\"The supply of FedEx seems to be elastic. DHL, Amazon, UPS and the USPS are all
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"The supply of FedEx seems to be elastic. DHL, Amazon, UPS and the USPS are all competitors and keep the price down for shipping. Some articles state that they are bigger competitors than they are, but once researching the numbers, they are more compliments to one another than competition. Every aspect of shipping and companies use different weights and measurements to determine what ships and how it ships. It is just common sense to use a company that is already shipping large quantities of items than it is for Amazon to ship its own and cost them more in the long run. This is where the variable costs come into play. The company would have to weigh its options and figure out if it was worth it to use their own resources to ship it or more cost effective to use someone else."
B. what is the current supply situation-is the curve changing (use graphs)? Graph #2:-Supply Curve and any Changes (CHOOSE ONE): 1. Curve shift and underlying causes 2. Movement along the curve and causesExplanation / Answer
All These Courier Companies work under the scenario of Perfect Competition selling the similar services to the customers Under Perfect Competition the firm supply curve is horizontal But according to passage essay As the supply curve of Fed is quite elastic wrt price in comparison to DHL,Amazon,UPS and USPS which are competitive and lowers their prices This will be the case of monopolistic Competition where the
Talking about Amazon who is a big retailer giant relies on Prime shipping packages via UPS. In case of destinations not served by UPS, alternate carries like FedEx/DHL are used. If the estimated delivery date falls on a Saturday, then it is very likely that the package will be shipped via FedEx as UPS doesn't deliver it on Saturdays. Amazon uses USPS for US shipping goods under four pounds and while there are plenty of customer complaints about failure to properly deliver,
The Move by Amazon to deliver the Prime goods comes no surprise by itself due to the popularity of shopping Amazon's ambition has been in plain sight for years. The company has built its own network of merchandise warehouses and package sorting centers. It enlisted its own airplanes and truck trailers to transport cargo. It registered to move freight across oceans, and in dozens of cities it tapped couriers to deliver packages directly to shoppers' doors.
So Initially the shape of supply curve will be increasing with price and quite elastic. With the increase in competition the supply curve turns horizontal. Initially there will be a movement along the supply curve But later there will be a shift in supply curve from increasing competition. In the long run the supply curve will coincide with the demand curve due to decline in demand for these company shares and increase in the amazon supply curve.
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