When Describing the Opportunity Cost of Two Producers,economists Use the Term

question 43

Multiple Choice

When describing the opportunity cost of two producers,economists use the term

• A)natural advantage.
• B)trading advantage.
• C)comparative advantage.
• D)absolute advantage.

---

Definitions:

Merchandise Inventory

Goods that a company holds for the purpose of sale to customers, typically reported as a current asset on the balance sheet.

Ending Inventory Balance

The total value of all the goods that a company still has on hand at the end of an accounting period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor used to create the product.

Inventory Turnover

A measure illustrating the frequency at which a firm's stock is sold and replenished within a specific timeframe, showcasing the effectiveness of managing inventory.