Optimal inventory levels are lower when carrying costs are high,and when the cost of restocking inventories is low.

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This statement is true. When carrying costs are high, it becomes more expensive to store inventory for extended periods of time. Therefore, businesses may look to reduce their inventory levels in order to minimize carrying costs. Similarly, when the cost of restocking inventories is low, it becomes easier and cheaper to order more inventory when needed, meaning that businesses may be more inclined to carry lower inventory levels. These factors can lead to optimal inventory levels that are lower than they would be under different circumstances.

Optimal Inventory Levels Are Lower When Carrying Costs Are High,and