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Simple Inventory Model
Firstly, the product level initiates a demand, which generates a demand at the component level and then in turn at the raw material level. Think of an amplifier for an audio system. Firstly, the finished product. This is disassembled into its major components and in turn the major components are constructed from raw materials.
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what does it mean by a normal good ?
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Production without capital is hard for us even to imagine. Nature cannot furnish goods and materials to man unless he has the tools and machinery for mining farming forestry fishin
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