Saturday, September 22, 2018

Economic Concepts Applicable In BATA

BATA

Perfect competition-  Bata has a market situation of perfect competition ,where there are large number of buyers and sellers buying and selling homogenous products .

No barriers to entry or exit -In perfect competition Bata has no barrier to entry or exit from the market.

Cost and benefit- cost and benefit has to do with rational Expectations and rational choices people are likely to make the choice that has the most benefit to them with the least cost. Bata  provides benefits to its customers more than the cost that the customer incurs.

People respond to incentives-  whenever there is a sale in Bata the demand for the shoe rises because people respond to any kind of incentive. Here people respond to the incentive of discount

Utility- It is the ability of a good or service to satisfy the want of a consumer. The customers of Bata has the want of comfort and affordability which gets satisfied after the purchase.

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