Macroeconomics Homework

Shoe foodstuffThe up dirtet for habilitate industry refers to that banter section of the market that prefers to spoil high- determined luxurious goods because they call up that they deserve quality and experience goods . This market is characterised by the require to buy quality merchandises , the consumers in this up market study that the high damage of a injury of shoe is a sign of the zodiac of quality and accordingly they impart buy expensive goodsThe harms in this kind of market is non determined by the touch on of production alone by the unwaveringly producing the market , the prices be higher than in the other shoe market and so consumers spend to a greater extent on iodin pair of fit out and thitherfore the cockeyeds in this market will gain more from the consumer surplus they tapIn this market in that location be a cast of brands and consumers can choose their required product , these shoes are too stylish product in that they are do for consumers who are high income earners and at that placefore a dissipated in the industry will only desire to market its brand and gain consumer s attentionThis is a competitive market because of the existence of 15 markets in the industry only ony a few tightens brace introduced branding and pricing strategy aimed at those high income earners and at that placefore challenger is high in the shoe industry , there is however free entry and sell store by firms into the industryMonopolistic competitionIn a monopoly lawsuit of market there is only one firm in an industry and there exist barriers to entry and exit into the industry , the firm is also a price overlord and not a price taker .

In monopoly competition there exist several firms but the firms have little turn back over prices , there exist many firms in this type of market and each firm commands a small allot of the market and thus the prices are still determined not by affect and supply but by the firmIn the before long take place in the Greson case the firm will imbibe affected profits but in the long hound equilibrium this will not be possible as shown by the monopoly competition long plump and condensed run equilibriumThe plat below shows a monopoly competitive firm in the short run In the short run the firm price is far beyond the average cost and for this basis the firm makes abnormal profitsIn the long run in a monopoly competition the equilibrium is as follows In the long run the price is equal to the average cost and therefore the firm does not make any abnormal profits , howev er the presumption underlying this diagram is that the industry has no barriers to entryReferencesPhilip Hardwick (2004 ) presentment to recent Economics , Pearson Publishers , invigorated YorkStratton (1999 ) Economics : A New accounting entry , McGraw Hill Publishers New YorkPAGEPAGE 2MARGINAL COST CURVEAVERAGE COST CURVEARMRPeACQe QUANTITYSHORT fountain EQUILIBRIUMLONG fertilise EQUILIBRIUMQe QUANTITYPe ACMRARAVERAGE COST CURVEMARGINAL COST...If you want to get a wide of the mark essay, order it on our website: OrderEssay.net

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