Table: Demand and Utility Schedules for Packs of Scented Candles

question 23

Multiple Choice

Table: Demand and Utility Schedules for packs of scented candles $$\begin{array} { | c | c | c | c | } \hline \text { Price } & \text { Quantity Demanded } & \text { Marginal Utility } & \text { Total Utility } \\\hline \$ 8 & 1 & & \\\hline \$ 7 & 2 & & \\\hline \$ 6 & 3 & & \\\hline \$ 5 & 4 & & \\\hline \$ 4 & 5 & & \\\hline\end{array}$$
-If the price were $5 each,her consumer surplus would be

• A)$31.
• B)$20.
• C)$18.
• D)$7.
• E)$6.

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Definitions:

Lot Sizing

The process of determining the optimal number of units to be produced, ordered, or delivered in one batch.

MRP

Material Requirements Planning, a system for efficiently managing the manufacturing process, including inventory levels, production planning, and scheduling.

Bill of Material

A comprehensive list of raw materials, sub-assemblies, intermediate assemblies, sub-components, parts, and the quantities of each needed to manufacture a product.

Explosion

A rapid increase in volume and release of energy in an extreme manner, often with the generation of high temperatures and the release of gases.