Nobody downloaded yet

Economics for Business - Essay Example

Comments (0) Cite this document
Summary
This is likely to affect the demand for the Virgin Media services adversely. Its likely that the demand is likely to go low this is because its customers will not get some of its services and it has no plans to compensate for the loss of channels. This has impact on 3.3 million subscribers who get cable television from Virgin Media…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER94.8% of users find it useful
Economics for Business
Read TextPreview

Extract of sample "Economics for Business"

Download file to see previous pages Non economists believe in the existence of giffen goods which have an up-ward sloping curve, Veblen goods are the ones whose demand decreases with decrease in the prices and the inferior goods demand decreases with increase in income. Depending on where the VM products lie, this will determine the likely shift on demand. Loyal consumers of VM products will have the services delivered on demand.
Demand is the economic want backed up by purchasing power, demand curve represents the amount of a good that buyers are willing to purchase at various prices assuming all other non price factors remain constant i.e. at ceteris paribus. In a free market, quantity demanded and quantity supplied depends on the market price. In our case the decrease in demand is likely because shifts in the demand curve towards the left.1 In our case of VM the demand of the services will be affected by the non price factor. For the consumers to continue demanding its services, they have to improve their terms with them. As the VM claims that the SkyB is coerce with its customers, meaning that they are competing firms and therefore it's a substitute for the VM consumers.
To mitigate these consequences of the likely decrease in demand, it can lower the prices for the customers who demand for their services and this is likely to increase its demand against that of its competitors if there is free market a d therefore has a bigger market share. It can also improve the quality of its services that it delivers to its customers; this is because the demand of a normal good is likely to increase with its increase in its quality. VM can also promote isits products through public awareness, this can be done through advertising, sales promotion, offering free services at certain time, and it can also use road shows. 2
Question two
Market is a group of buyers and sellers exchanging goods that are likely substitutable for one another. Markets are defined by the demand conditions that exist; they embody the zone of consumer's choice for the goods or services. Markets exists in two dimensions-
a. Product type
b. Geographical area
Market structure refers to the selected number of organizational characteristic of the market that establishes the relationship between buyers and sellers of a certain product; market structure analysis is therefore the study of organizational features of market that is believed to have significance for conduct behavior and performance of firms comprising the market. In simple theoretical analysis, the concept of market was traditionally defined as consisting of buyers and sellers of a homogenous good who have insufficiently close contact with each other that o single price prevails
The major market structures are:
Perfect competition: This is where the market has very many firms producing homogenous product.
Monopolistic competition: This is also called competitive market, this is where there are very many firms and each commands a small share of the market share.]
Oligopoly: This is where the market is dominated by many small firms which own more than 40% 0f the market share.
Oligopsony: This is where the market is dominated by a few buyers with many sellers
Monopoly: This is where there is only one provider of a certain product.
Natural monopoly: This is a monopoly in which economies of scale cause efficiency to increase as the firm ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Economics for Business Essay Example | Topics and Well Written Essays - 1500 words - 1”, n.d.)
Economics for Business Essay Example | Topics and Well Written Essays - 1500 words - 1. Retrieved from https://studentshare.org/miscellaneous/1529523-economics-for-business
(Economics for Business Essay Example | Topics and Well Written Essays - 1500 Words - 1)
Economics for Business Essay Example | Topics and Well Written Essays - 1500 Words - 1. https://studentshare.org/miscellaneous/1529523-economics-for-business.
“Economics for Business Essay Example | Topics and Well Written Essays - 1500 Words - 1”, n.d. https://studentshare.org/miscellaneous/1529523-economics-for-business.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Economics for Business

ECONOMICS FOR BUSINESS

...with the already existing firms. The government has removed the rigid regulations which used to control the market movements and has left the flow of the market been regulated by the demand and supply forces. The deregulations included the floatation of the dollar plus the removal of the control of RBA on the banks. These deregulations extended to the transport and telecommunication industries. This led to greater efficiency and productivity in these sectors, which was reflected in the whole economy. These were highlighted in the national economic reform policy which dated back to 1995. The government set up policies to ensure corporatisation and privatisation. This has brought about structural changes in the government...
10 Pages(2500 words)Coursework

ECONOMICS FOR BUSINESS

...was that the start of a double dipping recession. Really it was a shock to the millions of the entrepreneurs as well as the American citizens in general, since this was the worst scenario that they had ever predicted or they ever wanted to happen. (www.bothsidesofthetable.com) The American government along with the Federal Reserve remained a mute spectator to the entire happenings, since they were also quite helpless and did the maximum that they could to save the entire US economy. But the US economy was sinking constantly and the Obama regime could do nothing to protect the consumer’s interests or the business investors. Indeed billions of dollars that were invested by the entrepreneurs and the investors went up for...
8 Pages(2000 words)Essay

Economics for Business

...?ECONOMICS FOR BUSINESS 1 Micro- economic environment is important for business organizations for it advocates adoption of various means to reduce problems related to scarcity. Micro- economic environment is also helpful for predicting future effects of business, implementation of policies related to price, wage, labor, controls on income and expenditure and regulations related to market competition. Relative scarcity is the chief concern of micro- economic environment. Through it, the business organizations could easily understand the level of interdependence the independent components have in between...
6 Pages(1500 words)Assignment

Economics for Business: Tesco

...Running Header: Economics for Business: Tesco Page Tesco Business Strategy APA style 10 April 2006 Introduction Economics is a social science whose concepts can be readily applied to any business organization. In fact, it is irrefutable that the operation of business entities is being strongly governed by the different economic principles, such as the law of supply and demand and concepts such as elasticity. These laws and concepts which can be used to look at the internal operations of the firm are contained in a field called microeconomics. Meanwhile, the dependency of businesses in the overall...
6 Pages(1500 words)Essay

Economics for business

...Economic Order”. Published in 2003. Pg 369-370. Rattner, Steven. “The Credit Crunch and the U.S. Economy”. March 27, 2008. http://www.lse.ac.uk/collections/LSEPublicLecturesAndEvents/pdf/20080327_RattnerSlides.pdf [viewed on 23 April, 2009] Barnes, Ryan. “The Fuel that Fed the Subprime Meltdown”. Investopedia.com. http://www.investopedia.com/articles/07/subprime-overview.asp [viewed on 23 April, 2009] Karmakar, Suparna. “US policies and the housing bubble”. The Hindu Business Line. March 27, 2009. http://www.thehindubusinessline.com/2009/03/27/stories/2009032750740900.htm [viewed on 23 April, 2009] EconomyWatch.com. “US Subprime Mortgage Crisis”. http://www.economywatch.com/us-subprime/crisis.html ...
6 Pages(1500 words)Essay

Economics for Business Assignment

...for operating in the industry. 2) The Australian Competition and Consumer Commission is the competition regulator of Australia. The ACCC promotes competition and fair trade in the Australian marketplace to benefit consumers, business and the community ( ACCC, 2011). In the year 2007, the ACCC undertook a detailed investigation in the Australian fuel industry to determine if there was ‘collusive oligopoly’ marked by price-fixing. The investigation found no “obvious” investigation of price-fixing, but it said that there were operational concerns because of the oligopolistic nature of the industry (ACCC, 2011). The ACCC opposed the acquisition by Caltex on the ground that it would substantially lessen competition across a...
3 Pages(750 words)Essay

ECONOMICS FOR BUSINESS DECISIONS

... will be in our favor (James Brickley, Clifford Smith, Jerold Zimmerman 9-8). But this condition is not symmetrical as here we have the plus point to increase our output given that we already know that our competitor is just going to manufacture 15 entities. References: 1. Hamilton, Booz. The e-Marketplace Revolution: Creating and Capturing the Value in B2B e-commerce. Booz-Allen and Hamilton Inc. Viewpoint. 04, 2001. Web. 26, 06, 2011. http://www.booz.com/media/file/76890.pdf. 2. James Brickley, Clifford Smith, Jerold Zimmerman. Managerial Economics and Organizational Architecture. USA: McGraw Hill, 2000. Print.... Choose a company that markets computer products over the Internet (for example, through a web search). In what ways does the...
3 Pages(750 words)Essay

Economics for business

...of the consumer but in a monopolistic market there are no substitutes available and the consumer has to accept what is being offered to them. Monopoly is considered inefficient due to the fact that the market doesn’t have any substitute of the product giving the producer or seller an authority to set prices according to their need. They usually discriminate regarding the prices and charge higher than the marginal cost of production in the market. Such market doesn’t focus on the consumers as they are aware that no matter what ultimately the consumers will choose their product even if the quality of the product is below the standards. In such market structure, the barriers to entry are high giving no or little entry positions to other...
8 Pages(2000 words)Essay

Economics for Business

...Introduction The current trends in UK car market suggest that sales are on the highest level from their 2007 level. There has been a surge of approximately 13% in the market during 2013 owing to cheap financing, growing confidence of consumers in the economy as well as better payment protection insurance deals. An estimated car registrations of 2.26 million vehicles took placed during 2013 in the country. The overall car market in the country is showing health signs of recovery and may be on its way to achieve the peak sales as the overall consumer confidence increases and economic situation further stabilizes. (Monaghan, 2014) Significant Features of the Pricing UK’s car market is the second largest market in Europe...
4 Pages(1000 words)Essay

Economics for Business 3

...Macroeconomic Variables Macroeconomic Variables Introduction Although economic growth, consumer involvement, inflation rates and overall financial situations differ from one country, region or organization to the other, macroeconomic variables remain constant. The variables influence the performance, structure and the decision-making of the economy as a whole. Macroeconomics dwells on indicators such as inflation, consumer price index, GDP, unemployment rates and income. These variables tend to affect the demand and supply of various organizations, Apple Inc. Being one of those organizations. Apple hence puts a lot of considerations into these variables in its quest to have a greater trading share in the ever growing and...
3 Pages(750 words)Essay
sponsored ads
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.

Let us find you another Essay on topic Economics for Business for FREE!

Contact Us