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Why do firms try to sell more products or to sell them at a higher prices?
It is known as 'marketing' and 'supply and demand' - which is basically what a customer is prepared to pay.
Why is added value important for business?
Added value allows firms to market their products more successfully, emphasising strength of brand as opposed to a commodity. They can charge higher prices, achieve a USP and obtain competitive advantage. Higher added value products are less price-elastic and harder to copy
What is the relationship between the number of firms and influence over price?
The relationship between the number of firms in a market and their influence over price is inversely proportional. In perfectly competitive markets, a larger number of firms leads to greater competition, which typically drives prices down as firms cannot set prices above market equilibrium. Conversely, in markets with fewer firms or monopolies, firms have more power to influence or set prices, often leading to higher prices for consumers. Thus, as the number of firms increases, their individual influence over pricing diminishes.
What manifests oligopoly situation?
An oligopoly situation manifests when a market is dominated by a small number of firms, leading to limited competition. These firms often produce similar or identical products, which allows them to influence prices and market conditions collectively. Characteristics of oligopoly include interdependence among firms, barriers to entry for new competitors, and the potential for collusion to maximize profits. This market structure can result in higher prices and reduced consumer choice compared to more competitive markets.
Why is demand greater than marginal revenue for all imperfectly competitive firms?
In imperfectly competitive markets, firms have some control over the prices they charge. Demand is greater than marginal revenue for these firms because they must lower prices to sell more products, which reduces the revenue they earn on each additional unit sold. This is because they face downward-sloping demand curves, meaning they have to lower prices to attract more customers.
Why do firms try to sell more products or to sell them at a higher prices?
It is known as 'marketing' and 'supply and demand' - which is basically what a customer is prepared to pay.
Why do firms try to sell more products or to sell them at a higher price?
so they can have a bigger profit margin
Why do firms try to sell more products or to sell them at higher price?
so they can have a bigger profit margin
Why is added value important for business?
Added value allows firms to market their products more successfully, emphasising strength of brand as opposed to a commodity. They can charge higher prices, achieve a USP and obtain competitive advantage. Higher added value products are less price-elastic and harder to copy
Why do firms try to sell more products or try to sell them at a higher price?
so they can have a bigger profit margin
Why is demand greater than marginal revenue for all imperfectly competitive firms?
In imperfectly competitive markets, firms have some control over the prices they charge. Demand is greater than marginal revenue for these firms because they must lower prices to sell more products, which reduces the revenue they earn on each additional unit sold. This is because they face downward-sloping demand curves, meaning they have to lower prices to attract more customers.
Contract and compare supply and demand?
supply ,higher prices, producers are willing to offer more products for sale than at lower prices.and the can increases the prices . and demand is was higher price for the companies.for the constomers
Why does supply curve slope upward?
The general law of diminishing returns partially accounts for the upward slope of supply curves for individual firms and for market supply curves. Additional production eventually becomes ever more costly as output levels grow. Thus, firms may require higher prices to justify expanding their outputs. Moreover, higher prices embody greater incentives for firms to produce more output because profit opportunities are enhanced. A similar logic applies for the economy as a whole.
Why supply curve slopes upward?
The general law of diminishing returns partially accounts for the upward slope of supply curves for individual firms and for market supply curves. Additional production eventually becomes ever more costly as output levels grow. Thus, firms may require higher prices to justify expanding their outputs. Moreover, higher prices embody greater incentives for firms to produce more output because profit opportunities are enhanced. A similar logic applies for the economy as a whole.
Do big countries get lower prices for products and smaller countries products cost more?
YES
Describe the law of supply and demand and explain how increases and decreases in supply and demand affect prices?
The higher the price the larger the quantity produced, as the price of a good raises existing firms will produce more to earn additional revenue.
When firms exit in a competitive market their exit will?
When firms exit a competitive market, their exit typically leads to a reduction in supply, which can increase the market price for the remaining firms. This adjustment may allow the surviving firms to become more profitable, as the decrease in competition can lead to higher prices for goods or services. Additionally, the exit of firms can signal to the remaining players that the market conditions may need to change, prompting them to innovate or improve efficiency. Overall, firm exits help restore equilibrium in the market.
