Being a student of economics, you’re required to identify the market structure category in which this Khaadi brand falls. Justify your answer by applying any two key characteristics of that market structure on the given industry.
Answers
Answer:
This question is mainly a part of "Chapter 9" from Economics and it is named as " Marketing of Khaadi Products".
Explanation:
The justification are as follows:
The overall income is distributed in the form of wages to people who work to produce khaadi products.
However this income is distributed among the total number of workers who are either involved in weaving khaadi product to give them their finished form or are involved in spinning.
In terms of cost analysis, there are a number of factors like Insurance, Incentives, Welfare grants, Bank interests etc as expenses and the seller has to bear all costs alone even though he receives subsidy against all of these.
On the other hand, in case of hand loom sector or products, the profit margin is much higher than Khaadi. This is the main reason of drop down of market structure and also the reason why khaadi brand has fallen down.