However, the similarities between these contiguous yet independent countries would end right there. Currency values and format would make dining in one European country more favorable than ordering ostensibly the same meal in a bordering country. The restaurant and soft drink industry in Europe is more competitive than what is to be expected to be found elsewhere in the world because of the relative changes in currency value and the level of interaction of travelers between different countries and the exchange of currency exchange and the velocity of money. The most popular restaurants do remain where tourists are able to frequent such as France, Italy, and the Czech Republic.
Economics from my point of view. Originated from Korea and now is expanding worldwide. Samsung specializes in digital appliances ranging from smartphones and televisions to microwaves and refrigerators, memory, semi-conductors and system integration Samsung, Samsung's Long Run Production Samsung is currently in the long run where all of its factors of production are variables and can be subjected to change.
Samsung has achieved economies of scale as they are financially very stable and strong which means they have enough capital to invest in more inputs to further increase in production.
Also, they have large plants and factories around the world to accommodate their production and where they produce their own memory chips and flat screen sectors thus they Micro economin study of nokia market able to decrease their unit production costs instead of importing or outsourcing the spare parts from other suppliers states the senior executive of Samsung Electronics Kim, Samsung has the potential to achieve economies of scope with its AMOLED display which is a high quality slim display with clearer images and is less power consumption compared to traditional screens.
In addition to that, Samsung owns large machines and high amount of labor to produce their smartphones and other electronic goods. Not only that, Samsung also has its own system integration such as the Android OS and as a result of that they do not need to purchase an OS and this is able to reduce their input costs as well unlike HTC who do not own their own OS as they are considered small producers of the smartphone industry, Schuermans, they have to bare costs such as licensing and operating fees in order to own the Android OS.
Understanding how microeconomics affects the marketplace is essential for any investment professional, however most books simply address microeconomics in its pure theory-based form. Micro Markets helps bridge the gap between theory and practice by defining microeconomics in terms of real-world, market applications. Microeconomics is the branch of economics that analyzes market behavior of individuals and firms in order to understand their decision-making process. This statistic shows the global smartphone market share held by Nokia each quarter from to In the third quarter of , Nokia's market share was percent. Market research More.
Recently, Samsung decides to switch the raw materials used in producing Samsung Galaxy phones in which plastic is being replaced with metal Lee, H. The reason why it was replaced is because metal brings a more prestige and higher class value in terms of outlook and feel which is why Steve Jobs insisted all iPhones to be made with metal to bring a futuristic feel to its customers Lee, H.
This implementation is only subjected to Samsung Galaxy premium smartphones Lee, Micro economin study of nokia market. Thus they are able to transfer the increase in production costs to the customers since metal is more expensive than plastic.
This is a conditional subsidy which is a RM rebate and is subjected to customers who are years old and with a monthly income of less than RM Krishnan, This subsidy was put in place is to offer the youngsters an easy access of information through the smartphones The Star Online, Thus when subsidy is given to consumers, price decreases and they are now able to purchase the smartphones.
Due to the financial constraint as their monthly income is less than RM and most smartphones range from RM — RMsmartphones can be viewed as a luxury item to this group of people. As a result of that, the elasticity of demand for smartphones for the target group is highly elastic.
Unfortunately, the subsidies allocated are subjected to a price cap of RM which means consumers can only purchase smartphones which are priced RM and below Krishnan, As a result of this, the supply curve shifts rightward, taking opportunity of the gain revenue from the subsidy as shown in Figure 1.
S1 represents the RM subsidy given by the government. After the rightward shift, price of an average smartphone Pdecreases by RM down to P1.
It is now a trend to own a smartphone where worldwide smartphone usage is expected to reach 1. Since everyone is demanding for smartphones, why Samsung?
Also, Samsung users are loyal to their brand in which it brings in positive effects where smartphone users would only purchase Samsung smartphones and no other brand.
Samsung currently holds the top spot in brand loyalty for smartphones reported by Brand Keys Tode, What is the smartphone industry market structure like? In most oligopoly cases, there are high barriers to entry mainly caused by high scale production or the strong branding of the dominant firms Blink and Dorton, ; Samsung and Apple.
Inbarriers of entry to the market was lowered as Android was launched to provide a free platform for other firms to enter the industry as Android is an operating system Schuerman, which allows one to download and use applications which is one of the main features of the smartphone.
Despite the barriers of entry being lowered, competition among firms are high especially the small firms trying to compete with large firms such as Samsung and Apple as they have achieved economies of scale and build strong brand loyalty and recognition. The key element in all oligopolies is that there is interdependence.
This is different from perfect competition and monopolistic competition where all the firms are too small in the market and thus they are unable to influence the market as how oligopoly is able to.
The Principles of Microeconomics examination covers material the different market structures and analyze the behavior of firms macroeconomics and the other microeconomics. A companion study guide/workbook is available for most textbooks. The study. Differences Between Macroeconomics and Microeconomics. Macroeconomics. Macroeconomics: The study of the performance, structure, One of the major goals of microeconomics is to analyze the market and determine the price for goods and services that best allocates limited resources among the different alternative uses. Microeconomic analysis attempts to explain the behavior of individuals and organizations in a given economy. Before being able to understand macroeconomics, or national and global trends for indicators like Gross Domestic Product, it is helpful to know how economics works on a small scale.
A few numbers of large firms dominating the industry takes careful notice of what other firms are doing as interdependence tends to make firms collide to abstain from surprises and unexpected outcomes Blink and Dorton, However there are situations where firms compete vigorously to gain greater market share such as Samsung and Apple.
Since Samsung and Apple compete with each other head to head at all times, a tacit collusion emerges as competitors may charge the same price Blink and Dorton, In this case, the firms act as a monopoly where they become the price makers and make monopoly profits and these profits are shared according to the market share Blink and Dorton, Samsung being the dominant firm gets the larger share of profits while Apple not too far behind shares the remaining with the other smaller firms such as HTC, Nokia and Blackberry.
Since all the firms are in an oligopoly industry, there are only a few firms to compete with and thus all firms are able to make supernormal profits as shown.
The demand curve shifts to the left due to other firms competing to obtain the market demand and profits thus Samsung's supernormal profits are highlighted in the purple area as shown in Figure 1.
As more and more firms enter the industry, the demand curve will continue to shift to the left and this it will subsequently reduce the firm's supernormal profits. How will Samsung stay at the top of the pyramid of the oligopoly market?Micro Economics Test 3 Study Guide Chapter Types of market structures o Perfect competition: An extreme market structure.
Many suppliers offer an identical product, and in the long run, entry and exit erase economic profit. o Monopoly: An extreme market structure. Microeconomic analysis attempts to explain the behavior of individuals and organizations in a given economy.
Before being able to understand macroeconomics, or national and global trends for indicators like Gross Domestic Product, it is helpful to know how economics works on a small scale. AP Microeconomics Review Page 2 4. Negative Externality showing that too much is being produced at too low of a price 5.
Positive externality showing that too little is being produced at too low of a price 6. Monopsony Labor Market with comparison of workers hired and wage rate in a p.c.
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economics. Whether you’re studying macroeconomics, microeconomics, or just want to understand how economies work, we can help you make sense of dollars. Our study guides are available online and in book form at heartoftexashop.com Nokia's expenditure on research and development from to (in billion euros) bn USD Nokia's market share in IT networks % Networks service provider market share of Nokia.