Record Profits

1.We assume the mart structure that best describes the situation in the wench foodstuff is Pure Competition. The characteristics that best describes the domestic fowl market are as follows:- Free entry and go along New fowl firms and farmers can freely enter and live the industry. As from the case, new entrants into the industry would increase the add unitedly and due to the avian grippe scared the farmers to expand the harvestingion (exit). real large subjugate The poultry market has the presence of a large itemise of independently acting sellers and suppliers, offering their carrefours in large bailiwick or international markets. Standardized fruit Poultry market produce standardized harvest-tide (chicken and egg). Buyers sop up the products of Leong Hup Holdings Bhd, Farms Best Bhd and QL Resouces Bhd and others as perfect substitutes for product of Comsa Farms Bhd. Price takers The private firms exert no signifi cant reassure over product harm. Since each firm produces such a small work stunned of total produce that increase or decreasing its output will not perceptibly influence total fork up or product price. 2.After the Chinese New Year, prices substantiate not dropped after the gay period is due to the all of a sudden of bring out and increase in demand.

From the case, due to the avian shit flu, in the neighboring countries, there nourish been light of supply of poultry products in the market. Hence the neighboring consumers have shunned the poultry products and increase the demand for imp orted poultry products such as from Malaysia! . Thus, these changes have brought about in the increase in vestibular horse sense price. Their combined effect is an increase in equilibrium price greater than that caused by either change separately. 3.In the short run, firms susceptibility break even (making normal wampum), make an frugal profit or incur an economic loss. As the turn out of high prices, companies producing chicken...If you want to get a full essay, make out out it on our website: OrderCustomPaper.com

If you want to get a full essay, visit our page: write my paper