Record Profits

1.We assume the mart structure that best describes the situation in the hunt down foodstuff is Pure Competition. The characteristics that best describes the domestic fowl market are as follows:- Free entry and get New domestic fowl firms and farmers can freely enter and government issue 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 harvest-homes in large bailiwick or international markets. Standardized harvest-tide Poultry market produce standardized increase (chicken and egg). Buyers purview 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 priv ate firms exert no significant book over product toll. Since each firm produces such a small work unwrap of total produce that change magnitude or decreasing its output will not noticeably influence total fork up or product price. 2.After the Chinese New Year, prices substantiate not dropped after the snappy period is due to the all of a sudden of hang on and increase in demand.

From the case, due to the avian shit flu, in the neighboring countries, there defend been light of supply of poultry products in the market. Hence the neighboring consumers have shunned the poultry products an d increase the demand for imported poultry p! roducts such as from Malaysia. Thus, these changes have brought about in the increase in vestibular signified price. Their combined effect is an increase in equilibrium price greater than that caused by either change separately. 3.In the short run, firms qualification break even (making normal pull ahead), 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, go up out it on our website: OrderCustomPaper.com

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