The Relationship Between the MPS and the MPC Is Such

question 46

Multiple Choice

The relationship between the MPS and the MPC is such that

• A) MPC − MPS = 1.
• B) MPS/MPC = 1.
• C) 1 − MPC = MPS.
• D) MPC − 1 = MPS.

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Definitions:

Inventory

Inventory refers to the goods and materials that a business holds for the ultimate goal of resale or processing, including raw materials, work-in-progress, and finished goods.

Manufacturing

The process of converting raw materials or components into finished goods through the use of tools, machinery, and labor.

Wholesale

The sale of goods in large quantities at lower prices, typically to retailers who then sell them to the final consumer.

Retail

The sale of goods to the public in relatively small quantities for use or consumption rather than for resale.