CHARACTERISTICS OF THE MARBLE INDUSTRY IN EGYPT

ABSTRACTThis paper presents a microeconomic assessment of the marble patience in Egypt. The marble craft is considered one of the oldest industries in the world. Historically, the constancy movedfrom drudge-intensive to neat-intensive with the sexual windup of technological advancement,including development of alter toil tools like cranes and adamant cutting wires. InEgypt, during the past 20 years, foodstuff entry into the industry was relatively higher(prenominal) out-of-pocket to the highprofit margins achieved. In addition, there was, and liquid is, lack of effective governmentregulation peculiarly related to the marble logical argument 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 meet much tangible as the needed capitalinvestment increased aggressively with the devaluation of the Egyptian Pound. In adjust 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- straight opportunity personify ofcapital considerations, and pre-tax inside arrange of return (IRR) as a direct whole step ofprofitability estimated to be as high as 49.16%, while guaranteed chip in using orthogonal rate ofreturn (ERR) calculations estimated at a borderline yield of 26.19%.

On the opposite hand, the coststructure in the industry shows declining large run average cost C(Q) =?Q?0.55 with increasingreturns to scale in proceeds 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 uniform of $1000 of capital substitutable by 7.5 units ofunskilled labor. In general, market segmentation is pass intellect to arise more deeply in the futureaccording to level of engineering use by suppliers. In addition, high profitability is rest tolevel off when the supply of marble quarries becomes... If you want to get a full essay, order it on our website: Ordercustompaper.com

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