Hand Made Music Boxes Essay

In a grocery store where noncompetitive rival exists, parentagees operate in a manner wherein producers sell differentiated products from mavin an some early(a), yet similar. This means that the product is non homogenous. Firms privy still food market their products by the highlighting the slight differences in their output. The various producers in this caseful of market atomic number 18 selling their products, in this case hand do practice of medicine boxfules, which act as substitutes. Firms are equal to(p) to control the prices in some(a) degree within a narrow range of prices.They enter the market if the profits are attractive wherein they can maximize their profit and are left with excess work capacity. In a market where on that point is noncompetitive competition, there are many theatres, which each sloshed has a small market share and operates independently from each other. (Salvatore, 2007) Enterprise, natural, application and chapiter are considered as the factors of production in the economy. Given a libertine that operates a business in hand create unison boxes, these factors of production are important as to gain profit and be able to be warring in the market.In a monopolistic emulous market, it is assumed that all these factors of production are mobile, in which if these are not being used efficiently, they ordain move instantly to where they can be maximized. (Harvey & Jowsey, 2007) In an enterprise, entrepreneurial skills are needed to manage and direct the other three factors of production to enable a production of goods or run in the market. Operating a hand made music box ineluctably skills from people that abide managerial experiences that can lead the immobile into a competitive expediency through effective planning and work in producing the goods needed in the market.This ordain aid in giving the business a competitive advantage wherein the characteristics of the hand made music box of a certain besott ed is made with feeling than that of other starchys in the market. (Case & Fair, 2007) No business can operate without natural or land as part of its factors of production. Land is where the business is being done. It can be a factory, building, agricultural land or office, simply this should have a location for it to be established. An access to land is needed in setting up firms. (Case & Fair, 2007) Hand made music box business needs a factory for the assembly of parts and for storing.Moreover, this business needs a shop for the goods to be displayed so that the goods can be seen by the consumers that go away buy the product. Access to land and property can reverse the standard of production as well as be more competent in the market. (American Journal of Economics and Sociology, 2002) Businesses manage to exist because of its labor force. Firms do need people who can do hours of work for them. In making hand made music boxes, there can be a composition of various assembly l ines. These assembly lines are made up of people that will do specific parts in making the hand made music boxes of the firm.Skilled workers help the firm in having competitive advantage in the market. In a competitive market, skills of workers are important to produce high quality goods that can be sold to consumers. This will result in a high advantage of a certain firm that usages highly skilled workers over those firms that employ lesser skilled people. (Harvey & Jowsey, 2007) In every business setting, capital should be present. Capital refers to equipments used by firms to produce goods. The workers of a hand made music box business need equipments for the production of the goods. These equipments will help the production be more effective and efficient.In a competitive market where different firms compete for products being sold to consumers, a firm needs capital that will increase the quality of the product. This will make the firm more advantageous in terms of output and q uality in the market. (Harvey & Jowsey, 2007) Given that the situated market is in a monopolistic competition scenario, a firms posit bring down will intersect the industrys demand curve at the firms equilibrium level of output and price. (Weins, 1999) This explains why the demand curve is relatively elastic and downward sloping, which can be associated to a flat, but not horizontal demand curve.Firms in this type of market will have less control over price to charge their output. A firm that makes profit in the short-run will break even so eventually because of a decrease in demand in the long-run, which in this case will result in a zero stintingal profit. (Duffy, 1993) Considering the law of supply, monopolistic competitive markets might not produce large quantities as a response to higher prices. The hindrance to the positive-quantity supply relation is the market control and downward sloping demand curve among monopolistic competitive markets.Monopolistic competitive firm s are considered to be price-searchers rather than price-takers because prices will change by the comparison of marginal revenue with marginal follow in every possible price along with the market demand curve. Prices are not placed equal to marginal revenue furthermore, it is not equal to marginal cost and price. Thus, as a result, firms do not essentially supply more quantities of goods at lower prices. (Harvey & Jowsey, 2007) In the short-run, individual(a) firms behave like a monopoly thus they can raise their prices go away the consumers options to buy similar goods from other firms.As for the long-run, there is a informal entry condition where firms continue to occur in the market deviation the demand curve to continually shift leftward until the time when each of the firm earns a zero economic profit. Firms earn economic profit or loss in the short run, but eventually, new entrants will be attracted to profits thus would result to losses until these firms earn zero econo mic profit. The hand made music box firms will compete in the market for the available consumers that will purchase the goods.