Suppose that Dell Corporation has 20,000 computersin its warehouses on December 31, 2019, ready tobe shipped to merchants (each computer is valued at$500). By December 31, 2020, Dell Corporation has25,000 computers ready to be shipped, each valuedat $450.a. Calculate Dell’s inventory on December 31, 2019.b. Calculate Dell’s inventory investment in 2020.c. What happens to inventory spending during theearly stages of an economic recession?

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Suppose that Dell Corporation has 20,000 computers
in its warehouses on December 31, 2019, ready to
be shipped to merchants (each computer is valued at
$500). By December 31, 2020, Dell Corporation has
25,000 computers ready to be shipped, each valued
at $450.
a. Calculate Dell’s inventory on December 31, 2019.
b. Calculate Dell’s inventory investment in 2020.
c. What happens to inventory spending during the
early stages of an economic recession?

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