Environment PESTEL The PESTEL framework categories environmental influences into six main types: * Political (Taxation changes‚ foreign trade‚ political risk in foreign markets‚ government policies) * Economic (Interest rates‚ GDP trends‚ unemployment rates‚ exchange rates) * Social (Population changes‚ income distribution‚ consumerism‚ changes in culture and fashion) * Technological (new discoveries and technologies‚ ICT innovations‚ increased spending on R&D) * Environmental
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Practice Exam Multiple choice questions. 1) Which of the following statements about natural monopoly is correct? A) A natural monopoly’s average cost is decreasing. B) A natural monopoly’s marginal cost is decreasing. C) A natural monopoly usually has a small fix cost. D) Governments usually want to ban natural monopoly. 2) Which of the following statements about perfect price discrimination is correct? A) A firm in a perfect competitive market can apply perfect price discrimination
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The firms that we had selected for this assignment are Perodua and Toyota. The market structure of both of the companies can be classified as the oligopoly. One of the characteristics of oligopoly is there are only a few sellers in the market. As an illustration‚ Proton is one of the local automobile manufacturers while Honda and Nissan are foreign automobile manufacturers. Since there are only a few sellers in this market‚ the fewer firms dominate and control all or most of the market. Additionally
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Sticky Price Hikes Help Beer Profits 1. “The oligopolistic nature of the market worked‚” commented one manager. What does this statement mean? This statement mean that since the sellers are so few‚ what one Beer seller does in the market can impact the its competitors and the industry. This means that since the industry is dominated by a few firms‚ then the firms that are competing in the market have to take into account competitors’ moves about pricing‚ advertising and output. 2. How
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Ben and Jerrys marketing stratgies Ben & Jerry¡¦s was experiencing a steady growth within their sales figures from 1990 to 1993. However‚ In March 1994‚ Cost of Sales increased approximately $9.6 million or 9.5% over the same period in 1993‚ and the overall gross profit as a percentage of net sales decreased from 28.6% in 1993 to 26.2% in 1994. This loss might have been a result of several reasons‚ such as high administration and selling costs‚ a negative impact of inventory management‚ and start
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Assignment 1: Economic Basics (24.0 points) 1. Describe two examples of important things that financial planning skills can help you do‚ and explain why these things are important to you personally. (4-6 sentences. 2.0 points) 2. List two examples of goods you have purchased in the past or may purchase in the future. (Complete sentences are not necessary. 0.5 points) 3. List two examples of services you have purchased in the past or may purchase in the future. (Complete
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Week 3 Knowledge Check Study Guide Concepts Mastery Score: 7 / 7 Questions MONOPOLY 100% 1 OLIGOPOLOY 100% 2 PROFIT MAXIMIZATION 100% 3 4 MARKET STRUCTURE 100% 5 6 7 Concept: MONOPOLY Mastery 100% Questions 1. In a monopolistically competitive market‚ A. firms produce differentiated products 1 B. there are barriers to entry C. firms produce homogeneous products D. the demand for any firm’s product is perfectly elastic Correct: The Correct Answer is: A. Concept: OLIGOPOLOY
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Discuss the effects of increased concentration in transport markets. Concentration ratio refers to the market share of the largest firms in an industry. For example‚ a 5 firm concentration ratio of 65% means that the 5 largest firms have more 65% of market sales. If the concentration ratio increased‚ then 1 or 2 firms may start to dominate the market and the firms will be able to exercise Monopoly power. (in UK legal definition of a monopoly is a firm with more than 25%) This is likely to cause many
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Corporate Strategy and Policy A Template for Structural Analysis of an Industry You can use the following template for analyzing the structure of an industry. It requires you to rate the attractiveness of an industry on a 5-point scale for several factors relating to each of the five forces in Porter’s (1980) model. (A 7-point or a 10-point scale would perhaps be even better in that it would allow finer discrimination between two businesses with different levels of attractiveness
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If the dealybob business were in a perfectly competitive market‚ I wouldn’t have to consider the barriers to entry. In perfect competition there are no barriers to entry; if there are profits to be made‚ other firms will enter the market until economic profits are reduced to the normal profit level. Because of this‚ I would receive zero economic profit if I entered a dealybob market that was in perfectly competitive market. Like a perfectly competitive industry‚ monopolistically competitive industries
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