A Firm Can Sell 14 Units at $18,but to Sell

question 227

Multiple Choice

A firm can sell 14 units at $18,but to sell 15 units,the firm must cut the price to $17.The marginal revenue derived from selling the 15th unit is

• A)-$18.
• B)0.
• C)$3.
• D)$17.
• E)$18.

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Definitions:

Bullwhip Effect

A phenomenon in supply chains where variations in demand cause progressively larger variations in supply, leading to inefficiency and excess inventory.

Distributer

A company or individual responsible for the movement of goods from a manufacturer to the point of sale, usually adding value through storage, transportation, and marketing.

Large Order

A request for a significantly large quantity of goods or services.

Postponement

A supply chain strategy that delays the final activities in the production process (such as assembly, packaging, or shipping) until the latest possible time to reduce inventory and increase customization.