Santorini Corporation Has Experienced a Number of Out-Of-Stock Situations with Respect

question 31

Essay

Santorini Corporation has experienced a number of out-of-stock situations with respect to its finished-goods inventories. Inventory at the end of May, for example, was only 50 units-an all-time low.
Management desires to implement a policy whereby finished-goods inventory is 70% of the following month's sales. Budgeted sales for June, July, and August are expected to be 5,000 units, 5,600 units, and 5,500 units, respectively.
Required:
Determine the number of units that Santorini must produce in June and July.

Explain the conditions under which monopoly leads to allocative and productive inefficiency.

Determine how monopolistic firms calculate marginal revenue and use it to make production decisions.

Assess the role of patents and technology in establishing and maintaining monopolies.

Understand the concept of natural monopoly and its causes.

---

Definitions:

Solution-Focused

An approach that emphasizes finding solutions in the present time and exploring one’s hope for the future to find quicker resolutions of one’s problems.

Cotherapeutic

Pertaining to a treatment situation where two therapists work together for the benefit of a client or group of clients.

Cultural Competence

Therapist’s understanding and attention to issues of race, culture, and ethnicity in providing treatment.

Race, Culture, Ethnicity

Distinct categories that encompass the social, cultural, and biological factors defining groups of people based on shared traits, history, language, or ancestry.