Chapter 17: The Theory of InvestmentQuestion: 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 InvestmentQuestion: 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 outd.New labor that they employgoods that businesses put aside in fixed storage facilities, including materials and supplies.

Work in process includes goods in inventory that are in the process of being completed. Option b is…

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.

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter9: Aggregate Demand

Section: Chapter Questions

Problem 4.8P

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