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Assumptions about Perfectly Competitive Markets

Why are the c...

Question

Why are the chances of dead stock reduced in case of chain stores?

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Solution

In case of chain stores, the goods are transferred from the shop where they are not in demand, to some other shop where the demand is high. This reduces the chance of dead stock.

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packs of plates in stock in either sets of

8

12

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total plates in stock, then how many plates would a customer buy, if he buys all of the packs of

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that the store has in stock?

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