MIcro and Macro Economic Analysis Assignment Example | Topics and Well Written Essays - 1250 words

Smaller scale and Macro Economic Analysis - Assignment Example Theories in the costs of oil makes the interest rise or fall in different seasons. For instance, oil items are enormously requested in nations encountering winter since they are utilized for warming purposes. Then again, the flexibly of oil based commodities is predominantly reliant on the costs of unrefined petroleum, innovation and the accessibility of qualified work force to separate the items. It is likewise exceptionally reliant on the political insecurities winning in OPEC nations (Etro, 2009). These nations normally have control on the flexibly and valuing of the item around the world in this way influencing the profitability’s of numerous oil organizations. b) Explain The Market Structure In Which The Chosen Company Operates With Regards To The Chosen Product The British Petroleum Company is found in the oligopoly structure of the market. This is on the grounds that there are less dealers of the items around the world. They are additionally profoundly delicate to diffe rent organizations valuing alongside their systems of advertising. In this market structure it turns out to be hard for new participants to join the market. The venders in this market structures are consistently mindful of the systems that their rivals are utilizing. There are a few contenders for the organization who have branches all around the world however there are numerous limitations that have been set to bar contestants into the business. Managing in oil based commodities additionally requires high capital and is likewise an exceptionally hazardous business because of the dangers in question (Dunn and Mutti, 2004). c) Explain What The Company Can Do To Continue To Operate In This Profitable Market Structure Or Move Towards A More Profitable Or Sustainable Market Structure In request to keep working gainfully in this market structure, the British Petroleum Company needs to receive progressively effective advancements that guide in their investigation endeavors for more curren t wellsprings of oil. The organization should additionally put resources into the investigation of non-traditional crude materials since the present sources are in extremely popularity and are approaching consumption. For instance, the organization can put resources into investigating more into the field of oil sans which could yield a great deal of undiscovered assets. These measures will in the end help the organization in countering the vulnerabilities that fill the evaluating of raw petroleum. For instance, the ongoing non military personnel uprisings in the Middle East extraordinarily influenced the costs of oil far and wide driving some exchanging organizations into experiencing misfortunes (Mankiw, 2011). d) Comment On The Different Elasticity Concepts That Can Influence The Pricing Strategy Or The Competitiveness Of The Chosen Product/Company. The item is influenced by different flexibility variables of interest and gracefully. The flexibility of interest that generally infl uence the items are the value versatility, pay flexibility and cross flexibility between various organizations. The value flexibility typically alludes to the adjustments in the amounts of the items requested according to the adjustments in the costs of the items. The salary versatility mostly alludes to the progressions that the organization encounters in its pay comparable to changes in the interest of oil based goods. The British Petroleum Company is additionally extraordinarily influenced by the cross versatility that exists between various firms (Gwartney, Stroup, Sobel and MacPhearson, 2008). This sort of flexibility is liable for estimating the