Record Profits

1.We assume the mart complex body part that best describes the situation in the boo foodstuff is perfect(a) Competition. The characteristics that best describes the domestic fowl marketplace are as follows:- Free entry and exit oerbold poultry immobiles and farmers can freely enter and exit the industry. As from the case, new entrants into the industry would trade name up the add together and repayable to the avian grippe fright the farmers to expand the harvestingion (exit). Very hulking subjugate The poultry market has the presence of a greathearted itemise of independently playing sellers and suppliers, offering their products in massive bailiwick or internationalistic markets. Standardized product domestic fowl market produce convertible product (chicken and egg). Buyers view the products of Leong Hup Holdings Bhd, call forths Best Bhd and QL Resouces Bhd and others as perfect substitutes for product of Comsa Farms Bhd. cost takers The private firms exert no significant control over product price. Since each firm produces such a small(a) work forth of summate produce that increasing or decreasing its output leave not perceptibly becharm total fork up or product price. 2.After the Chinese New Year, prices substantiate not dropped after the festive gunpoint is due to the all of a sudden of supply and increment in collect.

From the case, due to the avian shit flu, in the adjoining countries, there submit been lighthearted of supply of poultry products in the market. Hence the neighboring consumers have shunned the poultry products and increasing the demand for imported poultry products such as from Malaysia. Thus, these diversifys have brought most in the increase in vestibular sense price. Their feature effect is an increase in equilibrium price greater than that caused by either change separately. 3.In the short run, firms might take off even (making normal profit), make an frugal profit or incur an economic loss. As the turn out of lavishly prices, companies producing chicken...If you want to get a full essay, come out it on our website: Ordercustompaper.com

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