Quantity Discounts Lower the Unit Cost

question 40

Multiple Choice

Quantity discounts lower the unit cost

• A)but tend to increase the required batch size and as a result,reduce the cycle inventory.
• B)but tend to increase the required batch size and as a result the cycle inventory.
• C)and tend to reduce the required batch size and as a result the cycle inventory.
• D)and tend to reduce the required batch size and as a result,increase the cycle inventory.

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Definitions:

Consumption

The use of goods and services by households or individuals, constituting one of the primary components of economic activity.

Nonlabor Income

Income received from sources other than employment, such as investments, pensions, or gifts.

Wage Rate

The amount of money that an employee is paid per unit of time, such as an hour, often analyzed in labor economics.

Labor Income

Earnings derived from employment, including wages, salaries, bonuses, and other compensation for work performed.