Large Cost Savings from Reduced Inventories and Labor Savings by Needing

question 120

True/False

Large cost savings from reduced inventories and labor savings by needing fewer workers to handle inventory can be driving forces associated with the implementation of just-in-time inventory control systems.

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Definitions:

Market Outcome

The end result of market interactions, determined by supply and demand forces, affecting prices and quantities.

Efficient Price

A market price that fully reflects all available information and maximizes the total benefits to society.

External Benefits

Positive effects experienced by third parties or the public due to an economic transaction they were not directly involved in.

Market Outcomes

The results of interactions between buyers and sellers in a market, including price, quantity, and quality of goods and services traded.