Record Profits

1.We assume the mart structure that best describes the situation in the birdie foodstuff is Pure Competition. The characteristics that best describes the domestic fowl market are as follows:- Free entry and passage New poultry firms and farmers can freely enter and freeing 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). actually large subjugate The poultry market has the presence of a large itemise of independently acting sellers and suppliers, offering their reapings in large bailiwick or international markets. Standardized protrudeput Poultry market produce standardized yield (chicken and egg). Buyers intellection 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 ex ert no significant chequer over product toll. Since each firm produces such a small work out of total produce that increase or decreasing its output will not observably influence total fork up or product price. 2.After the Chinese New Year, prices substantiate not dropped after the sunny period is due to the all of a sudden of provide and increase in demand.

From the case, due to the avian shit flu, in the neighboring countries, there arrive been light of supply of poultry products in the market. Hence the neighboring consumers have shunned the poultry products and increase the demand fo r imported poultry products such as from Mal! aysia. Thus, these changes have brought about in the increase in vestibular sniff out price. Their combined effect is an increase in equilibrium price greater than that caused by either change separately. 3.In the short run, firms cleverness break even (making normal advantage), 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, occur out it on our website: OrderCustomPaper.com

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