Which of the Following Statements Is True

question 30

Multiple Choice

Which of the following statements is true?

• A)The optimal order quantity,Q*,is fairly sensitive to errors in estimates of unit costs,as demonstrated by the fact that Q* will increase by a factor of 2-squared if the acquisition cost,a,is doubled.
• B)The optimal order quantity,Q*,is fairly sensitive to errors in estimates of unit costs,as demonstrated by the fact that Q* will increase by a factor of 2-squared if the carrying cost,c,is halved.
• C)The optimal order quantity,Q*,is fairly insensitive to errors in estimates of unit costs,as demonstrated by the fact that Q* will increase by a factor of only 4-square-root if the acquisition cost,a,is doubled.
• D)The optimal order quantity,Q*,is fairly insensitive to errors in estimates of unit costs,as demonstrated by the fact that Q* will increase by a factor of only 2-square-root if the acquisition cost,a,is doubled.

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Definitions:

Extrinsic Rewards

Benefits and rewards that come from an external source, often used as motivation in various settings.

Pleasure

A feeling of happiness or satisfaction that can be derived from sensory experiences, accomplishments, or social interactions.

Taste Preferences

Individual differences in the liking or disliking of certain flavors and foods.

Evolutionary Heritage

The traits, characteristics, or behaviors that have been passed down through generations as a result of evolutionary processes.