Please explain this to me for the better understanding Suppliers such as your local water
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Please explain this to me for the better understanding
Suppliers such as your local water
suppliers, railroad, restaurants, coffee shops, hairdressers, artists, gas stations, movie theaters, airlines, universities, and so forth, operate under different market structures. All businesses exist for one purpose, which is to make profits. Profits or losses occur as a result of interaction between cost of production and market price. Higher production could lead to higher revenue; however, higher prices reduce quantity demanded and might lead to higher cost of production. In sum, suppliers and producers will make profit only when average total cost of production is lower than market price.
Provide an example of a firm or a small business from the real world that is surviving the dynamic nature of monopolistic competition, and discuss some approaches they have used (or are currently using) to compete and survive in the market.
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