The Following Figure Shows an Individual's Total Cost of Renting

question 28

Multiple Choice

The following figure shows an individual's total cost of renting four apartments located at different distances from her place of work.

-Refer to the figure above.Other things remaining the same,assume that the individual now has a higher opportunity cost of time.Which of the following statements is true in this context?

• A) The cost curve will move up.
• B) The cost curve will move down.
• C) Optimization using total value will not lead to an efficient outcome.
• D) Optimization using marginal analysis will not lead to an efficient outcome.

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Definitions:

Kanbans

A scheduling system for lean manufacturing and just-in-time manufacturing that signals the need to move materials within a production facility.

Safety Stock

Inventory maintained beyond expected demand, providing a safeguard against unpredictability in supply chain and demand patterns, ensuring consistent availability of products.

Lead Time

The amount of time it takes for an order to be fulfilled from the moment it is placed.

Setup Cost

The cost incurred to prepare equipment or processes for manufacturing or production.