Draw a diagram to illustrate xyz making economic losses

Reference no: EM133425853

Question: Assume that another Australian food delivery firm, XYZ, is a price-taker:

(a) Draw a diagram to illustrate XYZ making economic losses before Deliveroo's collapse.

(b) Now assuming that there are no changes to XYZ's costs of production, explain the impact of Deliveroo's exit from the food delivery market on the individual food delivery firm XYZ. With the aid of a new diagram, discuss XYZ's profit or loss situation after Deliveroo's exit from the market. (Note: Illustrate ONLY the end result AFTER the change occurred.)

(c) Following on from Q2 (b) above and assuming there are no changes to XYZ's costs of production, explain the impact on XYZ if food delivery services increase in popularity with consumers. With the aid of a new diagram, discuss XYZ's profit or loss situation following this change in consumer preferences.

Reference no: EM133425853

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