In an auction, potential buyers compete for a good by submitting bids. adam galinsky, a social psychologist at northwestern university, compared ebay auctions in which the same good was sold. he found that, on average, the higher the number of bidders, the higher the sales price. for example, in two auctions of identical ipads, the one with the higher number of bidders brought a higher selling price. according to galinsky, this explains why smart sellers on ebay set absurdly low opening prices (the lowest price that the seller will accept), such as 1 cent for a new ipad. use the concepts of consumer and producer surplus to explain galinsky’s reasoning.

Ashare stock is a small piece of ownership in a company ture or false

M. cotteleer electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and other home appliances. one of the components has an annual demand of 235 units, and this is constant throughout the year. carrying cost is estimated to be $1.25 per unit per year, and the ordering (setup) cost is $21 per order. a) to minimize cost, how many units should be ordered each time an order is placed? b) how many orders per year are needed with the optimal policy? c) what is the average inventory if costs are minimized? d) suppose that the ordering cost is not $21, and cotteleer has been ordering 125 units each time an order is placed. for this order policy (of q = 125) to be optimal, determine what the ordering cost would have to be.

Kinc. has provided the following data for the month of may: inventories: beginning ending work in process $ 17,000 $ 12,000 finished goods $ 46,000 $ 50,000 additional information: direct materials $ 57,000 direct labor cost $ 87,000 manufacturing overhead cost incurred $ 63,000 manufacturing overhead cost applied to work in process $ 61,000 any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold. the adjusted cost of goods sold that appears on the income statement for may is: