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notka56 [123]
1 year ago
10

Assume the lunch plate industry in Oahu, a perfectly competitive industry, is in long-run equilibrium with a market price of $5.

If demand for lunch plate increases and this industry is a decreasing-cost industry, long-run equilibrium will be reestablished at _______ price.
Business
1 answer:
Wewaii [24]1 year ago
7 0

Answer:

Explanation:

The lunch plate industry in Oahu is a perfectly competitive industry.  

This industry is also a decreasing cost industry. A decreasing cost industry can be defined as the type of industry where an increase in the number of firms in the industry causes the average production cost to decline.  

The industry is currently in long-run equilibrium and has the price level at $5.

As the demand increases, the price level will initially increase. But this increase in the price will cause the profits to increase and thus attract potential firms to join the market.  

As the number of firms increases the average cost of production will decrease. As a result, the supply in the market will increase more than the demand.  

So the long-run equilibrium will be reestablished at a lower price than earlier.

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1. Sony has 12 core segments in its business. Is this too many or not enough? Are today’s companies diversified like they used t
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Answer:

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High tech companies generally tend to diversify a lot because they need to continuously produce innovative products or improve their existing ones. E.g. Google got so large and diversified that it turned into Alphabet which owns more than 200 companies (most of them through acquisitions). Sony's largest revenue sources are gaming services, financial services and home entertainment.

When we think about Sony we probably think about consumer electronics, the Playstation or even movies, but in order to be profitable, Sony had to expand and diversify. Sony's revenues are shifting from consumer electronics to services (including financial, gaming, network, music and movies), so that means that their diversification model actually worked.

2) Sony's goal with Future Lab is to create customer value and new lifestyles, whether they are able to do so depends on how well they work it out. Future Labs is based on San Francisco, and it should serve as a place where innovative prototypes should be tested by real users. The goal is that Sony can learn from actual real life user experiences in order to improve their products and services. The real life customers and users that want to participate in Sony's program must pay a fee for doing so, but they can also experience prototypes before anyone else.

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Answer:

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Answer:

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