If a Computer Retailer Has 20 Computers at the Beginning

question 120

Multiple Choice

If a computer retailer has 20 computers at the beginning of the month, receives an additional 35 computers during the month, and sells no computers during the month, the retailer's inventory investment for that month would be

• A)minus 35 computers.
• B)plus 20 computers.
• C)minus 20 computers.
• D)plus 35 computers.
• E)plus 55 computers.

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Definitions:

Opportunity Costs

A concept in economics that describes the potential benefits that an individual, investor, or business misses out on when choosing one alternative over another.

ATC

Average Total Cost is the sum of all production costs divided by the quantity of output produced.

Perfectly Competitive Firm

A theoretical business entity in a market where no single company can influence the price of goods or services, and where all products are identical.

Market Demand

The total quantity of a good or service that all consumers in a market are willing and able to purchase at various prices.