a)
To describe: whether fisher would know that his or her price was too high.
a)
Answer to Problem 1RQ
If the stock remained unsold longer or if fisher considered it critical to his stock unnecessary, he would know that his prices were too high.
Explanation of Solution
The minimum inventory that should be available is the critical inventory. To operate an enterprise effectively is crucial to know this number, as inventory costs must be kept as low as possible and all sales are achieved. It is seen that too much is transported and excess stocks will eat the profits. Too little carry and one can't keep the sales up.Fisher would know that his prices were too high if his stock remained unsold longer or if he considered it critical to his stock unnecessary.
Introduction:
Critical stock: The display of critical stocks in interim storage areas enables you, within an acceptable period of time, to find movement of goods not fully processed. Every stock remaining for a long period in interim storage areas shall be considered critical.
b)
To describe: whether fisher would know that his or her price was too low.
b)
Answer to Problem 1RQ
Fisher would know that its price was too low if Fisher sells his stock in a very short amount of time.
Explanation of Solution
Short sales allow investors to profit when they are decreasing in value from stocks or other securities. To make a short sale, an investor must borrow from someone who owns the stock or security through their brokerage company.
If fisher sells his stock in a very short time, fisher would know that its price has been too low.
Introduction:
Short term investing: If people buy and sell in a short time, they are involved in short-term market investment. The short-soldier hopes that the price will decrease over time and that the stock will be bought back at a lower price than the original sales price.
c)
To describe: expectation of change in price by fishers.
c)
Answer to Problem 1RQ
As fishers run the risk of invasion, Prices are expected to drop with the progress of the day
Explanation of Solution
In the stock, there are always ups and downs. An inventory price that changes quickly and is "volatile" much more. This increases the risk of stocks.Prices are expected to drop with the progress of the day. Because fishers run the risk of invasion.
Introduction:
Critical stock: The display of critical stocks in interim storage areas enables you, within an acceptable period of time, to find movement of goods not fully processed.Every stock remaining for a long period in interim storage areas shall be considered critical.
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Chapter 9 Solutions
EBK INTERMEDIATE MICROECONOMICS AND ITS
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