Chapter 17: The Theory of Investment Question: The work in process motive for holding inventories suggests that: O a. firms hold inventories in order to produce more output. O b. when a product is only partly completed, its components are counted as part of the firm's inventom when sales are low, firms produce more than they sell and put the extra goods in inventones, Od. firms cannot produce more because of higher cost of production. e firms hold inventories to avoid losing sales.
Chapter 17: The Theory of Investment Question: The work in process motive for holding inventories suggests that: O a. firms hold inventories in order to produce more output. O b. when a product is only partly completed, its components are counted as part of the firm's inventom when sales are low, firms produce more than they sell and put the extra goods in inventones, Od. firms cannot produce more because of higher cost of production. e firms hold inventories to avoid losing sales.
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![Chapter 17: The Theory of Investment
Question: The work in process motive for holding inventories suggests that:
P 4. firms hold inventories in order to produce more output.
when a product is only partly completed, its components are counted as part of the firm's inventory.
when sales are low, firms produce more than they sell and put the extra goods in inventories.
Od.
firms cannot produce more because of higher cost of production.
P firms hold inventories to avoid losing sales.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe57c2161-937b-47de-93d3-b344b4b1fef5%2Fedfba179-cf90-4180-8182-4fb5d452731d%2Fg5dvzo9_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Chapter 17: The Theory of Investment
Question: The work in process motive for holding inventories suggests that:
P 4. firms hold inventories in order to produce more output.
when a product is only partly completed, its components are counted as part of the firm's inventory.
when sales are low, firms produce more than they sell and put the extra goods in inventories.
Od.
firms cannot produce more because of higher cost of production.
P firms hold inventories to avoid losing sales.
![Chapter 17: The Theory of Investment
Question: Business fixed investment includes:
O a.
the fixed cost of borrowing that businesses pay for new equipment.
O b.
equipment and structures that businesses buy to use in production.
rental housing that landlords buy to rent out
d.
New labor that they employ
goods that businesses put aside in fixed storage facilities, including materials and supplies.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe57c2161-937b-47de-93d3-b344b4b1fef5%2Fedfba179-cf90-4180-8182-4fb5d452731d%2F7u1cck3_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Chapter 17: The Theory of Investment
Question: Business fixed investment includes:
O a.
the fixed cost of borrowing that businesses pay for new equipment.
O b.
equipment and structures that businesses buy to use in production.
rental housing that landlords buy to rent out
d.
New labor that they employ
goods that businesses put aside in fixed storage facilities, including materials and supplies.
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