As the inventory of a firm rises
A) there is no change in its capital.
B) its intangible capital increases.
C) its tangible capital increases.
D) its social capital decreases.

Question

Quizplus · Accepted Answer

When a firm's inventory rises, it means the firm has more physical goods or materials on hand, which is a direct increase in its tangible capital. Tangible capital refers to physical assets, including inventory.

As the Inventory of a Firm Rises