Which of the Following Is Not and Assumption of the Economic

question 48

Multiple Choice

Which of the following is not and assumption of the economic order quantity model?

• A)there are no discounts for bulk purchases.
• B)no buffer inventory is required.
• C)demand does not fluctuate seasonally.
• D)the amount of inventory held is constant over the period.

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Definitions:

Minimum Rent

The least amount of money that a lessee may pay to lease a property for a specific period, often set by contractual agreement.

Rationing Mechanism

A method or system used to allocate scarce resources, goods, or services among people, typically in situations of short supply.

Competitive Market

A market structure characterized by a large number of buyers and sellers, free entry and exit, and products that are similar in nature, leading to competitive prices.

Economic Policies

Actions taken by a government to influence its economy, including fiscal policy, monetary policy, and trade policy.