Buffer stocks often have been excessive-costly to maintain

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Reference no: EM13891903

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.

Reference no: EM13891903

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