User Account

All Pages

Why do you think a highly competitive industry

Assignment Help Microeconomics
Reference no: EM132414841

If an example of a highly competitive industry like potato market is taken, there are numerous sellers and buyers in the market due to which neither customers nor the sellers have the power to influence the price of potatoes. Since potatoes sold by every seller are homogeneous, therefore, the seller cannot raise the price of potatoes to earn more profit. In this market, there is no barrier to exit and enter because of which the existing firm earns normal profit. Hence, in a highly competitive industry there is no scope of earning higher profit. Thus, it is not an attractive industry.

Examine a highly competitive industry (airlines, video games, fast food, soft drinks, your own field, etc.) using the Five Forces .

  • low buyer power,
  • low supplier power,
  • low threat of entry (high barriers to entry),
  • low threat from substitutes and
  • low levels of rivalry between existing firms.

Why do you think a highly competitive industry is not a attractive industry?

Reference no: EM132414841

Questions Cloud

Quantities and prices in the stackelberg equilibrium : The demand function is given by p = 100 - 2 yL - 2 yF. Calculate quantities and prices in the Stackelberg equilibrium.
What skill will the child learn : Go to a store that has a toy section. Look at the toys, making note of how they are arranged. Are they gendered, directed at both sexes, male, or females?
Calculate equilibrium prices-calculate equilibrium profits : In this model, is there a first mover advantage or a second mover advantage? Why?
Social networking and data protection and security : Discuss ways that the IT organization can counter negative impacts of social networking. Data Protection and Security
Why do you think a highly competitive industry : Why do you think a highly competitive industry is not a attractive industry?
Reluctant to shut down mines because of the expense : An article suggests that mine owners are reluctant to shut down mines because of the expense, and that mines continue to operate even though "mines
Determining the two inputs of production : Canadian Hammerwoks is a firm that uses two inputs of production: hours of labor, denoted with the variable x1, and hours of machine operation
Write down the normal form of the game : Write down the normal form of the game. Make sure to include the players, actions and payoffs.
Zero fixed costs and constant marginal costs : The two firms which compete in the market have zero fixed costs and constant marginal costs MC1 = 0, MC2 = 12.

Reviews

Write a Review

Microeconomics Questions & Answers

  Explain how globalization affects the gross domestic product

Identify 4 threats caused by globalization. Explain how globalization affects the gross domestic product (GDP).Explain your thoughts on globalization in your own words (e.g., is it bad or good Why or why not Does it affect all countries).

  Combining earnings and government support

Susan is a single mother with three children. She can earn $8 per hour and works up to 2,000 hours per year. However, if she does not earn any income at all

  What would you estimate a CEOs salary

Using the results of your regression, what would you estimate a CEO's salary to be if their company made $3499.80 thousand in profits last year

  How did organizations challenges accomplish its achievements

Including any stories of the organization's challenges or achievements. How did it overcome the challenges? How did it accomplish its achievements?

  How does that affect quantity supplied of desktop computers

Let's see if the forces of the market can be as efficient as a benevolent dictator. Since laptop computers are increasingly easy to build.

  Evaluate the change in costs over the period in real terms

Suppose industry abatement costs rise from $850 million in 2011 to $1,000 million in 2012 in nom- inal terms and that the CPI is 100 in 2011 and 106 in 2012. Evaluate the change in costs over the period in real terms, first in 2011 dollars and th..

  Define the productivity of the contemporary economy

In the early twentieth century, photos or drawings of big factories with tall stacks belching smoke were popularly used to represent the productivity.

  Write the household''s budget equation

Assume a household with a monthly income of $5,000. This household allocates its income to the purchasing of food and nonfood products. If the average price of food products is $20 per unit and nonfood items cost $150 per unit- Write the hous..

  Explain direct impact to the economy

Determine what fiscal policy measure has a more direct impact to the economy, an increase in government spending or an equal decrease in taxes if consumer confidence is lower than the previous month.

  The two major components of the interest rate

The two major components of the interest rate that cause rates to vary across different investment opportunities or loans are:

  How do the dividends affect the income statement

How do the dividends affect the income statement? Why is the company using the accrual basis of accounting rather the cash basis?

  Which curve represents the greater level of potential output

Suppose a diagram has two PPF curves. Relative to the origin, Curve A is above Curve B. Which curve represents the greater level of potential output

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd