The Height of the Supply Curve at a Quantity of 100

question 99

Multiple Choice

The height of the supply curve at a quantity of 100 represents the

• A) total value of all 100 units to consumers.
• B) minimum price required to induce a producer to supply the hundredth unit.
• C) equilibrium price of the good regardless of the position of the demand curve.
• D) profit derived by producers from the sale of the hundredth unit.

---

Definitions:

Retail Inventory Method

An accounting method used by retailers to estimate inventory cost by calculating a cost-to-retail percentage and applying it to the ending retail value of inventory.

Inventory Valuation

The method of calculating the cost associated with inventory at the end of an accounting period to determine the cost of goods sold and inventory on hand.

LIFO Perpetual Inventory System

An inventory management method where the last items added to inventory are assumed to be the first sold, continuously updated.

Ending Inventory

The amount of goods available for sale at the finis of an accounting cycle.