Answer the Question on the Basis of the Following Table

question 229

Multiple Choice

Answer the question on the basis of the following table that shows the total costs and total benefits facing a city of five different potential baseball stadiums of increasing size. All figures are in millions of dollars. Applying the median-voter model and assuming that there are equal numbers of voters supporting each stadium, we would expect

• A) stadium C to be built, which would be the most socially efficient outcome.
• B) stadium C to be built, but this would not be the most socially efficient outcome.
• C) stadium D to be built because it produces the most socially efficient outcome.
• D) no stadium to be built, because of political gridlock.

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Definitions:

Parent Component

In manufacturing or software development, a main component that includes or is linked to subordinate components within a product or system.

Safety Stock

Inventory kept on hand as a buffer against variability in demand or supply, ensuring that out-of-stock situations are minimized.

MRP Logic

Refers to the set of principles and algorithms used in Material Requirements Planning systems to schedule and plan production and inventory in manufacturing.

Scheduled Receipts

Orders that have been placed but not yet received, scheduled to arrive at a specific future date.