Milton Friedman Argues That the Political Principle That Underlies the Market

question 14

Multiple Choice

Milton Friedman argues that the political principle that underlies the market mechanism is:

• A) Equality
• B) Polarity
• C) Unanimity
• D) Disagreement
• E) Diversity

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Definitions:

Production Order Quantity

The optimum quantity of goods a company should order for production which minimizes total inventory costs.

Retail Inventory

The total value of goods available for sale at a retail location, including items on the sales floor and in stock.

Shrinkage

Retail inventory that is unaccounted for between receipt and sale.

Economic Order Quantity

The ideal order quantity a company should purchase to minimize its inventory costs, including holding, setup, and shortage costs.