The Figure Above Shows the Demand Curve for Pizza and the Market

question 14

Multiple Choice

The figure above shows the demand curve for pizza and the market price of pizza.
-In the figure above,the total benefit from pizza is ________ per day.

• A) $100,000
• B) $50,000
• C) $125,000
• D) $150,000
• E) None of the above answers is correct.

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Definitions:

Economic Order Quantity Model

An inventory control technique that minimizes the total of ordering and holding costs.

Quantity Discounts

Reduced prices offered to customers who purchase goods or services in large volumes or quantities.

Setup Cost

The expenses incurred to prepare a machine, process, or system for a particular production run or for the delivery of a service.

EOQ

The Economic Order Quantity is a formula used to determine the optimal order quantity that minimizes total inventory costs, including ordering and holding costs.