Buffer stocks often have been excessive-costly to maintain
Course:- Business Economics
Reference No.:- EM13891903

Assignment Help
Assignment Help >> Business Economics

Buffer stocks often have been excessive and costly to maintain because:

a. target prices have exceeded equilibrium levels

b. target prices have been set lower than equilibrium levels

c. demand has grown faster than anticipated

d. managers get paid more for keeping large inventories

Please provide with correct choice and explain your answer.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Business Economics) Materials
A market with demand Q = 10 - p is supplied by a monopoly with costs C(Q) = 6 + 2Q. Calculate the equilibrium price, output, and monopoly profits. What would be the equilibriu
How do managed floating exchange rates operate Why were they adopted by the industrialized nations in 1973 Has the abandonment of the Bretton Woods system of adjustable pegg
What is the solution of the Solow model for consumption per person in the steady state, c ∗ = C ∗/L∗ ? How does each parameter in the solution affect c ∗ , and why?
A friend tells you that you should never be a patient in a teaching hospital because the death rate among patients in teaching hospitals is higher than in other hospitals. Int
A town’s recreation department is trying to decide how to use a piece of land. One option is to put up basketball courts with an expected life of eight years. Another is to in
The flat-screen plasma TVs are selling extremely well.  The originators of this technology are earning higher profits. What theory of profit best reflects the preformance of t
When government spending increases by $1, planned expenditures increases by $1 and the equilibrium level of income will increase by $1. When taxes are cut by $1, planned expen
Why is a "buy one get one free deal" an example of price discrimination while an ice cream parlor charging a higher price for ice cream than sherbert not an example of price d