Bioclean Co

question 106

Multiple Choice

Bioclean Co., a merchandiser, sells a biodegradable cleaning product and has predicted the following unit sales for the first four months of the current year: Ending inventory for each month should be 20% of the next month's sales, and the December 31 inventory is consistent with that policy. How many units should be purchased in February?

• A) 2,000.
• B) 2,420.
• C) 2,020.
• D) 1,600.
• E) 2,820.

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Definitions:

Long-Run Equilibrium

A state in which all factors of production and outputs in an economy have fully adjusted and all changes are reflected in prices.

Marginal Revenue Curve

Illustrates how marginal revenue changes as the quantity of output sold changes.

Perfectly Competitive

A market structure characterized by a large number of small firms, a homogeneous product, perfect information, and no barriers to entry or exit.

Monopolistic Firm

A company that possesses significant market power, allowing it to set higher prices compared to a perfectly competitive market.