Explain about inventory economies, Managerial Economics

Assignment Help:

Q. Explain about Inventory Economies?

Inventory Economies:Role of inventories is to aid the firm in meeting random changes in the output and the input sides of the operations of the firm. Purpose of inventories is to smooth out the supply of outputs and the supply ofinputs.

Inventories on spare parts, raw materials and finished products increase with the scale of production though they don't increase proportionately with the increase in size of output. Hence as the size of output amplifies the firm can hold smaller percentage of inventories to meet random changes.


Related Discussions:- Explain about inventory economies

Price rise in future must not be expected - law of demand, Price rise in fu...

Price rise in future must not be expected - law of demand If the buyers of a commodity expect that its price will increase in future they raise its demand in response to an in

Income elasticity of different consumer goods, Income Elasticity of differe...

Income Elasticity of different consumer goods Commodities Coefficient of income elasticity Impact on expenditure Necessities

Market price , Normal 0 false false false EN-IN X-NON...

Normal 0 false false false EN-IN X-NONE X-NONE

Calculate the marginal product of labor, The production function of a small...

The production function of a small shop that frames pictures is Q = 5 √ LK where Q is the number of pictures framed per day, L is labor hours and K is the machine hours.

Maximizing profit in firm, how does knowledge of economics help in maximizi...

how does knowledge of economics help in maximizing profit in firm

Consumer welfare, '' monopoly is good for consumer welfare" is this crrect

'' monopoly is good for consumer welfare" is this crrect

Types of market structures by the nature of competition, Q. Types of Market...

Q. Types of Market Structures by the Nature of Competition? Conventionally, the nature of competition is assayed to be the basic criterion for distinguishing different types of

Explain about the terms in perfect competition, Explain about the terms in ...

Explain about the terms in perfect competition. Perfect Competition: a. A price-taking producer is a maker whose actions have no consequence onto the market price of the g

To what extent has the imf achieved its objectives?, To what extent has the...

To what extent has the IMF achieved its objectives? The objective of achieving full convertibility of currencies has not been achieved.  In the first place countries impose re

Explain the leibenstein model, Q. Explain the Leibenstein model? Leiben...

Q. Explain the Leibenstein model? Leibenstein (1966) sees a firm's norms or conventions, dependent on its history of management initiatives, labour relations and other  factors

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd