Goods a Company Acquires to Use in Making Products Are

question 137

Multiple Choice

Goods a company acquires to use in making products are called:

• A) Cost of goods sold.
• B) Raw materials inventory.
• C) Finished goods inventory.
• D) Goods in process inventory.
• E) Conversion costs.

---

Definitions:

Deadweight Loss

A loss of economic efficiency that can occur when the equilibrium for a good or a service is not achieved or is not achievable, leading to a mismatch in supply and demand.

Demand Curve

A chart that displays the connection between a product's price and the amount of the product buyers are prepared and able to buy at different price levels.

Marginal Cost Curve

A graphical representation showing how the cost of producing one additional unit of a good changes as the production volume changes.

Monopoly Market

A market structure characterized by a single seller who has exclusive control over the supply of a product or service, and where there are high barriers to entry for other firms.