It Takes a Retailer Three Days to Process an Order

question 55

Multiple Choice

It takes a retailer three days to process an order and the supplier an additional five days to deliver ordered merchandise.The retailer should begin to order new merchandise ________.

• A) when the current inventory is at 15 units
• B) at least two days before the old inventory runs out
• C) at least eight days before the old inventory runs out
• D) at least ten days before the old inventory runs out

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Definitions:

Total Product Curve

A graphical representation in economics that shows the total quantity of output produced by a firm for varying quantities of a single input.

Variable Input

Inputs or resources whose usage varies with the level of production output, such as raw materials or labor.

Production Level

Refers to the total quantity of goods or services produced by a firm or industry during a specific period.

Marginal Returns

The additional output generated by adding one more unit of a specific input, while keeping other inputs constant.