The graph is a marginal cost curve that compares expenses for producing apple pies. A graph titled Marginal Cost of Producing Pies has quantity supplied on the x-axis, from 0 to 6 pies, and marginal cost on the y-axis, from 0 to 1 dollar and 60 cents in increments of 20 cents. The cost increases from 0 pies to 1 pie and then decreases to 3 pies. The cost again begins to increase at 4 pies. According to the graph, the marginal cost begins to increase when the producer makes two pies. three pies. four pies. five pies.

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.