A review of the circumstances leading up to the collapse of a local contractor.
Written in 2006; 675 words; 0 sources; $ 26.95
Paper Summary:
The following paper is a expose of a small business which collapsed because of the micro-economic maladies commonly known as market failure (in this case, a lack of competition and/or oligopoly) and asymmetric information flow. The paper explores the sad history of the company's decline and also pores over the decisions the owner made which most likely contributed to his plight.
From the Paper:
"The slow death of a small business first unfolded last year when the business owner attempted to expand his business despite intense local competition from a larger organization which also was receiving subsidies from the local county because of a long-running contract it had with the aforementioned body. At the same time, the contractor was also attempting to produce plastic products for a number of local companies. Unfortunately, the contractor knew very little about the highly complex plastics sector and he knew nothing about the expensive machinery he would have to introduce to his facilities in order to produce the goods in question. "
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