In the short run, demand may be very different from, and fall short of potential supply (production + inventories). Such mismatches can be addressed by producing less, lowering prices, advertising or perhaps other means. How do you decide which of these is best? Illustrate. This can be done during trial runs. It should be done no later than 5th round

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When faced with a situation where demand is significantly lower than potential supply in the short run businesses must react quickly to address the im... View the full answer