Firms that choose to use a fixed-price policy:


A.
Will tend to experience larger inventory changes than firms that follow a flexible-price policy

B.
Will tend to experience smaller inventory changes than firms that follow a flexible-price policy

C.
Find that their inventories do not respond to demand shocks

D.
Will not hold inventories


A.
Will tend to experience larger inventory changes than firms that follow a flexible-price policy

Economics

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