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Are there Homogeneous products in a perfect market?
Yes, homogeneous products are a key characteristic of a perfect market. In such a market, all firms produce identical products that are indistinguishable from one another, leading to consumers making purchasing decisions based solely on price. This uniformity ensures that no single firm can influence the market price, as buyers perceive all products as equivalent, promoting perfect competition.
What are the main characterstics of a global firm?
Main characteristics of a global firm include having operations in multiple countries, a diverse workforce reflecting different cultures, adapting products/services to different markets, a strong international supply chain, and being responsive to global economic conditions and trends.
How can positively and negatively exchange rates can affect a firms global sales?
A change in exchange rates might affect a business in the following ways: -Exchange rates changes can increase or lower the price of a product sold abroad -The price of imported raw materials may change -The price of competitors' products may change in the home market For more info go to http://capguns.org
What is firm equilibrium?
Firm equilibrium refers to a situation where a firm achieves a balance between its costs and revenues, maximizing profits. This is attained when the firm produces the level of output where marginal cost equals marginal revenue. It represents the point of optimization for the firm.
Can a dominant firm wait out the attack of an underdog?
Usually yes... a dominant firm normally has the financial 'clout' to ride out a possible take-over from a smaller firm.
What is one market trend that results when a monopolistically competitive firm starts earning profits well above its costs?
Fierce competition would encourage rivals to create new ways to differentiate their products and lure customers to them.
Why would a firm raise the price of a product after a producer determines that the demand for one of its products is inelastic?
The firm would raise the price because the firm's total revenues would probably increase.
What is the difference between order winners and order qualifiers?
An order Qualifier are the standards by which a firms products are passed as fit for possible purchase by customers. Order winners on the other hand are the standards that differentiate the products or services of one firm from another.
If a monopolistically competitive firm is making profits, how is it able to maintain its competitive edge in the market?
A monopolistically competitive firm can maintain its competitive edge in the market by offering unique products or services that differentiate it from competitors, creating brand loyalty among customers, and effectively marketing its products to attract and retain customers. Additionally, the firm may also benefit from barriers to entry that prevent new competitors from easily entering the market.
Can a perfectly competitive firm set a price for its products that is above marginal cost?
A perfectly competitive firm would set its prices at a perfectly competitive price.
Is a competitive advantage in a mature industry possible how can a firm differentiate in a mature industry?
Competitive advantage in a mature industry is definitely possible. There are many ways through which a firm can differentiate in a mature industry. Being unique and maintain quality are some of the basic aspects.
Why is the price elasticity of the demand curve of an individual firm in perfect competition is always infinite?
Under perfect competition, the industry is defied as a group of firms producing a homogeneous product. The technical characteristics of the product as well as the services associated with its sale and delivery are identical. Hence there is no way in which a buyer could differentiate among the products of different firms. If the product were differentiated the firm would have some discretion in setting its price. So the firm is a price taker and its demand curve is infinitely elastic.
How do sellers differentiate their products under monopolistic competition?
Sellers offer different, rather than identical, products. Each firm seeks to have monopoly-like power by selling a unique product. Product variation is much more common than having identical products. As a result, monopolistic competition is much more common than perfect competition.
What is the difference between inter-firm and intra-firm in context of distribution reqiurement planning?
Inter-firm distribution is the process of distributing services, information, or products between two or more different firms. Intra-firm distribution is distribution of services, information, or products within one single firm.
What is the meaning of the phrase vertical integration?
Vertical Integration is a firm from business that deals with buying a supplier or a buyer of a firms products. For example if a firm with an oil refinery bought an oilfield, it would be upstream vertical integration - they bought a supplier. If that same firm bought a gas station it would be downstream vertical integration. Buying an unrelated firm is diversification.
Which firm is more likely to have an elastic supply?
A firm making underwear will need a supply of elastic.
What is the cost to a firm in an oligopoly that fails to?
In an oligopoly, a firm that fails to effectively compete may face significant costs, including loss of market share and reduced profits. The firm could also suffer from increased price competition, leading to a price war that further erodes margins. Additionally, failing to innovate or differentiate products can result in decreased customer loyalty and a long-term decline in market position. Ultimately, these factors can threaten the firm's sustainability in a highly interdependent market environment.
