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Traditional inventory control based on the calculation of EOQ
At this point, it is worth considering some of the problems faced by companies using the simple inventory model to support the manufacture of assembled products, which we have already discussed.
These problems are particularly acute if demand is for customer-configured end-items.
Cyclical Fluctuations: Consider a situation where the value of money above trend indicates an unexpectedly high level of money in the recent past. The model predicts that this
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explain normal profits
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how can a price ceiling make consumers better-off? under what conditions might it make them worse off?
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