We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Nobody downloaded yet

Efficient Opperation of the Potatoe chip Industry - Term Paper Example

Comments (0)
Summary
Efficient Operation of the Potato chip Industry Introduction In 2007 the potato chip industry was characterized as long run equilibrium and was competitively structured. The operating firms were earning normal profit while operating in the monopolistically market structure…
Download full paper
GRAB THE BEST PAPER
Efficient Opperation of the Potatoe chip Industry
Read TextPreview

Extract of sample
Efficient Opperation of the Potatoe chip Industry

Download file to see previous pages... Economists have put forwarded various structures of the market with different characteristics. The most fundamental of the market structure is perfect competition in which the product is homogeneous and there is absence of barriers to entry for the suppliers. The benefits to the stakeholders A firm operating in the monopoly market structure can produce at a much lower than the firm operating in perfect competition. In the monopoly situation the firm can enjoy the economies of scale while in perfect competition the firms share in total output. The monopoly is the only supplier of the good. In order to achieve higher levels of profit the monopolists have the potential to set the prices at higher levels (The Ohio State University, 2010). Because of the constraint of the demand curve they cannot charge the price that are considered fit for the manufactured product. If the price is set at the level that is considered unaffordable for the consumers the demand conditions will contract and will lead to loss of revenue for the firm. The existence of long run profits will serve as the incentive for investors to invest more on research and development. The investment will contribute to offer better products to the consumers. The investment can also contribute in lowering the cost of production and eventually the monopolist can use the return on the initial cost of capital. The capability to utilize consumers would come from the high ranged prices charged upon them. In the monopoly structure a firm can gain abnormal profits both in the short as well as in the long run and the average cost of the firm is lower than that of the average proceeds. Such a strategy will put off the potential firms put of the industry as the monopolists are aware that they will not be able to produce at such low cost in presence of competition. The benefit of low cost accrues to the consumers and therefore the welfare of the consumers is also affected (Case, Fair, and Oster, 2009). In the monopolistic market structure the firms are able to sell similar but not identical products. The products can be differentiated. In the market of potato chips the sellers can enter freely into the market. Each bag of potato chips is characterized by different genre and name. Therefore the considerations for each supplier are different. According to economics a monopoly produces a product which has no close substitutes and significant barriers of entry are present to allow new firms enter into the market. By purchasing the firms the lawyers paved the way for pure monopoly situation. It will allow the two firms to control the market. By seizing the market control the firms will now operate on the market demand curve. They now have the potential to control the output control and price. The only limitation for the firms will be the cost of production. In monopoly market there is hardly any difference between firm and industry. The price discrimination will have effects on the consumers and the suppliers. In monopoly market the Wonk potato chip firm has created a monopoly market where potential competitors cannot enter. In the new market the prices will tend to rise as there is lack of competition and the level of output will either be at the stable level or will decrease. The monopolistic industry will try to keep the industry closed as entry of new firms will lead to reduction of price and the rise in costs of production. The higher price will lead to loss of consumer surplus. The choices of ...Download file to see next pagesRead More
Comments (0)
Click to create a comment or rate a document
CHECK THESE SAMPLES - THEY ALSO FIT YOUR TOPIC
Industry Analysis
Industry Analysis: Toyota’s Position in the Automobile Industry.An industry consists of a number of firms which produces goods that are close substitutes for each other. The structure of the automobile industry is that of an oligopoly with a few firms showing dominance.
9 Pages(2250 words)Term Paper
County govrment: a guide to efficient and accountable government
The Power of governance of county is taken from state laws and hence it is answerable and accountable to the state government. However, the county government does possess some autonomy of local powers and is finally responsible to the citizens of the locality.
5 Pages(1250 words)Term Paper
The potato chip industry
When the two lawyers bought up the entire potato industry, they were able to establish a favorable playing ground suitable for them to choose the best course of action. By hiring a management firm to guide in the best course of action, the owners are aiming at ensuring that the business maximizes its profits and that their concealed purchase of the potato industry does not affect the company negatively.
4 Pages(1000 words)Essay
Computer Industry
It has been applied across multiple domain areas and with substantial results. This industry is worth billions of shillings and has been used to solve most of the day to day problems in the society. The industry produces an end product which is a program that will run in the computers or other digital devices.
3 Pages(750 words)Term Paper
The Potato Chip Industry
eller in the market is known as the monopolist who is known to be the price maker enjoying complete control over the process of supplying commodities to the market (Armentano, 1978). The case which is being concentrated in this research paper is of the potato chips company
6 Pages(1500 words)Term Paper
Should Cars Be More Efficient
Consequently, the consumption of automobiles is increasing globally to a large extent, which again deliberates the increasing demand for fuels, especially the non-renewable natural resources. In the current state of the global market, the prices of fuel are highly unsteady at an increasing rate.
8 Pages(2000 words)Term Paper
Potato Chip Industry
The perfect economy offers choices that are price-influenced. Question 1. The monopoly market structure is defined as a business environment where the industry and the sole entity are one and the same. In the 2008 Northwest’s monopoly style potato chip industry, there is no substitute for the lone Wongs potato chip products sold in the potato chip market segment.
5 Pages(1250 words)Essay
Does a government imposed price control provide an efficient market
A good example is observed when the government implements rent controls and regulation of gasoline prices (Adams, 35-73). On condition that the price ceiling is set below the equilibrium, the
3 Pages(750 words)Term Paper
Custom Chip, Inc
As a result, a conflict occurs between the departments making the department leaders to feel as if other departments interfere with their
1 Pages(250 words)Article
Industry paper
Some of the attributes include: sweat absorbent, to ensure that one is comfortable enough in the duration of their game or sports activity. Flexibility of the product, this allows the player to make easy and fluid movements during their games. Finally, customers
4 Pages(1000 words)Term Paper
Let us find you another Term Paper on topic Efficient Opperation of the Potatoe chip Industry for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us