Obviously, firms producing distant substitutes would be excluded from the purview of the industry. The degree of relationship will depend upon the competitive structure of the industry.
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Long-run demand is that which will ultimately exist as a result of the changes in pricing, promotion or product improvement, after enough time has been allowed to let the market adjust itself to the new situation.
The MBA student, in managerial economics will evaluate the development and outcome from an economics standpoint. The MBA student has the duties of analyzing the external matters. Sales of non-durables are made largely to meet current demand which depends on current conditions.
Illegal Drug Cartels, Impact on and many more it seems as if countries and the United States are always able to somehow pull through it even though they have many horrible memories and sometime even were inolved and have to pull there losses. How does Managerial Economics Differ from Economics?
For example, at an output of 13 units, the average cost is the lowest at Rs. The relationship among total cost, average cost, and marginal cost is shown in Table 3. In the short- run, the question is whether competitors will follow suit; while in the long-run, entry of potential competitors, exploration of substitutes, and other complex and unforeseeable effects may follow.
Short-Run Demand and Long-Run Demand: Short-run demand refers to the demand with its immediate reaction to price changes, income fluctuations, etc.