Effective Inventory Management Would Have One Person Place the Order

question 65

Multiple Choice

Effective inventory management would have one person place the order for new inventory,a second person check it against the purchase order when it arrives,and a third person record the receipt of inventory in the accounting records.The purpose of this system is

• A)to reduce spoilage.
• B)to reduce storage costs.
• C)to guard against stockouts.
• D)to guard against internal theft and collusion.

Identify conditions under which collusion among oligopolists is more likely.

Explain the differences in firm behavior and market outcomes between collusive and noncollusive oligopolies.

Understand the regulatory implications for oligopolies, particularly in terms of antitrust laws.

Identify the role and impact of advertising in oligopolistic industries.