Saturday, March 31, 2012

Exit in Boat Manufacturer Market

The Wall Street Journal has a good piece on the impact in the boating industry due to the decrease in demand during the last recession. Notice that as demand decreased that prices and output (along with the number of firms) decreased as shown in the long-run competitive market model. While the boat industry is not perfectly competitive (as represented by the model from Prin. of Micro), the model gives a good feel for the industry.

2 comments:

jhone keat said...

joy to read, I came across this site ages ago but I’ve only just decided to stop back and have a read of your articles.

James Moore said...

Pontoon Boats are so much of fun.