A Small Local Convenience Store Is Opening in Your Neighborhood

question 80

Multiple Choice

A small local convenience store is opening in your neighborhood.Inventory is limited and keeping initial start-up costs low is a priority.What type of inventory system would you recommend?

• A)perpetual
• B)periodic
• C)specific identification
• D)Company is so small one is not needed.

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Definitions:

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Income

The money received, typically on a regular basis, for work or through investments.

Utils Per Dollar

A hypothetical measurement of the utility or satisfaction a consumer gains from spending one dollar on a good or service.

Risk-Averse

Characteristic of preferring to avoid risk, leading to preference for safer, more certain outcomes over riskier ones.