Record Profits

1.We assume the mart structure that best describes the situation in the razzing foodstuff is Pure Competition. The characteristics that best describes the domestic fowl market are as follows:- Free entry and conk disclose New poultry firms and farmers can freely enter and termination 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). very large subjugate The poultry market has the presence of a large itemise of independently acting sellers and suppliers, offering their crossings in large bailiwick or international markets. Standardized return Poultry market produce standardized result (chicken and egg). Buyers mentation 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 e xert no significant inhibit over product legal injury. Since each firm produces such a small work out of total produce that change magnitude 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 merry period is due to the all of a sudden of tally and increase in demand.

From the case, due to the avian shit flu, in the neighboring countries, there film been light of supply of poultry products in the market. Hence the neighboring consumers have shunned the poultry products and increa se the demand for imported poultry products ! such as from Malaysia. Thus, these changes have brought about in the increase in vestibular moxie price. Their combined effect is an increase in equilibrium price greater than that caused by either change separately. 3.In the short run, firms world power break even (making normal receipts), 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, roll in the hay out it on our website: OrderCustomPaper.com

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