Ask Question
BusinessBusiness
1 October, 12:45

Karan works at a shoe store where the latest trends in shoes are displayed. Down the road from his store, two more stores opened up and began selling similar styles of shoes. His store no longer has a monopoly in shoes on that road. What would happen to the price of shoes in Karan's area? A price would happen in Karan's area, because customers now have more options for shoes.

+2
Answers (2)
  1. 1 October, 12:55
    0
    A price WAR would happen ...
  2. 1 October, 13:31
    0
    A price war would happen in Karan's area, because customers now have more options for shoes.

    Explanation:

    Before two more shoe opened up, the shoe store where Karan works was a monopoly. In economics, monopoly market is a market where there is just only one seller who can charge an abnormally high price for its product as there are no other seller in the market.

    The opening up of two more stores that began selling similar styles of shoes as Karan's Shore Store will bring about a Perfect Oligopoly.

    A perfect oligopoly exists when there are two or more but less than 20 firms/sellers who sell identical products in a industry/market. As a result, each firm/sell must consider the price charged by the other firms/seller before setting its own price. This will lead to a price war and will make the price of the product, in this case shoe, to fall.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Karan works at a shoe store where the latest trends in shoes are displayed. Down the road from his store, two more stores opened up and ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
Any insurer who engages in the insurance business and violates the code with respect to insurance replacement shall on the first violation. A) Be fined a sum of $10,000. B) Be fined a sum no less than $30,000 and no more than $300,000.
Answers (1)
Sacha purchased land in 2010 for $35,000 that she held as a capital asset. This year, she contributed the land to the Boy Scouts of America (a charitable organization) for use as a site for a summer camp.
Answers (1)
Anne has been working nights and weekends to get a project completed at work. she is successful, and a couple of weeks later she comes into work and her boss presents her with a bonus check. this best illustrates the value of
Answers (1)
Which of the following statements is TRUE of payback period? A. If the payback period is greater than the maximum acceptable payback period, management should be indifferent. B.
Answers (1)
The Contra Costa Times Company reported a $17,200 liability in its 2021 balance sheet for subscription revenue received in advance.
Answers (1)
New Questions in Business
Adel wrote Abdullah, "I will sell you my house and lot at 419 West Lombard Street, San Francisco, California for $950,000 payable upon merchantable deed, deal to be completed within 60 days of the date of your acceptance.
Answers (1)
Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior and Pro Striker models.
Answers (1)
When a country that imports shoes imposes a tariff on shoes, buyers of shoes in that country become worse off. a. true b. false?
Answers (1)
The price for cigarettes sold by Big Tobacco Co Ltd was 6.00 per packet in March 2018. During the month of March, the consumption of cigarettes was 1000 packets.
Answers (1)
Services had net income for the month of October of $ 23 comma 040. Assets as of the beginning and end of the month totaled $ 369 comma 000 , and $ 399 comma 000 , respectively. Calculate Matured Water Services' ROA for the month of October.
Answers (1)
Home » Business » Karan works at a shoe store where the latest trends in shoes are displayed. Down the road from his store, two more stores opened up and began selling similar styles of shoes. His store no longer has a monopoly in shoes on that road.
Sign Up Forgot Password?