Which of the following is not an important economic question related to scarcity that every nation must answer? A. What should we produce? B. How should we produce it? C. From who should we produce it? D. What are the factors of production?

The purchasing agent for a company that assembles and sells air-conditioning equipment in a latin american country noted that the cost of compressors has increased significantly each time they have been reordered. the company uses an eoq model to determine order size. what are the implications of this price escalation with respect to order size? what factors other than price must be taken into consideration?