Most firms must decide what fraction of an asset to
A)sell in bulk and what fraction of the asset to discard.
B)save for the spot market and what fraction of the asset to discard.
C)save for emergencies and what fraction of the asset to rework.
D)sell in bulk and what fraction of the asset to save for the spot market.

Question

Quizplus · Accepted Answer

Most firms face the decision of how much of an asset to sell in bulk for a guaranteed but possibly lower price, and how much to hold back to sell on the spot market, where prices can fluctuate and potentially offer higher returns. This strategy allows firms to balance between securing immediate revenue and speculating for higher profits.

Most Firms Must Decide What Fraction of an Asset to