Items Which Comprise Inventory Are

question 24

Multiple Choice

Items which comprise inventory are:

• A) work-in-process.
• B) finished goods.
• C) raw materials.
• D) all of the above.

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Definitions:

Returns to Scale

Describes how output changes in response to a proportional increase in all inputs in the production process; can be classified as increasing, constant, or decreasing.

Consumer Surplus

The gap between the aggregate amount consumers are willing to pay for a good or service and the sum they actually pay.

Producer Surplus

The difference between the amount producers are willing to accept for a good or service relative to its market price, essentially the profit producers make.

Price Discrimination

Price discrimination occurs when a seller charges different prices for the same product or service to different customers, based on the willingness to pay, often to maximize revenue.