steelmakers. Because attachment 1 mentions that price decrease which result in a decrease in demand for iron ore by Chinese. As shown in diagram 1 below, the price of steel dose down from P1 to P2, thus the quantity supplied of steel decrease from Q1 to Q2, which means there are less demand for iron ore. And the article also shows that an increase in the price of iron ore. Price increases leads to a decrease in quantity demanded of iron ore. And price goes up lead to a movement along the demand to
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ABSTARCT Marketing is the process of planning and executing the concepts of pricing, promotion and distribution of ideas, goods and services that satisfy individual and organizational goals (AMA). Successful marketing requires a winning strategy. Understanding marketing strategy formulation lets you properly evaluate your organization's marketing needs. You can then gear your marketing strategies to achieve maximum effectiveness. Marketing strategy formulation is the process of defining an organization's
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control and power. Price elasticity of demand Market supply and demand determines the price. The price is elastic because supply and demand affect by it. A monopoly is inelastic because the supply and demand of the product is unchanged by price. Monopolistic competition company is inelastic. The company can sell at a higher price, or sell less at a lower price and be unaffected. The company would have control of the market. These companies are price makers not takers. The price elasticity of demand
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Q1: explicit costs and implicit costs concepts Explicit Cost Explicit cost is defined as the direct payment which is supposed to be made to others while running business. This includes the wages, rents or materials which are due in the contract. The explicit cost is the expense done in business which can easily be identified and accounted for in the business at any stage. The explicit cost represents the out flows of cash in clear and obvious terms. When any out flow of credit occurs in a business
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MONOPOLY While a competitive firm is a price taker, a monopoly firm is a price maker. A firm is considered a monopoly if it is the sole seller of its product. – its product does not have close substitutes. The key difference: A monopoly firm has market power, the ability to influence the market price of the product it sells. A competitive firm has no market power. WHY MONOPOLIES ARISE The fundamental cause of monopoly is barriers
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allows buyers and sellers to come together and buy and sell their products or services in exchange for money. Furthermore, for almost every product there is substitute, so if one product price rises, buyers can choose a cheapest substitute instead. In a market both the buyers and sellers have equal power to influence price. Monopoly Market: A monopoly market is an organization in which there is only one seller/producer. There is a strong barrier for other organization to enter into the market. The barriers
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social indifference curve. The government can change the initial allocation of resources such that the distribution of income can be made socially desirable without affecting the Pareto efficiency condition. Answer no. 08 The situation in which price becomes greater than marginal cost, as in a monopoly market, cannot be Pareto efficient because marginal valuation of the consumer for the commodity as expressed by MRS exceeds MRT and in this situation the society’s total welfare can be increased
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own companies and context, and apply them. The case teaches us: - about moving from a production/selling orientation to a market orientation. This is really really important. The whole case is about this. Market orientation is not just some price change or a new ad campaign. It involves the whole organizational culture, organizational structure, and the whole marketing mix. Get it right inside (i.e. develop a market oriented company culture), and then go outside. - about the role and responsibilities
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the firm level to answer basic questions about why companies produce what they do, and what motivates their choices when allocating capital and labour. Modern takes on the theory of the firm take such facts as low equity ownership by many decision-makers into account; some feel that CEOs
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naturally. Deliberate barriers to entry, also known as artificial barriers to entry, occur when monopolistic markets set their prices. Unlike hims in perfect competition where they are price takers, monopolistic and oligopolistic firms are price makers. Therefore firms with monopoly power have the advantage of limit pricing: lower prices with higher output. They create a price lower than the average total cost (ATC) of potential entrants into the market. Using their better knowledge of the market, they
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