A Problem with the ________ Model Is You Could Have

question 29

Multiple Choice

A problem with the ________ model is you could have too much or too little inventory.

• A) Foresight
• B) Hindsight
• C) Pull
• D) Push

---

Definitions:

Total Revenue

Total Revenue is the total amount of money received by a firm from sales of goods or services before any expenses are deducted.

Economic Profit

The contrast between cumulative revenue and cumulative costs, taking into account both clear and veiled expenses.

Economic Costs

The sum of explicit costs (direct payment for resources) and implicit costs (opportunity costs of using resources owned by the firm).

Marginal Revenue

Marginal revenue is the additional income that is generated by selling one more unit of a good or service.