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Effect of Gasohol Production on the Sugarcane Industry in Thailand
capabilities, knowledge, skills, and judgment of all the firm's
employees), organizational resources (the firm's systems and
processes, including its strategies, structure, culture,
purchasing/materials management, production/operations,
financial base, research and development, marketing,
information systems, and control systems), and physical
resources (plant and equipment, geographic locations,
access to raw materials, distribution network, and
technology). Sustained competitive advantage refers to
valuable strategies that cannot be fully duplicated by the
firm's competitors and that result in high financial returns
over a lengthy period of time.
5.2 Determination of Price and Quantity
The demand curve shows what consumers wish to
purchase at various prices, and the supply curve shows
what producers wish to sell. When the two are put together,
we see that there is only one price at which the quantity
consumers wish to purchase exactly equals the quantity
firms wish to sell. In Figure 1, that price is 20 baht/kg,
where consumers wish to purchase sugar 62,500 tons and
firms wish to sell the same quantity. It is identified by the
point of intersection between the supply and demand curves.
The intersection identifies the equilibrium price and
quantity in the market. The concept of equilibrium means
there is no tendency for the price or quantity to change as
long as the supply or the demand curve does not shift.
The point of intersection of the supply and the demand
curves identifies the equilibrium price and quantity. Here, at
the price of 20 baht/kg, the quantity demand by consumers
exactly equals the quantity supplied by firms. Market forces
tend to produce this conclusion of microeconomic theory is
that the independent actions of buyers and sellers will tend
to establish the equilibrium price and quantity.
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