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Concept of Stock Replenishment
This concept assumes that stock is always available whether there is demand or not. Consider the demand for constituent items, such as component parts or raw materials. By having stock of everything available all the time, we are in conflict with basic management objectives of low inventory (low cost) and high return on investment.
The term 'replenishment' means restoration to an original state of fullness.
Income and Substitution Effects A fall in price of a good has the two effects: Substitution & Income -Substitution Effect Consumers will tend to buy more of the good
if the inverse demand curve is p=120-Qand the marginal cost is const ant at 10 ,
short run equilibrium of the industry
The Money Creation Process is explained below: We can now study the money supply or the creation process. Suppose the government wishes to buy pencils worth Rs. 10 for the offi
ppc shows microeconomics
The Money Multiplier is explained below: If you see carefully, the money multiplier is nothing but an inverse of a reserve ratio. Therefore, we can write MM = 1/rr, where rr is
In year one, suppose the federal government has no national debt and spends $100 billion, while raising only $50 billion in taxes. The U.S. Treasury will issue $ billion of governm
price effect
RELATIONSHIP BETWEEN TFC ,TC ,TVC
"A firm in monopolistic competition maximizes its profit by producing where its price is equal to its marginal cost." Is this statement correct or incorrect? Explain.
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