Finance consultancy firms
1. Monopolistic competition- there are many several seller in the market, there is no such restriction on entry of new firm/company, selling differentiated services. If a customer wants an financial solution he'll getting variety of options to choose because there are many sellers selling differentiated services suiting the customer requirements and there is no restriction on entry of a new firm in the market.
2. Price discrimination- when a firm charges two different prices to two different customer for the same product or services, sometimes the consultancy firms charges two different prices to two different customers for the same services depending upon customer relation or any other reasons.
3. Economies of agglomeration- the term agglomeration means cluster, when all the related fields of business cluster together, their costs of production may decrease. Even when competing firms in the same sector cluster there may be advantages because the cluster attracts more suppliers and customers than a single firm could achieve alone.
4.Customers can be indifferent- when there will a cluster of related businesses the customer can be indifferent because there will we be many sellers that would be providing some similar services to the customer that can give equivalent result to customers problem.
5. Mobility of inputs- sometimes the consultancy firms send there experts to clients place to do the job,even if the client is there in different city, so there is mobility of input happening.
1. Monopolistic competition- there are many several seller in the market, there is no such restriction on entry of new firm/company, selling differentiated services. If a customer wants an financial solution he'll getting variety of options to choose because there are many sellers selling differentiated services suiting the customer requirements and there is no restriction on entry of a new firm in the market.
2. Price discrimination- when a firm charges two different prices to two different customer for the same product or services, sometimes the consultancy firms charges two different prices to two different customers for the same services depending upon customer relation or any other reasons.
3. Economies of agglomeration- the term agglomeration means cluster, when all the related fields of business cluster together, their costs of production may decrease. Even when competing firms in the same sector cluster there may be advantages because the cluster attracts more suppliers and customers than a single firm could achieve alone.
4.Customers can be indifferent- when there will a cluster of related businesses the customer can be indifferent because there will we be many sellers that would be providing some similar services to the customer that can give equivalent result to customers problem.
5. Mobility of inputs- sometimes the consultancy firms send there experts to clients place to do the job,even if the client is there in different city, so there is mobility of input happening.
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