You are the manager of a small U.S. firm that sells nails in a competitive U.S. market (the nails you sell are a standardized commodity, stores view your nails as identical to those available from hundreds of other firms). You are concerned about two events you recently learned about through trade publications: (1) the overall market supply of nails will decrease by 2 percent, due to exit by foreign competitors, and (2) due to a growing U.S. economy, the overall market demand for nails will increase by 2 percent. Based on this information, should you plan to increase or decrease your production of nails? Explain.
Paper#29289 | Written in 18-Jul-2015Price : $22