Which of the Following Is Not a Reason Why a Company

question 99

Multiple Choice

Which of the following is not a reason why a company would adopt JIT purchasing practices?

• A) high shrinkage costs
• B) low ordering costs
• C) low carrying costs of inventory
• D) reliable supply chains

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Definitions:

Transaction

An exchange or transfer of goods, services, or funds between two or more parties.

Deadweight Losses

Efficiency losses in an economy occurring when total societal welfare is not maximized, typically as a result of market distortions like taxes or subsidies.

Competitive Equilibrium

A state in a market where demand equals supply, meaning that there's no excess supply or demand at the current price.

Allocative Efficiency

A state of resource allocation where it is impossible to make any one individual better off without making someone else worse off, maximizing societal welfare.