The Opportunity Cost of Producing a Good Rises Only Slightly

question 329

Multiple Choice

The opportunity cost of producing a good rises only slightly as the quantity produced increases.This good has

• A) an inelastic demand.
• B) an elastic demand.
• C) an elastic supply.
• D) an inelastic supply.
• E) a perfectly elastic supply.

Comprehend the process and significance of negotiating contracts and placing purchase orders in materials management.

Identify the key responsibilities and roles of a materials manager in coordinating supply and demand.

Recognize the legal and operational definitions relevant to materials management, such as purchase orders and contracts.

Understand the sourcing and procurement functions within an organization.

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Definitions:

Number of Successes

In statistical experiments, the count of instances that meet a defined criterion for success.

Standard Error

A measure of the variability or dispersion of a sampling distribution, often used as an estimate of the accuracy of a sample mean.

Plus Four Method

A statistical method that adds four to the sample size and regards two successes and two failures in a binomial proportion confidence interval.

P-value

The probability of obtaining a test statistic at least as extreme as the one observed, assuming the null hypothesis is true; used to determine statistical significance.