Which of the Following Is Evidence of a Surplus of Bananas

question 182

Multiple Choice

Which of the following is evidence of a surplus of bananas?

• A)Firms raise the price of bananas.
• B)The price of bananas is lowered in order to increase sales.
• C)The equilibrium price of bananas rises due to an increase in demand.
• D)The quantity of bananas demanded is greater than the quantity supplied.

Recognize the role of safety stock in compensating for demand variability and lead time uncertainties.

Grasp the importance of cyclical counting, shrinkage, and ABC analysis in inventory management.

Appreciate the strategic reasons for holding inventory in organizations and the impact of inventory on operational efficiency.

Understand the concepts of simple and compound interest.

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Definitions:

MR = MC

The optimal point in economic theory where marginal revenue equals marginal cost, leading to the most efficient level of production.

D = ATC

The condition where a firm's demand curve (D) equals its average total cost (ATC), often used in economic models to analyze firm behavior.

Selling Price

The actual price at which a product or service is sold to the customer.

Quantity

The amount or number of a material or abstract thing not requiring a unit of measurement.