As a firm's order size increases, its total order-processing costs increase while its total inventory-holding costs decrease.

Name: As a firm's order size increases, its total order-processing costs increase while its total inventory-holding costs decrease.
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As a firm's order size increases, its total order-processing costs typically decrease due to economies of scale, but its total inventory-holding costs increase because it must store larger quantities of inventory.

As a Firm's Order Size Increases, Its Total Order-Processing Costs