Remote rural area with no competition nearby

Assignment Help Business Economics

Reference no: EM131101606

For years, you were the owner/operator of a small gift shop in a remote rural area with no competition nearby. As such you were making above average profits every year. Consequently, new competitors were attracted to your market and eventually you found yourself surrounded by many competitors. Compare the original situation with the new one. State what are the differences between the two situations.

Reference no: EM131101606

Questions Cloud

Prevent the equilibrium federal funds rate : If the Federal Reserve needed to prevent the equilibrium federal funds rate from rising too high during a recovery, it could a. lower the Discount rate. b. raise the Discount rate. c. lower the interest rate paid on reserves. d. increase the interest..

Government policy for dealing with natural monopoly : One government policy for dealing with a natural monopoly is to:

Apple and samsung are competing in duopoly : Apple and Samsung are competing in a duopoly. If both companies charge a high price, they each earn $900 million in economic profit. If both companies charge a low price, they each earn $500 million in economic profit. Construct a payoff matrix displ..

What is the calculated t value : The management of the Delphi Corp. is considering a new method of assembling a carburetor assembly for racing cars. The present method requires an average of 24.0 minutes to assemble a carburetor. What is the calculated t value? What is your statisti..

Remote rural area with no competition nearby : For years, you were the owner/operator of a small gift shop in a remote rural area with no competition nearby. As such you were making above average profits every year. Consequently, new competitors were attracted to your market and eventually you fo..

Carving up the market and price fixing : Few years ago, the European Commission accused three major European breweries, Heineken, Grolsch, and Bavaria, of “carving up the market,” and “price fixing” and imposed a fine of 274 Euros on them. Explain what kind of market structure give rise to ..

Fees for any given institution of higher education : The tuition's and fees for any given institution of higher education are theoretically the same for all attending students. Colleges and universities, however, routinely charge different tuitions and fees to different students. These differences show..

Suppose housing and air quality-what is new utility level : Suppose housing (H) and air quality (A) are the only two things entering into Aaron's utility and the utility function is U(H, A) = A ∗ H. Suppose Aaron's income is $10 and the price of housing is $2. (a) Air quality is a non-excludable, public good ..

Without government intervention : Without government intervention, it is ___________ true that ___________ in equilibrium. Aalways; private marginal benefit equals private marginal cost

User Account

All Pages