The classical EOQ model assumes that the per-unit material price is fixed. The quantity discount condition _______________ the total cost curve.
A) supports
B) validates
C) enhances
D) lowers
E) invalidates

Question

Quizplus · Accepted Answer

The quantity discount condition invalidates the total cost curve in the classical EOQ model because it assumes a fixed per-unit price, and discounts introduce variable pricing.

The Classical EOQ Model Assumes That the Per-Unit Material Price