The stock market is a leading indicator, so yeah, it often rises before a recession ends, and falls before a recession starts.
- Supermarkets and shops selling inferior goods.As the recession leads to fall in demand of consumers,so people likely to go to the supermarkets,buy cheaper food and do it themselves than hanging out to eat in the restaurants.So as inferior goods shops,their interest to expensive and famous branded products has been falling.So the demand for inferior goods increased.
Diseconomies of scale
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Diseconomies of scale occur when a business grows so large that the costs
per unit increase. As output rises, it is not inevitable that unit costs
will fa...
7 years ago
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