Japanese firms are competitive because they want to make a profit. They typically do this by expanding outside of Japan.
B. interdependence: what one firm does in setting prices, determining production levels, investing in R&D, and so forth can significantly affect other firms competitive positions.
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
The short answer: entry of new firms and exit of old ones. If profits are positive, new firms will enter the industry, piling in until they compete away all these profits. If long-term profits are negative, firms will exit until the price rises enough so that the firms who stay in the market can break even.
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
A perfectly competitive market is a market that is classified by many firms, with homogeneous products, since there are so many firms and consumers (buyers and sellers) each is a price-taker, meaning they have no control over what the price is. firms as a result set price to the marginal cost, which is the marginal revenue which is also the wage.. If there are profits in the short run due to differences in capital, (in the short run, capital stock is fixed), ability of firms to produce at different quantities is apparent. However over the long run, firms are able to make all costs variable, meaning they can change their capital and labor stock in order to become more efficient. These changes result in higher efficiency, and an eventual drop in price where p=mr. There are no profits in long run.
B. interdependence: what one firm does in setting prices, determining production levels, investing in R&D, and so forth can significantly affect other firms competitive positions.
All firms do have the power to fix a price ,but insteadof doing so,in a competitive market situation firms fix a price which is equal to the average price charged by all firms in an industry,ie,it collects all the prices firms with same product and compute the average.
In perfectly competitive markets, economic profits are zero in the long run because firms are able to enter and exit the market. If firms in a perfectly competitive market are profitable, there would be an incentive for new firms to enter. Supply would increase, causing an increase in quantity and the price to be driven back down to equilibrium: NO PROFIT! If firms in a perfectly competitive market are suffering a loss, some firms would choose to exit the market. Supply would decrease, causing a decrease in quantity and the price to be driven back up to equilibrium: NO PROFIT!
The short answer: entry of new firms and exit of old ones. If profits are positive, new firms will enter the industry, piling in until they compete away all these profits. If long-term profits are negative, firms will exit until the price rises enough so that the firms who stay in the market can break even.
Because monopolistically competitive firms have an optimal production allocation at monopoly values: marginal revenue = marginal cost, marking-up to the demand function. When competition is not perfect, marginal revenue does not equal demand but is always below it on a Cartesian plane, so the optimal production value of a monopolistically competitive firm is both less and at a higher price than a perfectly competitive one.
Adversely, in two ways. As the old saying goes, if you borrow a thousand, you have a problem but if you borrow a million, the bank has a problem! So small firms, which typically will have smaller loan requirements are at the mercy of financial institutions. They may be less credit-worthy, have less collateral that larger firms and so may have to pay a greater premium for borrowing. Small firms are also more likely to have to wait longer before being paid by big firms. As a result, small firms are more likely to require overdraft facilities.
A perfectly competitive market is a market that is classified by many firms, with homogeneous products, since there are so many firms and consumers (buyers and sellers) each is a price-taker, meaning they have no control over what the price is. firms as a result set price to the marginal cost, which is the marginal revenue which is also the wage.. If there are profits in the short run due to differences in capital, (in the short run, capital stock is fixed), ability of firms to produce at different quantities is apparent. However over the long run, firms are able to make all costs variable, meaning they can change their capital and labor stock in order to become more efficient. These changes result in higher efficiency, and an eventual drop in price where p=mr. There are no profits in long run.
Japanese people commonly have straight black hair, almond-shaped eyes, and pale skin. They tend to have a relatively short average height compared to other populations.
I work at a dollar tree and once in awhile i tend to find a bunch of old japanese packs for a dollar so if theres a dollar tree anywhere in your area id check them out
Indian air fare is more expensive due to there being fewer airline options. With fewer airlines in operation the fares are not as competitive and tend to be pricey.
•To compete successfully British firms need low taxes and business rates so the running cost of the business is down so prices can be kept low, to invest in new technology and equipment to stay ahead of their competitors, low inflation so other business costs and prices can be kept down and a competitive exchange rate so the value of the pound is low so that British goods and services are cheap to foreign buyers.
If you have competition between two competing firms they both must offer good service or product with competitive price. Another way to increase sales in a competitive market it to add "features" that customers want, such as free shipping, extended warranties, improved reliability, and so forth, all of which will benefit at least some of the consumers. When the marginal costs for thousands of "extras" approaches zero, the markets are flooded with goods having "features" that either nobody wants or nobody is willing to pay for.