Karan works at a shoe store where the latest trends in shoes are displayed. Down the road from his store, two more stores opened
up and began selling similar styles of shoes. His store no longer has a monopoly in shoes on that road. What would happen to the price of shoes in Karan’s area? A price would happen in Karan’s area, because customers now have more options for shoes.
A price war would happen in Karan’s area, because customers now have more options for shoes.
Before two more shoe opened up, the shoe store where Karan works was a monopoly. In economics, monopoly market is a market where there is just only one seller who can charge an abnormally high price for its product as there are no other seller in the market.
The opening up of two more stores that began selling similar styles of shoes as Karan's Shore Store will bring about a Perfect Oligopoly.
A perfect oligopoly exists when there are two or more but less than 20 firms/sellers who sell identical products in a industry/market. As a result, each firm/sell must consider the price charged by the other firms/seller before setting its own price. This will lead to a price war and will make the price of the product, in this case shoe, to fall.
C) Its main emphasis is on maximizing the value of the business for successors.
When an entrepreneur wants to sell his business to another small business or a larger company, they should try to maximize the value of their current business since the entrepreneur will be able to sell it at a higher cost and the new owner will have a healthier and potentially more profitable business to run.
<span>Joe is a life insurance policyowner who has failed to pay interest on his policy loan. What will result from this nonpayment? Joe's payment will go up to reflect the added amount from interest he did not pay previously. Just like a credit card, loans often collect interest and the </span>interest is deemed to be paid on time. When it is not paid it is tacked on to yet another bill causing the principle payment to rise.
Explanation: In simple words, pull marketing strategy refers to the strategy in which the producer tries to create demand for the product by using promotional tools. Under this strategy, the firm focus to make customer seek a product unlike push strategy in which the firm focuses on pushing the product to people.
In the given case, WEE be is using TV medium to promote its product hence they are using pull marketing strategy.