If total production is greater than total expenditures,then business firms
A) have underproduced.
B) will step up production.
C) will lower production.
D) will experience decreases in inventory.
E) a and b

Question

Quizplus · Accepted Answer

When total production exceeds total expenditures, it means that not all produced goods are being sold, leading to an increase in inventory. To balance this, firms will typically lower production to prevent excess inventory.

If Total Production Is Greater Than Total Expenditures,then Business Firms