Economic for Managers
- Submitted by: crock05
- Views: 585
- Category: Politics: Economics
- Date Submitted: 06/16/2011 09:01 AM
- Pages: 5
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Introduction: Clearly identify the firm chosen (including its characteristics that make it qualify as a Monopolistically Competitive firm/ Monopoly/Oligopoly
Goods that have a relatively inelastic demand with respect to income are generally shielded. Food has a very inelastic demand. I feel no matter how bad the economy gets, people are going to eat and will continue to purchase food. This is particular true for staple foods and goods like insulin and bread. In addition, when the economy improves, people rarely eat more or buy more necessities.
The fast food industry is steady growing every day. People love to eat out and with the economy in the shape it’s in both parents have to work and that leaves little time to cook so fast food will always be booming. Fast food industry is a monopolistic competition is a market structure characterized by a large number of relatively small firms. While the goods produced by the firms in the industry are similar, slight differences often exist. ( AmosWebb, 2011) The fast food market we find many firms that produce a hamburger, such as McDonalds, Burger King and Wendy’s. Each firm differentiates their hamburger and they are not made exactly the same. As Wendy’s raises their prices, some of their customers will begin eating at Burger King, while others will remain loyal to Wendy’s. This is a function of the downward demand curve that firms in a monopolistically competitive market structure experience. As price increases, quantity decreases. Similarly as price decreases, quantity increases
Current Data on GDP, Inflation, Unemployment etc for the U.S economy
Inflation can be defined as the overall general upward price movement of goods and services in an economy. BLS has various indexes that measure different aspects of inflation.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in April on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months,...
Goods that have a relatively inelastic demand with respect to income are generally shielded. Food has a very inelastic demand. I feel no matter how bad the economy gets, people are going to eat and will continue to purchase food. This is particular true for staple foods and goods like insulin and bread. In addition, when the economy improves, people rarely eat more or buy more necessities.
The fast food industry is steady growing every day. People love to eat out and with the economy in the shape it’s in both parents have to work and that leaves little time to cook so fast food will always be booming. Fast food industry is a monopolistic competition is a market structure characterized by a large number of relatively small firms. While the goods produced by the firms in the industry are similar, slight differences often exist. ( AmosWebb, 2011) The fast food market we find many firms that produce a hamburger, such as McDonalds, Burger King and Wendy’s. Each firm differentiates their hamburger and they are not made exactly the same. As Wendy’s raises their prices, some of their customers will begin eating at Burger King, while others will remain loyal to Wendy’s. This is a function of the downward demand curve that firms in a monopolistically competitive market structure experience. As price increases, quantity decreases. Similarly as price decreases, quantity increases
Current Data on GDP, Inflation, Unemployment etc for the U.S economy
Inflation can be defined as the overall general upward price movement of goods and services in an economy. BLS has various indexes that measure different aspects of inflation.
The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in April on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months,...