Economists Refer to the Inputs That Firms Use to Produce

question 213

Multiple Choice

Economists refer to the inputs that firms use to produce goods and services as

• A)derived factors.
• B)derived resources.
• C)factors of production.
• D)instruments of revenue.

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Definitions:

Optimal Order Quantity

Optimal order quantity is the number of units that minimizes the total holding and ordering costs for a company's inventory.

Total Cost

The complete cost of producing or acquiring goods or services, including fixed and variable costs, but excluding externalities.

Holding Inventory

involves maintaining a stock of goods or materials to meet demand without incurring stockout or excessive surplus costs.