Commoditiesare interchangeable, and every kind is the same regardless of their source. This means that crude oil from one producer is the same crude oil from another producer. The goods can be combined without
Which type of market (perfectly competitive, monopoly, oligopoly, or monopolistic competitive) provides consumers with the greatest consumer surplus? Which provides suppliers with the greatest amount of producer surplus? Explain. Describe the major features of monopolis...
the demand for all producers’ goods is derived or induced. In addition, even in the realm of consumers’ goods, we may think of induced demand. Consider the complementary items like tea and sugar, bread and butter etc. The demand for butter (sugar) may be induced ...
Regulations are also changing. StrongerExtended Producer Responsibility (EPR) lawsare pushing companies to take more responsibility for their products’ impact on the environment. TheEuropean Union’s Digital Product Passportrequires complete information about each product’s origin, materials, environmental ...
Commodities are similar to regular goods, as they're products that individuals or companies trade. These differ, as commodities often offer the same value regardless of the producer. For example, oil manufacturers produce oil, but the qualities and features of each are similar. This means that ...
Advantages of Price Discrimination Advantages of this pricing strategy can be viewed from the perspective of both the firm and the consumer: The Firm Profit maximization: The firm is able to turn consumer surplus into producer surplus. In a first-degree price discrimination strategy, all consumer ...
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The conventional distribution channel is the most common distribution channel. Conventional distribution comprises of a producer, wholesalers and retailers, all acting independently. This channel ensures flow of goods from producer to the end customers via the wholesalers and retailers.Importance...
The number of steps it takes will make the distribution channel direct or indirect.Let’s visualize a distribution chain to understand the difference between direct and indirect strategy:Where in a direct distribution strategy a producer can access the consumer, in an indirect distribution strategy, ...
GST (Goods and Services Tax) ID GST is a tax in India on goods and services with comprehensive and continuous chain of benefits from the producer’s point and service provider’s point up to the retailer’s level. It’s a tax on only value addition at each stage, and a supplier at ...