The Ordering and Transportation Cost C for Components Used in a Manufacturing

question 8

Multiple Choice

The ordering and transportation cost C for components used in a manufacturing process is approximated by where C is measured in thousands of dollars and x is the order size in hundreds. According to Rolle's Theorem, the rate of change of the cost must be 0 for some order size in the interval Find this order size. Round your answer to three decimal places.

• A) 9.657 components
• B) 6.828 components
• C) 8.000 components
• D) 6.000 components
• E) 4.828 components

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Definitions:

Efficient Market Hypothesis

The assertion that information travels around the U.S. financial system so fast that stock prices virtually always reflect all available information. The concept implies that technical analysis is useless.

Stock Prices

The cost of purchasing a share of a company at any given time, reflecting the market's valuation of the company.

Publicly Available Information

Information that is not restricted and can be accessed by the general public, often used in the context of financial markets.

Cumulative Feature

A characteristic of preferred stock that allows for the accumulation of unpaid dividends which must be paid out before any dividends are given to common stockholders.