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Low-Calorie Frozen Microwavable Food Companies - Assignment Example

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In the paper “Low-Calorie Frozen Microwavable Food Companies” the author reviews some companies producing low-calorie frozen food products today. The leading companies in the low-calorie frozen microwavable food industry are the Lean Cuisine Company which is owned by Nestle and Healthy Choice…
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Low-Calorie Frozen Microwavable Food Companies
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Download file to see previous pages Hence, without any fear of contradiction, the firm was operating in a monopolistic market structure.
This can however still be illustrated from another perspective. First, from the model, cross elasticity of price is 0.17 showing that if a competitor raises its price by 1%, then the quantity demanded of the firm will increase subsequently by 17%. In a monopolistic competition, firms would rather compete in non-price competitions such as advertising and from the model, 1% increase expenditure in the advertisement will lead to a 21% increase in quantity demanded. Furthermore, equilibrium market conditions are determined by supply and demand equations which are the conditions of monopolistic market structures.
In the current world, many people are seeking healthy and cheaper lifestyles. This has been made it possible for many people due to the rise of incomes for the people that enable them to afford microwaves and the large variety of healthy frozen food products in the market. Low-calorie foods are foods that have an adequate amount of protein, a maximum of 600 milligrams of sodium and fiber that does not go below four grams. Most people prefer such meals that are cheap and healthy (Czech National Bank, 2004).
It is for this reason that there are so many companies producing low-calorie frozen food products today. The leading companies in the low-calorie frozen microwavable food industry are the Lean Cuisine Company which is owned by Nestle and Healthy Choice which is run by ConAgra Foods.
Products are bought in terms of volumes and frequencies, through the channels of distribution on which the product is anticipated to the audience after determining the market gap (Baron, 2000). The product, however, is more influenced by socio-economic factors influenced by the way of life of the consumer.  ...Download file to see next pagesRead More
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