People might not be able to notice it, but it cannot be denied that today’s society has instilled a high value of consumerism. Everything in society has become increasingly commercial that it has influenced the way people think, act, and make decisions for themselves on a daily basis. This is why it is very important for people to know and understand the basics of economics and management, for these has become a natural part of their lives.
One of the most basic concepts in economics that people inevitably encounter every day, is the concept of supply and demand. In the case of the scenario from Katrina’s Candies, the possible market structure that is most appropriate for the case, is the Monopolistic Competition type of market structure. This is because in this set up, first, firms or businesses have more freedom in entering and exiting the market scene, and second, it promotes a variety of products, which helps in providing consumers more options of goods. Moreover, the case of Katrina’s Candies entails the impact of government interventions in the constant change in the supply and demand curves in the scenario.
In the scenario provided about the chemical leak, as the manager of the company, I would be more than willing to take corrective action and confess immediately after the incident has happened. Though this will surely have a huge impact in the profitability of the company for quite some time, addressing the issue immediately will create a sense that the company is being responsible for its deeds. Apart from this, taking the appropriate measure immediately will help avoid further harm, that may have an added impact to the company (Hofstrand, 2009).
References
Hofstrand, D. (2009, December). Understanding Profitability. Retrieved January 28, 2017, from https://www.extension.iastate.edu/AGDM/wholefarm/html/c3-24.html
