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709372
PROFIT SIGNALLING MECHANISM
Description
A-level ECONOMICS AND BUSINESS STUDIES Mind Map on PROFIT SIGNALLING MECHANISM, created by julierubio0216 on 02/04/2014.
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economics and business studies
economics and business studies
a-level
Mind Map by
julierubio0216
, updated more than 1 year ago
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Created by
julierubio0216
about 10 years ago
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Resource summary
PROFIT SIGNALLING MECHANISM
HIGN PROFITS ARE MADE IN A MARKET
WHICH MEANS DEMAND FOR P AND S ARE NOT SATISFIED
RESOURCES CAN BE ALLOCATED INTO THE PROFITABLE MARKET
COMPETITION WILL INCREASE IN THIS MARKET
SUPPLY INCREASES
PRICE DECREASES
HIGH PRICE CAN BE CHARGED
LOW COMPETITION
HIGH PROFTS
LOWER CONSUMER CHOICE
CONSUMERS UNSATISFIED(DEMAND RISES)
RESOURCES OF A BUSINESS CAN BE REALLOCATED IN THIS MARKET
HIGH PRICE CAN BE CHARGED
MONOPOLY POWER
SUPERNORMAL PROFITS
HIGH BARRIERS TO ENTRY
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