A Merchant Who Deals in One-Of-A-Kind Items with Large Unit

question 29

Short Answer

A merchant who deals in one-of-a-kind items with large unit costs may account for inventory by the--------- method.

---

Definitions:

Economic Losses

Occurs when a company's total costs exceed its total revenues, indicating that the business is not efficiently allocating its resources.

Economic Profits

Profits exceeding the opportunity costs of a company's resources, indicating it is generating returns beyond the next best alternative.

Economic Profit

The difference between total revenue and total costs, including both explicit and implicit costs, in economic theory, representing the surplus generated by an entity in economic activities.

Long-run Equilibrium

A state where all factors of production can be varied, and all economic participants have fully adjusted to any changes, leading to a stable economic condition.