The competitive threat that outsiders will enter a market is weaker when the incumbents enjoy substantial cost advantages.
The competitive threat that outsiders will enter a market refers to the possibility that new firms will enter a market to compete against existing firms. It is the degree of competition in a market that is determined by the ability of other companies to enter the same market and offer similar goods or services at a lower cost.
There are certain factors that determine the competitive threat of outsiders, these are:Ease of Entry: When the cost of entering a market is low, the threat of new entrants is high and vice versa.Brand loyalty: In markets where consumers are more loyal to the existing brands, the competitive threat of new entrants is weaker.
Patents: In markets where incumbents hold many patents, the competitive threat of new entrants is weaker.Cost advantage: The competitive threat of outsiders is weaker when incumbents enjoy substantial cost advantages.Cost advantage is the answer to your question.
The competitive threat that outsiders will enter a market is weaker when incumbents enjoy substantial cost advantages.
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Draw a production possibility frontier for a society that's produces shoes and clothing using 10 units of labor and indicate the point of efficient and inefficient or combination
To draw a production possibility frontier (PPF) for a society that produces shoes and clothing using 10 units of labor, we need to assume a simplified scenario where the society can allocate its labor between the two goods.
Let's assume that society can produce shoes and clothing with the following labor requirements:
Shoes: 2 units of labor per unit produced
Clothing: 1 unit of labor per unit produced
To construct the PPF, we can vary the allocation of labor between shoes and clothing and observe the maximum output combinations.
Here is an example of a PPF with labor (input) on the x-axis and output (shoes and clothing) on the y-axis:
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Efficient
The curve represents the production possibility frontier. Points on or below the curve represent achievable combinations of shoes and clothing, given the available labor. Points above the curve are unattainable with the given resources.
The point on the curve labeled "Efficient" represents the combination of shoes and clothing that maximizes output given the available labor. It reflects the most effective use of resources.
Points below the curve, such as the one labeled "Inefficient," represent combinations where resources are not fully utilized, resulting in lower output levels. These combinations could indicate the underutilization of labor or inefficiency in production.
Please note that the actual shape and position of the PPF can vary depending on various factors, such as technological advancements, resource availability, and the specific production processes for shoes and clothing. The example provided here is a simplified representation to illustrate the concept of a PPF.
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Project financial management description
Project financial management involves the planning, monitoring, and control of financial resources within a project to ensure its successful execution.
What does project financial management cover ?It encompasses various activities and processes related to budgeting, forecasting, cost estimation, financial analysis, and reporting.
In the initial stages of project financial management, the project team collaborates to develop a comprehensive budget that outlines the estimated costs of resources, materials, labor, and other project-related expenses.
Regular financial reporting is also an essential component of project financial management. Project stakeholders, including senior management, investors, and sponsors, rely on accurate and timely financial reports to assess the financial health of the project.
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