You Sell 28,000 Units of an Item Each Year

question 291

Multiple Choice

You sell 28,000 units of an item each year. The carrying cost per unit is $.42 and the fixed costs per order are $52. What is the economic order quantity?

• A) 1,862 units
• B) 1,907 units
• C) 2,414 units
• D) 2,507 units
• E) 2,633 units

---

Definitions:

Human Capital

The economic value of the abilities, skills, knowledge, and experience possessed by an individual or population.

Particular Use

Suggests a specific application or purpose that something is designed or utilized for.

Labor Supply Curve

A graphical representation showing the relationship between the amount of labor workers are willing to provide at various wage rates.

Labor-Leisure Tradeoff

The decision-making process individuals undergo when choosing between dedicating time to work for income versus engaging in leisure activities.