Question

IF TOO MANY FIRMS ARE SELLING TOO MANY PRODUCTS OF THE SAME TYPE, THE FIRMS WILL BE UNABLE TO SELL ALL THEIR PRODUCTS. THAT CAUSES AN INCREASE IN INVENTORY. IN ORDER TO SELL THE REMAINING INVENTORY AND RECOVER SOME OF THE MONEY INVESTED, THE FOIRMS WILL HAVE TO?

Answer 1

Step-by-step explanation:

The firm will have to decrease product prices and carryout promotional sales to reduce their stock and to recover some of their invested capital.