Mind map
PROFIT SIGNALLING MECHANISM
Mind map: profit signalling mechanism
Map content
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
- SUPPLY INCREASES
- COMPETITION WILL INCREASE IN THIS MARKET
- RESOURCES CAN BE ALLOCATED INTO THE PROFITABLE MARKET
- HIGH PRICE CAN BE CHARGED
- WHICH MEANS DEMAND FOR P AND S ARE NOT SATISFIED
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
- RESOURCES OF A BUSINESS CAN BE REALLOCATED IN THIS MARKET
- CONSUMERS UNSATISFIED(DEMAND RISES)
MONOPOLY POWER
- SUPERNORMAL PROFITS
- HIGH BARRIERS TO ENTRY
- SUPERNORMAL PROFITS
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- Description
- A-level ECONOMICS AND BUSINESS STUDIES Mind Map on PROFIT SIGNALLING MECHANISM, created by julierubio0216 on 02/04/2014.
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- julierubio0216
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