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.
The marketing mix is a huge tool for making the correct marketing strategy and its usage through powerful strategies. The evaluation of the jobs of your product, promotion, price, and place has a crucial impact in your general marketing approach.
In this question, we are asked to state what will happen to unemployment rate and inflation in the short run in the event that a more productive technology is discovered.
Firstly, we must understand that producing a more productive technology will definitely cause an increase in the amount of needed labor. This automatically means there would be an decrease in unemployment rate as more people will be absolved into the labor force as a result of increase production level.
Now, a decrease in the unemployment rate is a positive indicator for the economy. The economy is expected to make gains and this will surely cause a decrease in the percentage of inflation in the short run
It wasn't fully announce that Sears is going out of business but rather, they are just going to close 150 of its branches this year 2017. This is according to Business insider. Most of the stores will start liquidation sales on Jan. 5 and will go out of business in March and April. Hope this helps.