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प्रश्न
Why do producers gain in the short run during inflation?
उत्तर
- Inflation can benefit producers in the short run because it allows them to sell their goods and services at higher prices, although production costs may not grow at the same rate. This results in increased profit margins.
- In the short term, producers can benefit from higher pricing before the costs of raw materials, labour, and other inputs rise. Also, if demand stays strong, producers can continue to sell at high prices, increasing profits during the initial stages of inflation.
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संबंधित प्रश्न
Answer the following :
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Answer the following question in one or two sentences.
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Explain the impact of inflation on producers in the short run.
