Video on demand

Defective demand rises, at times, when any individual sellers and buyers can influence the production as well as prices. Moreover, when the perfect information is unknown to the market actors, such situation arises. In addition to this, when too fewer sellers control many markets, or when the prices fail to adjust the material changes in the market conditions. Majority of the economic debates originates from all these instances. For instance; when too much of stuff are on sale, and the demand is…

services. These inputs include labor, land, and capital. The theory of the firm is a microeconomic model referring to businesses and corporations and how those entities exist to make profits. Firms interact directly with the market to determine the demand for their goods so they can define the price consumers are willing to pay. Referring to the circular-flow diagram model we can see how households and firms are interdependent. Firms use the factors of production to produce products that…

1) Market based transfer prices Market based transfer prices occur where a perfectly competitive market exist for intermediate products which makes it optimal for both decision making and performance evaluation to set transfer prices at competitive market prices. A perfectly competitive market exist when products sold are all the same and no individual buyer or seller can affect market prices. Transfer prices are recorded at market prices therefore divisional performance is likely to represent…

1. Variable costs will vary in direct proportion to changes in the level of an activity (1. Walther & Skousen, Managerial and Cost Accounting, 2009, 37). In other words this cost can’t be the same in all periods of time. It can be for example electricity bill for company’s office or fuel for the truck in the warehouse. Fixed costs are opposite for variable costs. Fixed cost don’t change with the level of an activity. Even if the output or input of a unit changes, it will still remain in the…

Throughout history, prices were set between sellers and buyers through negotiations with one another. Usually in these circumstances, sellers would ask for higher prices, while buyers would offer less for certain goods or services. Through deals, they would come to a mutual agreement of price acceptance. Price is the only attribute in marketing mix that yields revenue, all other attributes produce costs (Kotler, 1997). Companies often use different pricing techniques to stimulate early purchase…

PRICE WAR- COLA INDUSTRY SHUBHAM VIJAY PGP 2015-17 INTRODUCTION Price war is "commercial competition characterized by the repeated cutting of prices below those of competitors". One competitor will lower its price, then others will lower their prices to match. If one of them reduces their price again, a new round of reductions starts. COLA INDUSTRY Stumbling twice to the hitches of bankruptcy, PEPSI today can boast of its position in the cola industry going neck to neck with COCA…

tickets at one price and resell it at higher price due to excess demand in the market. This action causes outcry from the public. There are three main aspects to address and essentially propose a policy to curb ticket scalping, which are why and how ticket scalping arises, which party involves, and why original ticket sellers would price down ticket price. Ticket scalping occurs when supply is limited, whilst there is excess demand in the market. In a major rugby tournament, the supply of…

Aldi uses a Cost-Focused competitive strategy. This can be seen by the way that Aldi takes more consideration of the middle class people that live in rural and suburban areas by introducing the lower prices on most of its products. Aldi focuses more on high volume and fewer products, so that they are able to increase their sales and still offer lower prices. Another thing that Aldi does to implement the cost-focused competitive strategy is that they are not open for twenty-four hours like many…

2.4) The cost that a company would incur to purchase one unit of the resource used to produce a good is called the marginal resource cost. In many cases, these extra resources are the sources of labor and the costs incurred are the salaries paid to the employees. Organizations ensure that their marginal resource cost is equal to or less than the amount it takes to produce one more unit of the product. MRC= Change in total cost/Change in inputs When more units of variable inputs are used the…

The need for people to exchange goods and services has long existed even before money as we know it today was invented. Through time, people have devised ways to make trade or exchange of goods more convenient. The barter is the most ancient and primitive form of trade. In a barter economy, no notion of money existed. Goods were exchanged directly. One needed to find an individual who had the goods you were looking for and at the same time was in need of the goods you had. It is easy to see how…