A positive externality or spillover benefit (additional social benefit) occurs when rev: 04_09_2018 Multiple Choice a firm does not bear all of the costs of producing a good or service. the benefits associated with a product exceed those that accrue for consumers. product differentiation increases the variety of products available to consumers.

Mr. drucker uses a periodic review system to manage the inventory in his dry goods store. he likes to maintain 15 sacks of sugar on his shelves based on the annual demand figure of 225 sacks. it costs $2 to place an order for sugar and costs $1 to hold a sack in inventory for a year. mr. drucker checks inventory one day and notes that he is down to 9 sacks; how much should he order?