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In an all-unit quantity discount context, price c1 is automatically dropped to c2 when the retailer buys 1000 or more units at once. The retailer
In an all-unit quantity discount context, price c1 is automatically dropped to c2 when the retailer buys 1000 or more units at once. The retailer computes its economic order quantities for orders less 1000 and for orders more than or equal to 1000, these order quantities are respectively denoted by EOQ1 and EOQ2. The retailer finds out that 1000 < EOQ1 < EOQ2. Which one of the following is incorrect? (a) c1 > c2 (b) The optimal order quantity for the retailer is EOQ2 (c) The optimal order quantity for the retailer is greater than 1000 (d) None of the above
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