The Demand for Motorcycle Tires Imported by Dixie Import-Export Is

question 117

Multiple Choice

The demand for motorcycle tires imported by Dixie Import-Export is 20,000/year and may be assumed to be uniform throughout the year. The cost of ordering a shipment of tires is $200, and the cost of storing each tire for a year is $2. ​
Determine how many tires should be in each shipment if the ordering and storage costs are to be minimized. (Assume that each shipment arrives just as the previous one has been sold.)
​

• A) 2,000
• B) 500
• C) 1,000
• D) 2,500

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Definitions:

Reinforcement Given

The delivery of a stimulus following a behavior that increases the likelihood of that behavior being repeated.

Fixed Time Interval

In operant conditioning, a reinforcement schedule where a response is rewarded only after a specified amount of time has elapsed.

Variable Time Interval

A schedule in operant conditioning where reinforcement is provided after varying intervals of time.

Variable Ratio Schedule

A reinforcement schedule in operant conditioning where a response is rewarded after an unpredictable number of responses.