• Time-consuming, difficult and costly implementation; thus often carried out only by large companies. • Sometimes difficult to explain to management due to its complexity. • It does not comply with US GAAP or IFRS (mainly because it allocates also selling and administrative overheads), so entities using ABC need to maintain two accounting systems, which may differ. 9.3.4. When Activity based costing (ABC) is less useful ABC is less useful (or maybe does not make sense), if the entity: • produces a single product • does not have many different activities driving the costs • cannot influence selling price of its products (e.g.
The reality is that a stable equilibrium is never reached since new products come and go all of the time, some do better than others. Existing products within a market will typically go through a product life cycle that affects the volume and growth of sales, hence it can now be determined that the long term effect of monopolistic competition offers a certain level of uncertainty yet profits in the long term look promising.One of the implications of monopolistic competition is that an inefficient outcome is
A monopoly is a market with a single firm that produces a good or service for which there is no other close substitute that exists due to the protection the firm enjoys as a result of barriers that keeps other firms from entering the same market (Parkin 2013). In a pure monopoly the diagram for short run and long run is the same. Supernormal profits occur when an organisation makes more than the maximum competitive market profits. This is when total revenue is always greater than the total costs. The diagram below depicts a monopoly in both the short run and long run.
An oligopoly is a market with a small number of sellers. • Oligopoly requires strategic thinking, unlike perfect competition, monopoly and monopolistic competition. Characteristics of an oligopoly There is no single theory of prices and production in the oligopoly market. If the price war breaks out, oligopolists can produce and the price as well as a highly competitive industry and would sometimes act as a pure monopoly. An oligopoly generally has the following characteristics: • Product Branding: Every company in the market selling a branded product.
Many say that there is no such thing as Natural Monopoly. It is simply because Monopoly itself is Monopoly no matter what. There is no categorizing Monopoly. Creating the theory of Monopoly does make some sense. Natural Monopolies often occur in markets for essential services which require a ton of budget and expensive infrastructure.
Thesis Statements: Although the decision to end net neutrality has already been made, some people are still arguing whether ending net neutrality was the right decision. Some people claim that it was the right decision to abolish net neutrality because then, infrastructure investment would greatly benefit consumers as it would create more competition, resulting in cheaper internet prices, which is especially beneficial to rural areas. However, net neutrality should ultimately not have been repealed because without net neutrality, consumers’ freedom of information and freedom of the internet will be violated, and businesses
industry exist if broader outlook is considered. Viewing any industry as technologically mature often leads to strategic disaster. Moreover, many important innovations for competitive advantage are mundane and involve no scientific break-through. Innovation can have important strategic implications for low tech as well as hi-tech companies. Porter also addressed that the technology can alter the nature and basis of rivalry among existing competition in several ways.
But as long as it does not involve a market where the state through licensing, authorization, restriction of building permits, producer or similar rules limiting new establishment so is Microsoft's success that Microsoft is giving consumers what they want better than competitors. The state cannot by antitrust "force" until competitors - and it does so it gives Microsoft's competitors an unfair advantage, just because they happen to be less on the market than
Environmental problems in the long-term which resulted in ignorance of firms that emphasize on maximizing economic income in short term. 2.2 Pros of capitalism i. Economic freedom helps political freedom which means that can avoid large bureaucracy as governments own the means of production and set prices, it invariably leads to a powerful. ii. Firms in a capitalist will efficiently produce goods which are in demand and put efforts to cut costs and avoid waste to improve productivity and competitiveness.
Literature Review (3) According to (McGee, 1992), he stated that making insider trading legal would make it clearer for all individual investors to know where they are investing their money. But keeping it banned will create illusion of fairness which keeps everyone worse off. Insider trading is actually an active good. Insider trading bans not actually stamp out insider trading. Insider trading remains and may actually be growing, which puts law-abiding investors at a disadvantage.