In the economic order quantity model

Assignment Help Business Economics
Reference no: EM131103592

In the economic order quantity (EOQ) model, if the holding cost and the ordering cost both double, the value of Q* will:

A decrease by 50%.

B double.

C remain unchanged

D quadruple.

Reference no: EM131103592

Questions Cloud

Price stability using government purchases and taxes : Full employment GDP is $11,000. Equilibrium GDP is $10,000. The marginal propensity to consume is.5. What could the government do to achieve full employment and price stability using a) government purchases and b) taxes?
Increase in the federal minimum wage : Take a position for or against an increase in the Federal Minimum Wage. Make sure that your response includes the impact that your position would have on the distribution of wealth in American society.
Assess the strengths and weaknesses of systems models : A Systems Model of Politics and Policy in Birkland, assess the strengths and weaknesses of systems models. For every weakness that you identify, recommend how policy makers can overcome the weakness.
Contestable markets-in market an incumbent monopoly faces : Contestable markets.: In a market an incumbent monopoly faces the following cost curve C(q)=F+cq where F>0 is a fixed cost and c>0 is the marginal cost of production. A potential entrant contests the monopoly. However, due to second mover disadvantag..
In the economic order quantity model : In the economic order quantity (EOQ) model, if the holding cost and the ordering cost both double, the value of Q* will:
Pricing strategy-profit that results from two-part pricing : You are a pricing analyst for QuantCrunch Corporation, a company that sells a statistical software package. To date, you only have one client. A recent internal study reveals that this client’s demand for your software is Q=300-0.20P and that it woul..
Sells product to two groups of consumers in different parts : You are the manager of a monopoly that sells a product to two groups of consumers in different parts of the country. Group 1’s elasticity of demand is -2, while group 2’s is -5. Your marginal cost of producing the product is $10. Which of the followi..
Adopt the asian model of economic growth : Is it possible for Latin American countries to "adopt" the "Asian model of economic growth"? What policies from the East Asian countries could be exportable to other countries and potentially be successful?
Does this bank still meet the regulation on capital : Assume the required reserve is 10% and the capital requirement is 5%, does this bank meet the regulation on reserves and capital? Suppose that 5% of loan is written off (loan cannot be collected). Does this bank still meet the regulation on capital?

Reviews

Write a Review

Business Economics Questions & Answers

  Demand is perfectly elastic the demand curve is horizontal

if demand is perfectly elastic the demand curve is horizontal. if demand for x shifts right as the price of good y increases, then x and y are substitutes. supply shifts rightward if input prices rise. it is possible for an economy to be inside its p..

  Show the income consumption curve for this consumer

Show the Income Consumption Curve for this consumer for income values M = 12, M = 24, and M = 36.

  How much the quantity of a good traded changes after a shift

How much the quantity of a good traded changes after a shift of the supply curve depends on the size of the shift.

  Inflation is forecasted to remain consistent

Inflation is forecasted to remain consistent with its target over the next 1-2 years. Inflation arises when:

  How long will this discount change the consumer surplus

How long will this discount change the consumer surplus and producer surplus? Will Big Top be more efficient by offering the discount to children?

  Price-taking firm has a short run cost function

A price-taking firm has a short run cost function SC(q) = 3q^2 + 18q + 600. Calculate the profit for this firm if the price is P = 72. Using either an integral or geometry, calculate the producer surplus for the firm at P = 72. Explain how the Produc..

  Market returns to the long-run equilibrium

Assume that apples are an inferior good. Draw a perfectly competitive market for apples and a firm selling apples in the long run equilibrium where price is $10 and the firm’s equilibrium quantity is 50. EXPLAIN what happens in the short-run if custo..

  Determining the favor of restricting trade

Provide summarized but full discussion of the case in favor of restricting trade. Using a simple model, present the benefits of trade negotiations for countries in today's global economy.

  Show the new quantity demanded at that price

show the new quantity demanded at that price as we did in class. Also, show that the new total revenue will be greater than then old total revenue.

  Illustrate which the individuals utility is rising

Draw the indifference curves that represent the following individual's preferences for peanut butter and jelly. Indicate the direction in which the individuals' utility is rising.

  Simple monetary model to derive the general monetary model

In many cases, particularly instances of hyperinflation, we do not observe a stable demand for real money balances that is proportional to real output (i.e, MD/p≠LxY). Explain how we alter the simple monetary model to derive the general monetary mode..

  The incremental cost-effectiveness ratio of the new drug

Consider that two drugs are available for the management of diabetic patients. The first, drug, the current practice, costs $12,000 over 15 years. The new drug costs $7,500 over 15 years. The outcome measure, quality adjusted life years (QALY) with t..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd