Multiple Choice
The desired level of inventories is the level at which the extra cost (in lost sales) from lowering inventories by a small amount is
A) greater than the extra gain (in interest revenue and decreased storage costs) .
B) zero.
C) less than the extra gain in (in interest revenue and decreased storage costs) .
D) just equal to the extra gain (in interest revenue and decreased storage costs) .
Correct Answer:
Verified
Correct Answer:
Verified
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