If the Marginal Reduction in Order Costs Exceeds the Marginal

question 43

Multiple Choice

If the marginal reduction in order costs exceeds the marginal carrying cost of inventory,then:

• A) the firm has minimized its total carrying costs.
• B) the firm should increase its order size.
• C) the firm should decrease its order size.
• D) the firm has maximized its order costs.

---

Definitions:

Car Buyer

An individual or entity that purchases a vehicle for personal use, commercial use, or resale.

Principal Debtor's

Pertains to the main individual or entity obligated to repay a debt or loan.

Lack of Capacity

The legal inability of an individual or entity to engage in certain activities or enter into contracts due to age, mental state, or other disqualifications.

Surety

Surety is a financial guarantee provided by a third party, promising to pay a debt or perform an obligation if the primary party fails to do so.