-In the above figure, at point d firms would find themselves with inventories their target level and so would ____________production.
A) increasing above; increase
B) increasing above; decrease
C) decreasing below; decrease
D) decreasing below; increase

Question

-In the above figure, at point d firms would find themselves with inventories their target level and so would ____________production.
A) increasing above; increase 
B) increasing above; decrease 
C) decreasing below; decrease 
D) decreasing below; increase

Quizplus · Accepted Answer

When inventories are above the target level, firms typically decrease production to bring inventory levels back to the desired target.

-In the Above Figure, at Point D Firms Would Find