Readers Question: Why doesn’t WTO make into law that all manufactured goods should either be assembled or made in the continent where its been sold? There is so many reason why this should be put in place in our globalised world I don’t agree. The benefits of a globalised world are that we can benefit …
Vertical integration occurs when two firms at different stages of production merge. It involves going up or going down the supply chain. Example of vertical integration. Brewery merging with chain of pubs Software supplier merging with Computer firm Coffer grower merging with a coffee retailer such as Nescafe Car firm Renault merging with a tyre …
A report by NIESR suggests that austerity pursued by the government in 2010, needlessly led to a delayed economic recovery and could have cost the UK 5% of GDP or £1,500 per person. The austerity was unnecessary because The lower growth led to delayed rises in tax increases and Interest rates were at 0%, and …
Private label brands (or own brand labels) are products sold by a retailer with its own packing, but manufactured by a third party. For example, Tesco sell ordinary branded items, such as Heinz baked beans, but also sell their own ‘Tesco Value’ baked beans. Tesco will license a manufacturer to produce baked beans and then …
Definition of Marginal Cost Marginal Cost is the cost of producing an extra unit. It is the addition to Total Cost from selling one extra unit. Q Total Cost (TC) Marginal Cost (MC) Average Cost (AC) 1 10 10 10 2 16 6 8 3 23 7 7.6 4 32 9 8 5 45 …
Essay Question: Discuss whether the airline industry is contestable? A contestable market has freedom of entry and exit, low sunk costs and competitive equilibrium. There are high fixed costs in setting up an airline firm. Buying planes, training staff e.t.c. Therefore there are significant economies of scale in this industry. Therefore it makes it difficult …
Horizontal integration occurs when there is a merger between two firms in the same industry operating at the same stage of production. For example, if two newspapers like the Independent and the Guardian merged, this would be a horizontal integration. Horizontal integration is different to vertical integration which occurs when firms at different stages of …
The UK grocery market has become increasingly competitive in the past few years. It is a good example of an oligopoly becoming more competitive. Certainly, the growing strength of discount giants like Aldi and Lidl have really shaken up the market and diluted the cosy oligopoly previous enjoyed by the likes of Tesco and Sainsbury. …