Effect of the Kmart on the Economy-Free-Samples-Myassignmenthelp

Question: Choose any Australian Industry and Provide its detailed Market Structure. Answer: Introduction KMART is a type of retail business industry of Australia (Andrews, Pritchett Woolcock, 2017). It is an imperfect competitive market structure (Chung, Seo Song, 2017). The report gives brief information about the imperfect market and its functions. It concludes by giving the evaluation statement in terms of micro and macro factors of the Kmart. Kmart A retail industry Kmart is a retail industry in Australia that charges low prices for various commodities (De Donoso, 2017). Business transaction takes place through different distributive channels, always aim to fulfill customer demands. Kmart is a departmental retail industry that set reasonable rates for their products. Kmart Imperfect competitive market structure Kmart is an imperfect market structure that consists of various functions in the market. Large buyers and sellers There are many buyers and sellers exist in the Kmart. Each firm is setup with their own price system (Katagiri, 2016). It focuses on maximizing profit and customer satisfaction. Free entry and exit- Kmart enjoys the free entry and exit of the customers and suppliers. They enter the market freely to produce their product for generating output. Exit from the market depends on various factors like consumer demand for the products, prices, or the locality factor. Differences in products- Product differentiation exists in Kmart industry in terms of quality, price, preferences, and brands (Kim Lee, 2017). Price discrimination- Kmart charges different prices for different products. Producers or sellers of Kmart can control the price effect. Price creator- Kmart charge the price on the products while selling in the market. Monopoly power- A monopoly is a single seller in the market selling various products. There are many monopoly exist in the Kmart market. Competitive market- Less competition exists due to price discrimination in Kmart. Seller and market is different from the other seller and the market. Product substitution effect- Different kinds of products exits in Kmart market. Therefore, products closely related to each other in different markets, creates less competition and less rivalry in the market. Short run versus long run- Kmart uses two main periods of production short run and long run. Period of short run includes short scale of production while long run production includes large scale of production. Long run production does not include fixed factors of production (Perdikaki, Kostamis Swaminathan, 2016). In short run, production is fixed and variable and one factor is variable, other remains constant. Kmart is an imperfect market structure, lacks knowledge and inefficient utilization of resources (Ural, 2016). Kmart attains profit when marginal revenue equals marginal cost. As sellers charge their own prices, therefore Kmart achieves short run profit. Market achieves profit when marginal revenue equals the marginal cost. In long run, products are variable. Supply increases with respect to demand for the product. Kmart achieves output when marginal revenue equals the marginal cost. The demand curve becomes tangent to the average cost, firm unable to make profit thereby attains breakeven point. Price determination of Kmart Short run Supplier determines the price rate in Kmart, achieves profit when there is production at a point and the marginal cost equals the marginal revenue. Profit is equal to the differences between the price of the product and the average cost. The profit is equal to the number of goods produced by the firm multiplied by the result. Long run Kmart produces the output when long run average cost intersects marginal revenue of the firm. The quantity achieved falls on the average cost, firm achieves breakeven point that is firm sets a profit creates price determination of Kmart. Entry and exit Market depends on various factors along with consumer demand. Buyers and sellers are free to enter in to market and can exist whenever the producer ors seller wants. Impact of Kmart industry Kmart considered the third largest departmental market globally. Use of modern technology, they produce new commodities, price maker, suffers from inefficiency. It had a dynamic effect on economy due to imperfect market structure Conclusion Kmart is a retail business industry that includes imperfect competitive structure market. It attains profit when marginal revenue equals marginal cost during short run and breakeven point in long run. The economic variables keep fluctuating due to inefficiency in the market. References Andrews, M., Pritchett, L., Woolcock, M. (2017).Building state capability: evidence, analysis, action(p. 288). Oxford University Press. Chung, D. J., Seo, K., Song, R. (2017). Where Should We Build a Mall? The Formation of Market Structure and Its Effect on Sales. De Leon, I., Donoso, J. F. (2017).Innovation, Startups and Intellectual Property Management: Strategies and Evidence from Latin America and other Regions. Springer. JAING, Q. (2016). Pricing strategy.Month. Katagiri, Y. (2016).Firms' decisions to enter a market of highly differentiated products: Apparel industry and New York Fashion Week. City University of New York. Kim, I. K., Lee, Y. J., Yoon, Y. R. (2017). Sequential Supply Decision and Market Efficiency: Theory and Evidence. Perdikaki, O., Kostamis, D., Swaminathan, J. M. (2016). Timing of service investments for retailers under competition and demand uncertainty.European Journal of Operational Research,254(1), 188-201. Ural, O. G. U. Z. (2016).Can competitive advantage be achieved through a single force?: Reviewing market based factors leading to a competitive advantage(Master's thesis, University of Twente).as About Value Creation: Powerpoint Presentation.