Posted: September 13th, 2017

Manufacturing Industry Evaluation

Manufacturing Industry Evaluation

In order to make it in the big scheme of things companies need to compare their products and prices to that of their competitors in order to make necessary adjustments or arrangements that will help to create equilibrium with companies operating at their pace. Equilibrium happens when the supply and the demand levels are at the same. If equilibrium is there, prices do not usually change. Adjustments are only needed when in the long-run economic profits are eliminated. In this case, the company needs to find ways to efficiently utilize their resources in order to decrease production costs, so they can remain profitable.
A perfect competitive company is associated with efficiency for both the consumers and the business itself because they are able to offer their products at reasonable price or prices while still making a profit for themselves. This type of company (perfectly competitive) would be considered operating at maximum efficiency, since they are likely maximizing the uses of their resources they have in order to maximize profits. Also, this means that company is producing the products that people want at the least possible cost they can.