A Merchant Keeping Inventory on Cost Price Had a Beginning

question 24

Short Answer

A merchant keeping inventory on cost price had a beginning inventory of $30,000, purchases of $150,000, and an ending inventory of $40,000. Compute the cost of goods sold.​

---

Definitions:

Constant Returns to Scale

A situation in production where increasing all inputs by a certain factor results in output increasing by the same factor.

Competitive Equilibrium

A market state where supply equals demand, resulting in an efficient distribution of goods and services without excess.

Price Ceiling

A government-imposed limit on the price charged for a product, intended to protect consumers from high prices.

Marginal Cost

The additional cost incurred in producing one more unit of a good or service.