In the quantity discount model, if holding costs are given as a percentage of unit price, a graph of the total cost curves will have the same EOQ for each curve.

Question

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In the quantity discount model, when holding costs are given as a percentage of unit price, the Economic Order Quantity (EOQ) will vary for each curve because the holding cost changes with the unit price, affecting the total cost calculation and thus the EOQ.

In the Quantity Discount Model, If Holding Costs Are Given