. (10 points) A steel rolling mill can produce I-beams at the rate of 60,000 tons per year. Annual customer demand for the beams is 30,000. For each production run of I-beams, the mill must go through a setup that costs $20,000. I-beams cost the mill $3000 per ton, and the mill has an annual holding cost of 20%. a. What is the optimal production batch size for I-beams

this is all on your opinion. you choose what you want to do.

the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.