Economics Questions & Answers: Market Structures & Efficiency
Monopolistic Competition
Question 1
True or False: In monopolistic competition, firms earn a normal profit and have excess capacity in the long run.
Question 2
True or False: Advertising costs are fixed costs, and cost per unit decreases as production increases.
Question 3
In the model of the kinked demand curve, why is demand less elastic well below the market price?
Question 4
In a dominant duopoly, how does the dominant firm act, and how do smaller companies in the market behave?
Question 5
Who are the
Read MoreProject Evaluation: Key Aspects & Analysis
UNIT 3: Analysis of Quantitative and Qualitative Variables
Commercial Aspects
These aspects involve studying market supply and demand and developing a marketing plan for a new product or service.
Market Analysis
Analyzing demand and supply involves studying the market. This allows for assessing the current market structure and sector prospects, considering economic, social, or cultural trends that may positively or negatively impact the sector and influence the entry of a new product.
Demand
Information
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Demand Analysis
Consumer Preferences and Indifference Curves
The demand for a good depends primarily on the tastes and preferences of individuals.
Indifference Analysis: A qualitative measure of character, which starts with tastes and preferences. It is an ordinal approach; we cannot quantify it. We assume rational behavior for these economic agents, expressed in their tastes and preferences.
Indifference curves are convex and decreasing, representing greater preference the further away they are from
Read MoreCompany Organization and Customer Service Management
1. Company Definition and Types
Company: A group of people, material, and financial assets organized to produce something or provide a service to gain a benefit.
1.1 Types of Companies
- Manufacturers: Transform materials into products.
- Distributors: Distribute goods.
- Retailers: Sell goods to consumers.
1.2 Firm Organization
- Formal: Established by company direction to prevent overlapping.
- Informal: Arises from common interests of different groups.
1.2.1 Legal Structures
- Sole Trader: Self-employed individual.
The Impact of Staff Turnover and Retention Strategies
The Impact of Staff Turnover
There is some debate about the level at which staff turnover rates have to reach in order to inflict measurable damage on an employer. The answer varies from organization to organization. In some industries, it is possible to sustain highly successful businesses with turnover rates that would make it impossible to function in other sectors. Some chains of fast-food restaurants, for example, are widely reported as managing with turnover rates in excess of 300 percent.
Read MoreInternational Trade and Globalization: An Overview
International Trade and Globalization
Stages of Economic Integration
Stage 1 (Integrated Economy): No national boundaries, free mobility of factors and goods.
Stage 2 (Autarky): No factor mobility, no goods mobility.
Stage 3 (International Trade): No factor mobility, goods mobility.
Stage 4 (Globalization): Partial factor mobility (high for capital, low for labor), multinationalization, goods mobility.
Foreign Direct Investment (FDI)
FDI involves “jumping over” borders and producing outside the home country.
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