Traditional Culture Encyclopedia - Hotel franchise - Try to use the short-term equilibrium knowledge of the factory in a completely competitive market to explain how the hotel is in the off-season.
Try to use the short-term equilibrium knowledge of the factory in a completely competitive market to explain how the hotel is in the off-season.
When the perfectly competitive market is in a short-term equilibrium, the manufacturer can make a profit, get the minimum loss, or make a profit of zero. Because in a perfectly competitive market, there are countless manufacturers who produce undifferentiated products, so each manufacturer can't influence the price of goods, and the manufacturer is only the price receiver. Therefore, in the short term, a perfectly competitive manufacturer can only achieve a short-term equilibrium condition in which the marginal cost is equal to the price by adjusting the input of production factors under a given production scale. The specific measures are that hotels should reduce the input of production factors in the off-season. The production factors of the hotel should be meals and rooms, so the hotel needs to reduce the supply of redundant rooms according to the actual supply and demand situation, and adjust the supply of meals at the same time, for example, adjust the types and quantities of meals according to the market demand situation. And reduce hotel investment in management and sales.
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