Economists Assume That

question 63

Multiple Choice

Economists assume that

• A)individuals behave in unpredictable ways.
• B)consumer behavior is explained by the existence of unlimited resources.
• C)people put other people's interests ahead of their own.
• D)optimal decisions are made at the margin.

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Definitions:

Variable Cost

A cost that varies directly with the level of production or sales volume.

Net 30 Policy

A payment term indicating that payment is due in full 30 days after the invoice date.

Reorder Point

The inventory level at which an order should be placed to replenish stock before it runs out, ensuring continuous operation.