Please help with this question- thank you!:
Nipper’s Hot Dog Stand has just opened on Main Street in Canandaigua, NY.
Nipper’s is the only such stand in Canandaigua and he is making a fortune.
Nipper’s audited income statement reports that he is generating $175,000 in annual profits.
People are beginning to notice his financial success; Nipper can’t keep his success a secret.
So considering how a free market economy works … provide a post that will answer the following questions:
1) Will Nipper continue to generate such great profits?
2) What will likely happen to the number of hot dog vendors on Main Street within the next year?
3) What will Nipper have to do to continue earning such high profits?
4) Do you think there will be only one hot dog vendor on Main Street after three years? Why?
Categorized | Affiliate Marketing 101
Economics Questions Please Help?
Posted on March 24, 2013.
1) Not likely, because where success is noticed, other people try and take their share. More vendors are likely to open to cash in on the success.
2) The number of Hot Dog vendors is likely to increase
3) Nipper will have to adapt, revolutionise and offer new products/ services in order to keep him ahead of the competition.
4) As people notice his success at his business, they are likely to try and copy him and open up their own vendors. However, after three years, any businesses that were inadequate and were rushed into the business would have been killed off as they would have to compete with Nipper who was experienced and well-established.
Hope I heeelped