Which of the Following Statements Is TRUE

question 39

Multiple Choice

Which of the following statements is TRUE?

• A)Cartels are an important source of economic growth in developing countries.
• B)Economists are not opposed to government-created cartels since they usually provide high-quality products and
• Service.
• C)One cost of government-sponsored cartels is that people spend resources trying to obtain or maintain a cartel rather
• Than produce better products.
• D)All of the answers are correct.

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Definitions:

Perpetual System

A perpetual system is an inventory management approach that continuously tracks inventory levels and costs, updating records with each purchase and sale.

Inventory Cost

Inventory cost includes all expenses associated with acquiring, holding, and processing goods that are to be sold, including the costs of materials, labor, and overhead.

Customer Demand

The desire and willingness of consumers to purchase goods and services at given prices.

Inventory Turnover

A ratio that measures how often a company sells and replaces its stock of goods within a certain period, indicating efficiency in inventory management.