If a firm's sales turn out to be ________, inventories will be higher than expected, and there will be less production in the future.

Question

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If a firm's sales turn out to be less than expected, their inventories will be higher than expected as they have produced more than they have sold. This means there will be less production in the future as the firm works to sell the excess inventory first before producing new products.

If a Firm's Sales Turn Out to Be ________, Inventories