Table 12-4 Charles's Math Tutoring

question 188

Multiple Choice

Table 12-4
Charles's Math Tutoring

-Refer to Table 12-4.Suppose that Charles's math tutoring company has a fixed cost of $50 per month for his cell phone.Each worker costs Charles $60 per day.As output increases from 45 to 70 students,Charles's total cost curve

• A) increases but gets flatter.
• B) increases and gets steeper.
• C) decreases and gets flatter.
• D) decreases but gets steeper.

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Definitions:

Ordering Cost

The expenses associated with placing an order for additional inventory, including administrative costs and the cost of obtaining goods.

Purchase Price

The amount of money paid to buy a good or service.

Safety Stock

Additional inventory held to protect against uncertainties in demand or supply, ensuring sufficient stock is available to meet customer needs.

Service Level

A measure of the quality of service provided, often defined as the percentage of customer demands that are met on time.