Economy, asked by chinnu55, 1 year ago

how firms gain, hold or lose under different market conditions

Answers

Answered by writersparadise
0
The market conditions play an important role in how the firms gain, hold or lose dominance and profits.

There are many market conditions like scale economies, network externalities, and learning-by-doing, which are usually beyond the control of a firm. However, there are other strategies like integration, capacity choices, pre-announcement and tying, that is in the control of the firm.

Many firms follow common strategies like innovating and implementing new technology and protecting it with patents which contributed to their sustained dominance and for maintaining market control.

Many firms are autocratic and therefore, they are unable to respond to changing market conditions, which caused a loss of market control. The presence of arrogant and inflexible management, government interference, etc. also adds to the loss of market control.
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