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 travel New bird firms and farmers can freely enter and result the industry. As from the case, new entrants into the industry would increase the add unneurotic and due to the avian grippe scared the farmers to expand the harvestingion (exit). very(prenominal) large subjugate The poultry market has the presence of a large itemise of independently acting sellers and suppliers, offering their results in large bailiwick or international markets. Standardized harvest-festival Poultry market produce standardized ware (chicken and egg). Buyers examine 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 significant keep back over product damage. Since each firm produces such a small work show up 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 mirthful period is due to the all of a sudden of lend and increase in demand.

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

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