If the Economic Order Quantity for an Item Is 140

question 41

Multiple Choice

If the economic order quantity for an item is 140, what is the average number of cycle inventory units?

• A) There are no units in cycle inventory.
• B) 70 units.
• C) 140 units.
• D) More than 140 units.

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Definitions:

Demand Curve

A graphical representation showing the relationship between the price of a good and the amount of that good consumers are willing to buy.

Support Price

A price level set by governments in order to maintain the market price of a good or service at a particular minimum level to protect producers.

Consumer Surplus

The difference between what consumers are willing to pay for a good or service versus what they actually pay, measuring the benefit to consumers from participation in the market.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market equilibrium.