Question

Tina owns a workshop that specializes in making intricate wooden decorative items. She makes scale models of most of the existing objects around the world. She faces virtually no competition in her business and thus enjoys a stable growth. The opportunity of _____ is highlighted in the given scenario.

Answer 1

Having increased profit

Step-by-step explanation:

When there exists competition in a market, owners and companies are forced to lower their prices to make their product or service competitive. The opportunity that Tina has now, enables her to sell the wooden decorative items at a prize that not only cover her costs of production, but also with higher profit. However, Tina must be very wise as to how to use that profit. She may not have competitors now, but in the future she might have. Granted, she can look at ways in which she can use that profit to invest in technology or computer systems that could make the production costs lower, which in turn enable her to reduce the prize of her products in the future.