Inventory Costs?

• $1.5 billion @ 10% = 150 m

• Exhaustible resources

• Hotelling’s Rule

  • Competition
  • Monopoly
    • Expansion in supply
    • Change in interest/discount rates
    • Russia with high discount rates
    1949--81 CSO list price doubled (2.2% real return)

Previous slide

Next slide

Back to first slide

View graphic version