5 concept of economics used in Britannia

1)  Law of supply
When the supply of biscuits increases the price of biscuits also increases , and profit also increases because the law supply says that when there will be a increase in supply the price of goods also increases .Here  this concept is applied

Opportunity cost

This concept is applied in this industry Britannia company uses the raw materials from the best company and sacrifices to take raw materials from other. Here opportunity lost  is sacrificing the raw materials of othere company is   the opportunity cost

Economics of scale
Britannia focuses on bulk production because to reduce the cost and to increase profit. company focus on the bulk production to make the profit

Oligopoly Market : Britannia is a oligopoly market because there are few number of firms are there. The entries and exit on this market is restricted. The product of Britannia is differentiated or undifferentiated . The graph of oligopoly market is inelastic and slope is always downward

Producer surplus : this concept is applied in brittania because the company has ability to produce more product then the market demand. For example suppose market demand is 4000 and the company is having ability to produce 6000 then there will be a surplus of 2000.