Since the first manufacturer can produce the treated lumber without any additional input, they have absolute advantage over the other manufacturer and can be a price setter within the domestic market. The other manufacturer is limited by the amount of lumber it can purchase but has a better treatment facility so it cost less for them to treat their lumber. In this sense the second manufacturer has comparative advantage in producing treated lumber but their resources are limited by how much is harvested within the domestic market and thus they are price takers. However, suppose America opened trade relations with South America, a country with relatively low population density with desperate need for medical supplies and computer technology but covered with deep thick jungles. This new source of lumber is cheaper to harvest due to the massive quantities that allow the second manufacturer to stop buying the limited amount of lumber within its domestic market.
Discussion 1 – whole Foods Text – Accounting and Taxation – 2/2/15 issue 1. Why does Whole Foods have a higher profit margin than more traditional grocers? Whole Foods was able to sell at a higher profit margin compared to other more traditional grocers is because of their “value and values” of fresh produce food they sold to their loyal customers. Before eating healthy and loosing wait became a trend, Whole Foods was the only grocery store that sold fresh food for a higher price. The combination of low competition and market up prices, Whole Foods was able to make more profit than other traditional grocery stores.
Therefore manufacturers make bigger profit. As well as that, there are fewer factory regulations at sweatshops because the health and safety regulations aren’t as important in LEDC’s, that way it makes it cheaper to run the factory. As well as that, renting and buying the factory is cheaper too because the economy of LEDCS are weak the demand of buying property is low because not many people can afford it therefore buildings and houses are worth less because of low demand. Another reason clothes are manufactured in LEDCs is because there is less tax to foreign government, therefore there is a bigger profit for the manufacturers. Because LEDCs have a weak economy, there are very few
All of those factors allowed Telmore to significantly save on its operations and have lower break-even level, and provide ‘no-frills’ service as lower price, which gave it its competitive advantage over TDC. Hence, even though Telmore has to bought the minutes from TDC to resell to its customers, it had an advantage due to its unique offering and lean cost structure. In general, who will benefit from the regulation that forces operators to open their network to competition? * Consumers * Entrants * Incumbents If you were an incumbent operator such as TDC, would you grant access to a no-frills service provider if you were not required by the legislation to do so ? * Yes, because * No, because TDC could allow a company such as Telmore to develop a new customer base, which might be also consisting of migrating customers from other operators and providers, and
Other factors can include Gutters and Drains quickly taking water to the rivers. Pakistan however does not suffer from this problem as they have a low economical climate which lead then to have dirt roads for example. Although Pakistan has little economic activity this has spurred them to cultivate and gather resources such as using the surrounding trees to use for biomass (energy). Economic impacts in Cumbria (MEDC) will be higher than Pakistan (LEDC) due to the high value buildings and infrastructure. However the relative economic impacts will be lower for Cumbria and higher for Pakistan.
Keeping the weight down and only including necessities, is what keeps the price much lower and the speed higher. Although the Dodge viper would be faster in long straights the Elise is much quicker around corners. The downside is that the Elise is a lot less comfortable, and not so convenient to drive every day. But that is what you pay for if you want to have such an exciting car at a low cost. At first glance you would probably expect the Elise to cost about $100,000.
Given that ice cream is seen as an affordable treat as opposed to a luxury good, Oakville’s higher median income is an irrelevant fact. When analyzing which market segment to target (Exhibit 2), families have been found to have to the greatest potential to succumb to promotional efforts as they enjoy family outings and are most likely to participate in the catering services provided. Marble Slab Creamery gives complete price flexibility to its franchisees if they desire to implement a catering segment. As shown in Exhibit 3(a), Penny should employ this tactic as an additional revenue stream as the costs associated with catering are relatively low in comparison to its revenue potential. With the expectation of 52 events per year, it will only take 56 ice cream sales per event to breakeven; not a difficult task for such
This act increased the price of imported goods because imported goods were much cheaper than those in the United States. The Northerners embraced this tariff as they benefited economically from it. The Southerners detested the tariff because their economy relied on farming and trade. This lead to discourse between the North and the South and this is just one of the many examples of a cause of the American Civil War. The North had many advantages for the outcome of the Civil War because the North had better technology, naval power, and a better economy.
A nationally branded sock would ensure higher margins and profitability for the company. However, the major barrier to creating a branded product was the minimal scope for product differentiation in the market. To overcome this problem, Chipman-Union decided to go with an odor-eater socks and also hired a management consultant firm, GFM to advise on the various alternatives and the marketing program. The results of consumer research showed that consumers were willing to pay more for the “odor-eating” characteristic of the socks. Thus, the market potential of odor-eating socks was found to be huge.
Since the revenue generated from the member businesses is a function of size, the profit margin derived from a Bucket 1 business is significantly smaller than that derived from a Bucket 3 or 4 business. Therefore, the company changed the contract to help it realize more meaningful profit on its member businesses. The new contract is beneficial to the chamber because the modified sales commission system encourages more sales from Bucket 3 and 4 companies. However, it does not serve as a reasonable incentive for Noah to generate more sales. The time and effort put into Bucket 3 and 4 companies will be significantly more than that from Bucket 1 and 2 companies.