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PROFIT SIGNALLING MECHANISM

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A-level ECONOMICS AND BUSINESS STUDIES Mapa Mental sobre PROFIT SIGNALLING MECHANISM, criado por julierubio0216 em 02-04-2014.
julierubio0216
Mapa Mental por julierubio0216, atualizado more than 1 year ago
julierubio0216
Criado por julierubio0216 mais de 12 anos atrás
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Resumo de Recurso

PROFIT SIGNALLING MECHANISM
  1. HIGN PROFITS ARE MADE IN A MARKET
    1. WHICH MEANS DEMAND FOR P AND S ARE NOT SATISFIED
      1. RESOURCES CAN BE ALLOCATED INTO THE PROFITABLE MARKET
        1. COMPETITION WILL INCREASE IN THIS MARKET
          1. SUPPLY INCREASES
            1. PRICE DECREASES
      2. HIGH PRICE CAN BE CHARGED
      3. LOW COMPETITION
        1. HIGH PROFTS
          1. LOWER CONSUMER CHOICE
            1. CONSUMERS UNSATISFIED(DEMAND RISES)
              1. RESOURCES OF A BUSINESS CAN BE REALLOCATED IN THIS MARKET
                1. HIGH PRICE CAN BE CHARGED
          2. MONOPOLY POWER
            1. SUPERNORMAL PROFITS
              1. HIGH BARRIERS TO ENTRY

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