This is because increase in cost of production will result to increase in price of bicycle and due to effects of forces of demand and supply, high price will lower demand.
4. a). The market quantity equilibrium will shift to the…
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This will make the suppliers hoard the goods in anticipation for higher prices hence decrease in supply. Consequently, customers will demand more and eventually lead to further increase in prices.
c). total revenue = price *quantity. When P=$10, the total revenue is 10*500=$5000. When price increases to $20, total revenue is P*Q= 20*300=$6000. This shows that the increase in price by $10 increase total revenue by ($6000-$5000). This is an increase of $1000 revenue.
6.0 When the demand for labor is inelastic, the rate of unemployment increases. For example, if labor demanded is 300 and skilled workers are 600, 300 people will remain unemployed. As more people gains skills, demand does not change hence more people remain jobless.
d) The optimal number of workers to be hired is five. Marginal cost of any additional worker should not exceed his/her marginal revenue. Hiring sixth person will cost more than the revenue he or she can generate.
10. For the business to continue its operation, it should be able to break even. At this point, total revenue (TR) = total cost (TC). However, at break even the business should be able to cover all its variable cost from the revenue. For 3 months, revenue is $4000, while variable cost is ($12000-$6000) = $6000. Therefore, it should close down since it is not able to generate enough revenue to cover fixed
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Pepper, Mott’s, and Snapple among others. It has 200 distribution centers and 24 manufacturing centers across the United States (Fuhman, 2010). It is facing a market where the demand has been experiencing indifferent growth because customers are shifting toward healthy energy drinks, sports drink, and cheap drinks such as tap or bottled water (Ashurst, 2005).
A Monopoly or Monopolies have been determined as one of the main types or causes of market failure, the term not suggesting death or cessation of the market but rather aligned with the definition of a monopoly. A monopoly is defined as: “exclusive control of a commodity or service in a particular market, or a control that makes possible the manipulation of prices.” (Dictionary.com Unabrdiged v 1.1) In dealing with microeconomics, we must be cognizant of the real world nature of this subject area as well as the simplicity of its underlying structure, whilst the monopoly, and different types of competitive behaviors, form part of the industrial organization of the broader microeconomic fie
Paderno’s competition analysis To begin with, Ian described competition analysis as the evaluation of the strengths and weaknesses of current and potential competitors (13). Fleisher and Bensoussan added that the findings from the competition analysis are usually usefull in the designing a defensive and offensive business strategy that could aid in identifying threats that exist as well as the viable opportunities within the market (28-31).
Students who perform better academically and enter the honours list often receive accolade and become the ones more likely to be recruited by more renowned universities and get higher paying jobs. Schools themselves participate in the process of competition as proven by a former dean of Harvard, Henry Rosovsky when he stated that "active recruitment and competition for students" make American universities unparalleled worldwide (qtd.
r lower prices to HMOs have a competitive advantage. The study attempted to add to the literature that contradicts Porter's theory that firms rarely achieve competitive advantage by applying both price and differentiation strategies.
To measure the market share of hospitals, the dependent variables are (1) HMO revenue and (2) HMO admissions.
Most of the company’s operation is carried out in China where it produces a variety of products to be used both domestically and commercially (Ivey, 2010p.2). Canadian Solar incorporation is headed by Dr. Qu assisted by other six top management officials (Ivey,
Porter’s first force considers competitive rivalry. Players in the railroad industry enjoy dominance in the market as they remain relatively few. However, the competitive force in the transportation industry created by alternative transportation systems such as water and
Further, this growth would arise from the steady increase in consumers’ purchasing power, especially in developing countries. The changes in consumer preferences globally also have a direct influence on the sales figures of beverages.
The researcher of the given essay explains whether the allocative and productivity efficiency can be achieved in both markets (perfect competition and monopoly). In the light of these, market structure is defined as a framework in which a firm chooses to enter the market.
8 Pages(2000 words)Essay
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