Javier is a department manager at a big box store. Over the last month, sales have slumped, and he has lots of inventory going unsold. Now it’s time to put in his orders to restock for next month. a. How, if at all, should Javier adjust his orders for new products? Javier should place his orders according to his initial estimates. The inventory buildup is not an equilibrium. Javier should respond by cutting back on his orders. Javier should wait and see what happens next month, and if his inventory runs out, then he can place an order. b. How will his suppliers respond to this decision? They will produce according to their initial demand estimates. They will cut back on production. They will not be affected. They will expand their output. c. Most other businesses are experiencing a similar decline in sales. Which
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Because the demand for wheat tends to be inelastic. true or false
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Adrawback of short-term contracting as an alternative to making a component in-house is thata. it is the most-integrated alternative to performing an activity so the principal company has no control over the agent. b. the supplying firm has no incentive to make any transaction-specific investments to increase performance or quality. c. it fails to allow a long planning period that individual market transactions provide. d. the buying firm cannot demand lower prices due to the lack of a competitive bidding process.
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Which of the following best explains the purpose of a strike? a. to pressure employers to increase the minimum wage. b. to make sure that producers don't make any profit. c. to get employers to submit to collective bargaining. d. to prevent employers from taking industrial action.
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Javier is a department manager at a big box store. Over the last month, sales have slumped, and he h...
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