What are goods in competitive supply?
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) Differentiate between joint supply and competitive 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 the example of competitive demand?
(b)i)Competitive demand: Some goods compete with each other in the sense that they serve the same purpose. Such goods are in competitive demand, for example, tea and coffee, meat and fish. (ii) Joint demand: Sometimes, two goods have to be necessarily used together. Such goods are in complementary or joint demand.
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 difference between competitive demand and joint demand?
Competitive Demand means You can derive equal satisfaction from either product e.g. substitutes like jam and marmalade. Therefore jam and marmalade are in competitive demand. goods in joint Demand a consumer will require Both For maximum consumer satisfaction e.g. Complements like cars and tyres.
What are the types of supply?
The law of supply explains the reaction of the supplier when the prices in the market change. Market supply, short-term supply, long-term supply, joint supply, and composite supply are five types of supply.
What is exceptional supply?
An exceptional supply is one of three types of supply curves: 1. the supply is infinite, and the supply curve is horizontal. This could be the supply curve of a commodity (ie, gold – the price of gold is th…
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 are examples of competitive markets?
A great example of competitive market is farming. There are thousands of farmers and not one of them can influence the market or the price based on how much they grow. All the farmer can do is grow the crop and accept whatever the current price is for that product.