Not Having Enough Items Can Be as Bad As, and Sometimes

question 35

True/False

Not having enough items can be as bad as, and sometimes worse than, having too many items.

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Definitions:

Marginal Returns

The additional output that is produced as a result of increasing one more unit of an input while holding other inputs constant.

Marginal Cost

The additional cost incurred from the production of one more unit of a product or service.

Total Cost

The complete cost of production that includes both fixed and variable costs.

Opportunity Cost

The best alternative that we forgo, or give up, when we make a choice or a decision.