Inventory Is a Stock of Items Used to Satisfy Customer

question 51

True/False

Inventory is a stock of items used to satisfy customer demand or support the production of goods or services.

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Definitions:

Short Run

A period in which at least one of a firm's inputs is fixed, limiting its capacity to adjust its output levels.

Long Run

A period of time in which all factors of production and costs are variable, allowing firms to adjust all inputs.

Marginal Cost

The cost of producing one additional unit of a good or service.

Marginal Revenue

The additional income that an organization receives from selling one more unit of a product or service.