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If a company were to ignore the fact that the market value of its inventory is lower than its cost then_______.

1 Answer

4 votes

Final answer:

In the goods market, sellers may be willing to sell for less than the equilibrium price if the market value of their inventory is lower than its cost.

Step-by-step explanation:

The statement is false because in the goods market, sellers may be willing to sell for less than the equilibrium price for various reasons. One reason is that the market value of their inventory is lower than its cost. This could occur due to factors such as changes in demand and supply, leading to a decrease in the market price. For example, if a company has excess supply of certain goods and the market price drops below their cost of production, they may choose to sell for less than the equilibrium price to clear their inventory and minimize losses.

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User Boydenhartog
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