in these industries? In this article‚ the bagel industry closely resembles a constant cost industry. A constant cost industry is a perfectly competitive industry that gives a horizontal long run industry supply curve. The slope for this supply curve is infinity. The expansion of the industry causes no change in the production cost. The entry of new firms‚ driven by an increase in demand doesn’t affect the long run average cost curve which can be seen in the article and will be discussed later on
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deals with: the behaviour of firms. the activities of individual units. economic aggregates. the behaviour of the electronics industry 3. a) b) c) d) Microeconomics is not concerned with the behaviour of: firms. aggregate demand. consumers. Industries 4. a) b) c) d) The study of inflation is part of: macroeconomics. normative economics. microeconomics. descriptive economics 5. a) b) c) d) Aggregate supply is the total amount: of goods and services produced in an economy. produced by the government
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marketing‚ and ultimately in its sales. Another key factor how it competes is through its relationships with customers such as Sears. Our cost model was based on the “Principles of Cost Modeling” from the article Competitive Cost-Analysis: Cost-Driver Framework by Timothy Laseter‚ et al. Based on the article‚ we continuously pondered over not only the cost elements‚ but also the cost drivers‚ so as to get a better picture and to arrive at a more accurate analysis. To capture all the elements‚ we constructed
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The two major players in the Australian soft drink industry‚ Schweppes and Coca-Cola Amatil (CCA)‚ have been competing for market share for some time‚ creating a ‘price-war’ between the firms. The article chosen for this Assignment‚ “Price Rises hit customers in the fizzy wars”‚ (Mitchell 2014) signals the end of this ‘price-war’ and details the following; Last year Schweppes implemented aggressive discounting in an attempt to increase its volumes‚ market share and boost sales of its new product;
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Reinventing Your Business Model The article “Reinventing Your Business Model” talks about the importance of adapting effective business model in shaping the success of the business. He talks about the success and failure stories of different businesses where the thin line between the success and failure of firm had been effective business model which fits with the business. Firms like Apple‚ Wal-Mart are able to generate large profits and even reshape the definition of business just by innovating
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A2 Markets & Market Systems Contestable Markets | | affect the behaviour of businesses in the market-place.What is a contestable market?William Baumol defined contestable markets as existing where “an entrant has access to all production techniques available to the incumbents‚ is not prohibited from wooing the incumbent’s customers‚ and entry decisions can be reversed without cost.” For a contestable market to exist there must be low barriers to entry and exit so that there is always the
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venture. RELEVANT INFORMATION: The article tells us the gas prices are expected to touch a high of $4. It also states that this high price has forced consumers to squeeze non-gas spending and even cut back on gas consumption. . ‘the hike at the pump is beginning to push drivers off the road’. So we have rising prices and declining consumption. This means lower expenditures by consumers that implies lower revenues for gas station owners. The article also mentions irregular supplies that can
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A "Mixed" Economy A "mixed" economy is a mix between socialism and capitalism. It is a hodgepodge of freedoms and regulations‚ constantly changing because of the lack of principles involved. A mixed-economy is a sign of intellectual chaos. It is the attempt to gain the advantages of freedom without government having to give up its power. Communism | A satellite photo of the Korean peninsula at night. Can you tell which half is Communist and which half is Capitalist? | Communism is a form
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Bibliography: Porter’s five forces- A model for industry analysis (1999) http://www.quickmba.com/strategy/porter.shtml (2010-12-03) IPod Market share http://www.macworld.com/article/140162/2009/04/appleearnings.html (2010-12-12) Microsoft Zune Market Share http://www.marketwatch.com/story/microsofts-zune-continues-to-struggle-2009-07-29 (2010-12-12)
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NATIONAL QUALIFICATIONS CURRICULUM SUPPORT Economics Microeconomics The Theories of the Firm [ADVANCED HIGHER] αβχ Acknowledgements This document is produced by Learning and Teaching Scotland as part of the National Qualifications support programme for Economics. First published 2002 Electronic version 2002 © Learning and Teaching Scotland 2002 This publication may be reproduced in whole or in part for educational purposes by educational establishments
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