Effects of sudden increase or decrease in # of competitors
Not what you're looking for?
Based on the computer industry what are the positive and negative effects of either a sudden increase or decrease in the number of competitors on prices in the long run.
What would you recommend as a course of action, if any, and how would price moves from today to the future?
Purchase this Solution
Solution Summary
The solution discusses how would price moves from today to the future and what to recommend for this course of action.
Solution Preview
Lets assume that there is a sudden increase in the number of competitors in the computer industry.
Positive effects:
-An increase in the number of competitors would mean that more computers would be supplied in the market. As the supply of computers increase, price of computers would go down.
-Another positive effect ...
Education
- MBA, Aspen University
- Bachelor of Science , Berea College
Recent Feedback
- "Thank u"
- "Thank You!"
- "Thanks!"
- "Thank you so much"
- "Great job...thanks."
Purchase this Solution
Free BrainMass Quizzes
Elementary Microeconomics
This quiz reviews the basic concept of supply and demand analysis.
Economics, Basic Concepts, Demand-Supply-Equilibrium
The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.
Economic Issues and Concepts
This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.
Basics of Economics
Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.
Pricing Strategies
Discussion about various pricing techniques of profit-seeking firms.