A Change That Decreases the Expected Profit from Holding a Unit

question 182

Multiple Choice

A change that decreases the expected profit from holding a unit of product in inventory,_______ the expected marginal revenue curve and the _______profit-maximizing quantity to hold in inventory.

• A)increases; decreases
• B)decreases; decreases
• C)increases; increases
• D)decreases; increases

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Definitions:

Total Revenue

A financial measure defining the income generated from business activities or operations without deducting expenses.

Price Rationing

The allocation of goods among consumers using prices, where the goods go to those willing to pay the highest price, often used when demand exceeds supply.

Able

Generally refers to having the capacity, skill, or qualifications to perform an action or task.

Pay

The compensation received by an employee from an employer in exchange for work performed, typically provided as wages or salary.