidebook that provides instructions for the operation or understanding of a system, device, or software.

Physical World

Everything that exists naturally, including the land, seas, planets, and stars, as opposed to the digital or imagined worlds.

Natural Selection

The process by which organisms better adapted to their environment tend to survive and produce more offspring.