The Following Figure Shows the Cost Curves of a Firm

question 48

Multiple Choice

The following figure shows the cost curves of a firm producing good X.

-Refer to Figurer. Identify the supply curve of the firm.

• A)It is given by the MC curve.
• B)It is given by the vertical axis for price below minimum AVC and the upward-sloping portion of the MC curve for prices above minimum AVC.
• C)It is given by the vertical axis for price below minimum AC and the upward-sloping portion of the MC curve for prices above minimum AC.
• D)It is given by the portion of the MC above point E.

Appreciate the role of product fill rate and order fill rate in measuring supply chain performance.

Recognize the strategies for managing supply chain risks such as demand volatility and supply uncertainties.

Grasp the concept of echelon inventory and its significance in supply chain visibility.

Understand the concepts of safety inventory and its impact on fill rate and cycle service level.

---

Definitions:

Materials Purchased

The raw inputs or components bought by a company for use in the production of its goods.

Account

A record within an accounting system that tracks the financial transactions for a specific asset, liability, equity, revenue, or expense.

Activity Bases

Factors or units of measure that are used to allocate costs to cost objects, often related to production or sales volume.

Quality Inspections

The systematic examination of goods or services to ensure they meet specified standards of quality and performance.