1. The main difference between the short run and the long run is that: A) firms earn zero profits in the long run. B) the long run always refers to a time period of one year or longer. C) in the short run, one or more inputs are fixed. D) in the long run, only one variable can be fixed. 2. At the level of […]

In economics, we need to use terms a little more carefully than they are sometimes used in ordinary discussions. In general use, “Demand” is a word that can have more than one meaning, but in microeconomics we define it more carefully so that it has only one meaning. Here is the definition: Definition: Demand Demand is the relationship between price and quantity demanded for a […]

Watching the three main actors of the market, H&M, Zara, and Caroll, we saw that Caroll had a problem of positioning within the French market: Caroll was a little bit more expensive and customers were not making any difference of quality between Caroll and its competitors. Then, it is obvious to say that women preferred to go to the competition thinking to have a better […]

Both profile appeal mostly to the emotional side of the people’s minds- to their feelings and sensory function. This profiling approach aims to reinforce the self-concept of the consumers and their aspirations. The approach is ideal for brands that adopt a market-niche strategy, and can be extremely successful if a market segment has a degree of global homogeneity, as is the case with Levis. Non […]

Business in Qatar Should one do business in Qatar? Qatar is a small country in the Middle East. I’ve come to realize that Qatar, just like any other country has it’s poor and plentiful sides. Qatar is a small country with immense expectations for future business with other countries. Let’s start by looking at Qatar’s political and economic standpoint. While Qatar is more of a […]

Undoubtedly, any business which practices buying and selling goods/services will be affected by the external environment in which they operate in. What is a PEST Analysis? PEST analysis is a tool which examines the external environment from a political, economic, social and technological point of view. It is central for businesses to be aware of the potential changes occurring beyond their business activities, as many […]

Political factors that can affect a business include areas such Ecological/ environmental issues, Current legislation home market, Future legislation, European/International legislation, Regulatory bodies and processes, Government policies, Government term and change, Trading policies, Funding, grants and initiatives, Home market lobbying/ pressure groups, International pressure groups, Wars and conflict Economic factors that can affect a business include Home economic situation, Home economy trends, Overseas economies and […]

Dry James Anagram Synopsis The purpose of this work is to examine and understand the main thoughts of prominent economists during the classical period, namely Adam Smith, Thomas Malthusian, David Richard, Jeremy Beneath and John Stuart Mill. It is also included the comparison of ideas between these masters and last but not least, the contributions of these Ideas In today’s context. At the beginning, the […]

Economic Analysis of Asset Prices Introduction The most recent economic crisis, from which the global economy is still reeling, started in 2007, approximately one year after the ‘sub-prime’ housing market in America buckled under its own weight, putting pressure on the financial markets across the world. This economic crisis, argued to be the worst financial crisis since the Great Depression in the 1930s (Brunnermeier, 2009), […]

The main objective of a private firm is to maximize profits and without the control over costs, they try to sell at higher prices. This is true if the operating industry has an inelastic demand schedule as a price rise brings in higher revenue. The Marginal revenue concept states that in order to increase revenues, firms need to lower prices if they are operating in […]