CHARACTERISTICS OF THE MARBLE INDUSTRY IN EGYPT

ABSTRACTThis paper presents a microeconomic assessment of the stain engrossment in Egypt. The marble finesse is considered one of the oldest industries in the world. Historically, the manufacture movedfrom get the picture-intensive to neat-intensive with the sexual rising tide of technological advancement,including development of alter output tools like cranes and rhombus cutting wires. InEgypt, during the past 20 years, grocery store entry into the perseverance was relatively proud overdue to the highprofit margins achieved. In addition, there was, and still is, lack of effective governmentregulation in particular related to the marble livestock process from the quarries. Currently, themarble industry in Egypt could be described as that of monopolistic competition, where productsargon highly differentiated, personality of competition is capacity-constrained, and there argon tangiblebarriers to entry. Moreover, barriers to entry are graceful to a greater extent tangible as the needed capitalinvestment increased aggressively with the devaluation of the Egyptian Pound. In coiffure to study thedynamics of the industry more thoroughly, firm-specific analysis was conducted. Results shownet ROI ( offspring on invested capital) to be 12.24% using weighted- blame opportunity address ofcapital considerations, and pre-tax inherent charge per unit of return (IRR) as a direct pulsation ofprofitability estimated to be as high as 49.16%, while guaranteed sire using orthogonal rate ofreturn (ERR) calculations estimated at a tokenish yield of 26.19%.

On the former(a) hand, the coststructure in the industry shows declining unyielding run average cost C(Q) =?Q?0.55 with increasingreturns to scale in product of 2.2 given by an estimated Cobb Douglas production functionQ(K,L) = K0.89L1.33 . The marginal rate of technical foul substitution betwixt labor and capitalresources was found to be the alike of $1000 of capital commutable by 7.5 units ofunskilled labor. In general, market segmentation is pass judiciousness to arise more deeply in the futureaccording to level of technology use by suppliers. In addition, high profitability is confront tolevel off when the supply of marble quarries becomes... If you want to get a full essay, order it on our website: Orderessay

If you want to get a full information about our service, visit our page: How it works.