Consider the Following Demand and Cost Information for a Monopoly

question 91

Multiple Choice

Consider the following demand and cost information for a monopoly.
Table 11-1
Refer to Table 11-1. The marginal cost of the fourth unit is

• A) $7.
• B) $12.
• C) $25.
• D) $60.

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Definitions:

Bullwhip Measure

A method or metric used to quantify the degree of the bullwhip effect within a supply chain.

Standard Deviation

A measure of the amount of variation or dispersion of a set of values, used in statistics to quantify the variance from the mean.

Bullwhip Effect

The phenomenon where variations in demand at the retail level cause progressively larger fluctuations in demand at the wholesale, distributor, manufacturer, and raw material supplier levels.

Shortage Gaming

A strategy used in supply chain management where participants may exaggerate their needs to avoid stockouts, often leading to inefficiencies or distortions in supply chains.