Assumptions: Hugo's Hats produces fashion hats for both male and female customers, price per hat £100. Trades as a Private Limited Company and started trading as an e-business in 1995. Market Structure is the degree of competition the business faces. There are four market structures as illustrated in figure 1. Figure 1 Perfect competition is a theoretical model, it does not exist. It is assumed that there are many buyers and sellers, the goods being sold …
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showed last 75 words of 1562 total
…going to cost Hugo to invest in the cost of advertising and diversifying, however, in the long run, the investment will pay off. Bibliography: Sloman, J. and Sutcliffe M. (2004) Economics for Business, 3rd Edition Harlow: Pearson Education Limited. Office of National Statistics: E-commerce survey of business, 2003 (Online) <http://www.statistics.gov.uk/economy (Accessed on 18/2/2005) BBC News: The US Economy (Online) <http://news.bbc.co.uk/2/hi/business/4230607/stm (Accessed on 18/2/2005)