Refer to the Following Table to Answer the Following Questions

question 49

Multiple Choice

Refer to the following table to answer the following questions:

-If the price of attending a soccer game changes from $20 to $25,the marginal utility per dollar spent for the fifth game changes from

• A) 3.75 to 3.00.
• B) 4.00 to 3.00.
• C) 5.00 to 4.00.
• D) 3.00 to 3.75.
• E) 18.75 to 15.00.

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Definitions:

Economic Order Quantity

The optimal quantity of inventory to order that minimizes the total costs associated with ordering and holding inventory.

Carrying Costs

Expenses associated with holding inventory, such as storage, insurance, and opportunity costs, until it is sold or used in production.

Annual Requirements

The total quantity or volume of resources, goods, or services needed by an organization or project over the course of a year.

Pull System

A method of production control where downstream activities signal their needs to upstream activities, promoting just-in-time production and minimizing inventories.