Which of the Following Are NOT Assumptions on Which the Economic

question 25

Multiple Choice

Which of the following are NOT assumptions on which the economic order quantity (EOQ) is based?

• A) demand is relatively constant and known
• B) the item is produced continuously
• C) order preparation costs, inventory carrying costs and lead times are constant and known
• D) replacement occurs all at once
• E) all of the above are true assumptions

Understand the impact of learning curves on production costs.

Evaluate business decisions on expanding product lines in light of economies and diseconomies of scope.

Understand the concept of long-run marginal cost and its implications on business expansion decisions.

Analyze the effects of swing shifts on short-run marginal cost and pricing strategies.

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Definitions:

Negligently Start

Refers to the act of initiating something (often a fire or other harm) due to carelessness or failure to take proper precautions.

State of Exhaustion

A legal or physical condition characterized by having exploited all available options or resources.

But-For Test

A legal test used to determine causation, indicating that an event (the consequence) would not have occurred but for a certain action (the cause).

Actual Cause

also known as "cause in fact," it refers to the factual determination that a defendant's actions are the direct cause of an event or damage.