ECONOMICS

Cyclone Yasi drives up banana prices

Cyclone Yasi drives up banana prices

Introduction

The study is related to Cyclone Yasi drives up banana prices, it is observed that the overall, perfect competition is a kind of competition that characterizes a market, which is also considered (by many economists and marketers) as a type of market or market model. From the perspective of economic theory, perfect competition is the most convenient market situation, it is the only one that achieved an efficient allocation of resources in society, because it produces the amount by which the price equals the marginal cost.

Discussion

In relation to cyclone Yasi drives up banana prices, perfect competition is a type or model of market in which there are many sellers and buyers who are willing to sell or buy products freely between them are uniform or equal in a given market (like the market for copper, wood, wheat or other commodities, agricultural commodities, financial securities or products that are well known and standardized), but no distinct influence on the selling price because it is so impersonal set by the market in which the information circulates perfect way so that buyers and sellers are well informed. With reference to cyclone Yasi drives up banana prices, additionally, this type of market vendors do not devote much time to develop a marketing strategy or to implement activities related to it, such as market research, product development, pricing and promotional programs, because they play a negligible role or none at all. Finally, taking into account the conditions described above, the sellers have a demand curve horizontal or perfectly elastic (Walter, 2006, 11-28).

Unlike what some believe, perfectly competitive markets are not a mere "idealism" of the market situation more convenient (from the perspective of economic theory), but a reality in which they operate many companies and many more who will be entering in the near future (because of the high degree of penetration that has been taking the internet and the effect it is making in the lives of people and the daily activities of corporations and organizations). Thus, marketers are required to study in depth this issue for more details about this type of competition, to thereby be better able to make the right decisions to meet the challenges posed by today and that pose in the near future, perfect competition (McConnell, 2011, 7-19).

In context of cyclone Yasi drives up banana prices, in a perfectly competitive market equilibrium is achieved by meeting market demand (the sum or aggregation of demand for each consumer) and supply industry (sum or aggregation of the supply of each of the companies working in this market).

Balancing perfectly competitive market, it is treated as the price that equals the quantity demanded with that offered, that is the point where supply and demand are exactly alike But Different deadlines for defining the balance. The "short term" as it implies that the factors used in production that is land, labor and capital are constant and the production cannot be altered along with the ...