The Nelson Company Has Four Distribution Centers (A, B, C

question 90

Multiple Choice

The Nelson Company has four distribution centers (A, B, C, and D) that require shipments of 20, 30, 40, and 10 units per week, respectively. Its three plants (1, 2, and 3) have monthly capacities of 40, 30, and 30, respectively. Shipping costs (in $) follow:
$$\begin{array}{l}\text { Distribution Center }\\\begin{array} { | c | c | c | c | c | } \hline \text { Plant } & \text { A } & \text { B } & \text { C } & \text { D } \\\hline 1 & 40 & 30 & 10 & 50 \\2 & 20 & 20 & 30 & 40 \\3 & 10 & 50 & 10 & 30 \\\hline\end{array}\end{array}$$
What can be said about a plan that ships 40 units from 1 to C, 30 units from 2 to B, 20 units from to A, and 10 units from 3 to D?

• A) It is feasible, and the weekly shipping cost is less than $1,600.
• B) not feasible in terms of plant capacities.
• C) feasible, and the weekly shipping cost is greater than $2,000.
• D) not feasible in terms of satisfying distribution center demands.

Identify examples of public goods and externalities.

Explain the significance of external costs and their impact on the environment.

Recognize the role of government in addressing externalities and providing public goods.

Understand the concept of mixed economies and the balance between private and public sectors.

---

Definitions:

Bearer Instrument

A type of negotiable instrument that is not registered to a specific owner and can be transferred by possession alone.

Order Instrument

A financial document that is made payable to a specific individual or entity, requiring endorsement for transfer or payment.

Burden Of Proof

The obligation to prove one's assertion or claim in a legal proceeding.

Responsible Party

The individual or entity legally obligated or held accountable in a particular situation or for a specific act.