Inventories Are

question 96

Multiple Choice

Inventories are

• A)goods that have not been purchased but have been produced during the current year.
• B)consumer expenditures.
• C)part of the debt surplus.
• D)part of next exports.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold in a competitive marketplace.

Total Cost

The total cost is the sum of fixed and variable costs incurred in the production of goods or services.

Economic Profit

The difference between total revenue and the total costs of inputs, including both explicit and implicit costs.

Normal Profit

The minimum profit necessary for a company to remain competitive in the market, essentially covering its opportunity costs.