Why Are Large Amounts of Inventory Considered Wasteful

question 111

Multiple Choice

Why are large amounts of inventory considered wasteful?

• A)It ties up cash that could be used for other, more useful purposes.
• B)Inventory could spoil, get broken or stolen, or become obsolete.
• C)Storing inventory is very expensive.
• D)All of the above are reasons large amounts of inventory are considered wasteful.

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Definitions:

Pure Monopolist

An entity that is the sole provider of a particular product or service in a market, without any competitors, effectively controlling the market.

Increase Price

A strategy or action where the selling price of goods or services is raised to generate higher revenue or cope with increased costs.

Volume of Sales

The total quantity of goods or services sold by a company within a specific period.

Pure Monopolists

A single seller in a market with no close substitutes for its product, giving it significant control over price.