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aliya0001 [1]
3 years ago
9

The textile industry in Pakistan is growing over the time due to the modernization, high standards of living and increasing dema

nd for good material at reasonable price. Many fabric brands like as Gul Ahmed, Sana Safinaz, Warda, Nadia Hussain, Firdous Lawn, Bareeze Lawn, Khaadi, Kayseria, Nishat and many others jointly make the textile industry in Pakistan. As there are more than 50 top fabric brands in Pakistan which are concerned with design, production and distribution of yarn, cloth and clothing but in the face of this high competition, Khaadi is efficacious enough to capture the enormous market share and profit. It has specialized in hand-woven products and other textiles. It has 45 branches working across Pakistan. Estimated annual revenue of Khaadi is 100 Million $.
Being a student of economics, you’re required to identify the market structure category in which this Khaadi brand falls. Justify your answer by applying any two key characteristics of that market structure on the given industry.
Business
1 answer:
stepladder [879]3 years ago
3 0

Answer:

The correct answer is, Oligopoly.

Explanation:

This is so true that in Pakistan, the textile industry has grown at a much bigger pace in the past recent years. There are many brands that are mentioned in the question that are concerned with the design and production of yarn, cloth and clothing, but they face high competition.

According to the question, Khaadi is the brand in Pakistan which is capturing the most of the market share and profit. According to the characteristics, Khaadi fall under the market structure of Oligopoly. Oligopoly is the market structure in which only few of the firms are dominating in the industry.

So now defining the two characteristics of Khaadi as oligopoly; one is, Khaadi is the dominating brand with the highest market share in the textile industry. Secondly the products of Khaadi are homogeneous but differentiated because of the specialized hand woven products, which other brands hardly practice.

So Khaadi falls under the Market Structure of Oligopoly.  

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Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $321,000 per year. You b
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NPV= $31,824.16

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Giving the following information:

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To calculate the net present value, we need to use the following formula:

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Cf3= 321,000/1.13^3= 222,469.10

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3 years ago
Suppose your uncle offers you $100 today or $150 in 10 years. you would prefer to take the $100 today if the interest rate is
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2 years ago
Brandon mows six yards once a week for 22 weeks. He averages making about $30 a yard but spends about $5 a yard on Gasoline and
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Answer:

His yard business makes him $7,800 every year after accounting for expenses

Explanation:

<em>Step 1: Determine number of yards he mows he in a year</em>

I year has 52 weeks

He mows 6 yards once a week

Total number of yards he mows in a year=number of yards he mows in a week×number of weeks in a year

where;

total number of yards he mows in a year=unknown

number of yards he mows in a week=6

number of weeks in a year=52 weeks

replacing;

total number of yards he mows in a year=6×52=312 yards

<em>Step 2: Determine the amount he makes in a year</em>

Total amount in a year=amount per yard×number of yards in a year

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replacing;

Total earnings in a year=30×312=$9,360

<em>Step 3: Determine total expenditure</em>

The total expenditure can be expressed as;

Total expenditure=expense per yard×number of yards in a year

where;

total expenditure=unknown

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replacing;

Total expenditure=5×312=$1,560

<em>Step 4: Determine the net income after considering expenses</em>

The net income can be determined using the expression;

Net income=Total earnings in a year-total expenditure in a year

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total earnings in a year=$9,360

total expenditure in a year=$1,560

replacing;

Net income=(9,360-1,560)=$7,800

His yard business makes him $7,800 every year after accounting for expenses

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4 years ago
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