The olde town microbrewery makes townside beer, which it bottles and sells in its adjoining restaurant and by the case. it costs $1700 to set up, brew, and bottle a batch of the beer. the annual cost to store the beer in inventory is $1.25 per bottle. the annual demand for the beer is 21,000 bottles and the brewery has the capacity to produce 30,000 bottles annually.

a. determine the optimal order quantity, total annual inventory cost, the number of production runs per year, and the maximum inventory level.

b. if the microbrewery has only enough storage space to hold a maximum of 2500 bottles of beer in inventory, how will that affect total inventory costs?

the answer to this question would be shared investment

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the answer is "b.the increased supply will create a surplus. "

the essential thought behind price controls is straightforward - utilize the power of law to modify the equilibrium of a market. for instance, the legislature may choose that the steel business needs to survive, and in this way pass a law to set a value floor on steel. this implies all steel sold must offer at or over the floor value, which must be set over the equilibrium cost for it to have any impact. the switch could likewise happen - the administration can choose that steel is excessively costly and set a value roof underneath its equilibrium value, with the goal that all steel must be sold at or beneath that ceiling.