We Allocate Resources Efficiently When

question 179

Multiple Choice

We allocate resources efficiently when

• A) marginal benefit is equal to marginal cost.
• B) marginal benefit is greater than marginal cost by any amount.
• C) marginal cost is greater than marginal benefit.
• D) total benefit is greater than total cost.
• E) marginal benefit is greater than marginal cost by as much as possible.

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Definitions:

Beginning Inventory

The value of all the inventory that a company has at the start of an accounting period before any purchases or sales are made.

Inventory Turnover

An indicator that measures the frequency at which a company's inventory cycles through sales and restocking within a given period.

Sales

The transactions involving the exchange of goods or services for money, reflecting a key revenue source for businesses.

Beginning Inventory

The financial value of stock ready for market at the beginning of a bookkeeping period.