Goods in competitive supply are alternative products a firm could make with its resources. E.g. a farmer can plant potatoes or carrots using essentially the same factors of production. The opportunity cost of using land for one crop might mean sacrificing production of another in each growing period.
What is the difference between competitive supply and joint supply?
(b) Joint supply occurs when two or more commodities are produced and supplied from one source such that the supply of one commodity will lead to the supply of the other(s). Competitive supply on the other hand occurs when a commodity has alternative uses.
What is composite supply in economics?
What is a composite supply? When two or more goods and/or services are combined to make a bundle, it is known as a composite supply. The composite supply includes a main or principal component which is essential to the purpose of the bundle.
What is the example of competitive demand?
Competitive demand occurs when there are alternative services or products a customer can choose from. From a business’s perspective, they can use fluctuations in the price of their competitors to determine how their own will sell. An example of this is between name-brand and store-brand medicine.
What is competitive supply with example?
Competitive supply is a term used to describe a situation where more than one product can be produced from the same factors of production. For example, a farmer could use his land and labour to produce two different crops – in producing one crop, the factors used cannot then be used to produce the other crop.
How does competitiveness affect supply?
Competition can constrain buyers and sellers to be price-takers. The interaction of supply and demand determines a market equilibrium in which both buyers and sellers are price-takers, called a competitive equilibrium. Prices and quantities in competitive equilibrium change in response to supply and demand shocks.
What makes a company competitive in the supply chain?
Loading… Supply chain can be a major strategic asset to support a company’s competitive positioning. There are essentially four primary bases of competition — innovation, quality, customer service, and cost — all of which have significant supply chain implications.
What are goods and services in competitive supply?
Competitive Supply. Share: Goods and services in competitive supply are alternative products that a business could make with its factor resources of land, labour and capital.
Who is most likely to sign up for competitive supply?
The report also found that low-income consumers are more likely to sign-up for competitive supply and are more likely to be charged higher rates.
Is the electric supply market competitive in Massachusetts?
The Attorney General’s Office has found that Massachusetts residential consumers pay high rates for competitive electric supply. Learn more about the competitive electric supply market and find resources to help with questions or problems.
