Importance And Role Of Economic Information Essay

Importance And Role Of Economic Information - Essay ExampleThis mutual reasonableness is for the reason that businesses do non require to end up in damage wars among competitors that ultimately eludes the positivity of the businesses. Owing to the interdependence and resulting monetary value stickiness characteristic of industry, the demand for the product turns elastic in case the price is augmentd as correspondd to industry participants. If the competitors will attempt to increase the price as compare to different participants and this will result in losing revenue as demand will switch to other competitors. fleck in case of lowering price customers show inelasticity as all industry participants reduced price taking all firm to competitive arranges again. Even in case of a high increase in marginal hail, the considerably low impact has to be transferred to customers. Since profit is maximized at a post where marginal cost equals marginal revenue therefore as long as marg inal cost cuts marginal revenue in vertical position price will remain at P. Further, in case MC cuts marginal revenue vertically the price is retained same and a usefulness is not passed on the customer.Further, competition is supported in other aspects such as branding, services true statement etc, ABB has unquestionable a competitive advantage with fast delivery services supported by online operations as compared to competitors in certain areas in order to retain differentiation from competitors. Other competitors based on respective(prenominal) capacity compete on aspects such as quality or differentiated crease of products offered.... Further, incase MC cuts marginal revenue vertically the price is retained same and benefit is not passed on the customer. Further, competition is supported in other aspects such as branding, services accuracy etc, ABB has developed competitive advantage with fast delivery services supported by online operations as compare to competitors in cer tain areas in order to retain differentiation from competitors. Other competitors based on respective capacity compete on aspects such as quality or differentiated range of products offered. all(a) these factors ensure increasing barrier to entry for new entrants while retaining competition. Therefore, securing industry from competition authorities to efflorescence participants with accusation of cartelization practice that is followed in oligopoly. Hence, being abreast not only with respective business position economically ABB has to remain updated as well as linked with the strategies of competitors to retains the competitive business positions. IMPORTANCE AND mapping OF FINANCIAL INFORMATION Financial information and respective understanding forms the back bone of the business. Importance of fiscal information is not only circumstantial for top management that are concerned for decision fashioning with respect overall business goals but at the same time financial information is critical for every department (Brealey, Myers, Allen, & Mohanty, 2007). For instance, marketing departments investment in the advertisement and sales pass are concerned to fetch sales that add considerably to profitability. Similarly, HR department also evaluates deed of departments, respective employees and comparison of efficiency of company employees with other