Other Things Remaining the Same, If the Average Aggregate Inventory

question 49

Multiple Choice

Other things remaining the same, if the average aggregate inventory value goes down, then

• A) inventory turnover ratio and weeks of supply will both go down.
• B) inventory turnover ratio will go down, but the weeks of supply will stay the same.
• C) inventory turnover ratio and weeks of supply will both go up.
• D) inventory turnover ratio will go up, but weeks of supply will go down.
• E) inventory turnover ratiowill stay the same, but weeks of supply will go down.

Differentiate between Total Variable Cost (TVC), Total Fixed Cost (TFC), and Total Cost (TC) and their behaviors in business operations.

Analyze the behavior of cost curves in the short run and their economic rationale.

Interpret the effects of technological advances on cost curves.

Comprehend the relationship between Total Cost (TC), Total Variable Cost (TVC), and Marginal Cost (MC).

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