Change in Inventories Equals the Difference Between

question 140

Multiple Choice

Change in inventories equals the difference between

• A) production and investment.
• B) sales and investment.
• C) production and sales.
• D) investment and depreciation.

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Definitions:

Output

The quantity of goods or services produced in a given time period by a firm, industry, or country.

Output

The complete sum of outputs, whether goods or services, created by an enterprise, industry, or economic entity.

Marginal Revenue

The revenue enhancement a company experiences by selling another unit of a product or service.

Total Revenue

The total amount of money received by a firm from sales of its products or services, calculated as the quantity sold times the price per unit.