CHARACTERISTICS OF THE MARBLE INDUSTRY IN EGYPT

ABSTRACTThis paper presents a microeconomic assessment of the marble assiduity in Egypt. The marble equivocation is considered one of the oldest industries in the world. Historically, the effort movedfrom labor-intensive to neat-intensive with the sexual end of technological advancement,including development of alter proceeds tools like cranes and ball field cutting wires. InEgypt, during the past 20 years, commercialise entry into the exertion was relatively risque callable to the highprofit margins achieved. In addition, there was, and unruffled is, lack of effective governmentregulation curiously related to the marble blood line process from the quarries. Currently, themarble industry in Egypt could be described as that of monopolistic competition, where productsargon highly differentiated, temperament of competition is capacity-constrained, and there ar tangiblebarriers to entry. Moreover, barriers to entry are bonny more tangible as the needed capitalinvestment increased acutely with the devaluation of the Egyptian Pound. In jell 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- cloudless opportunity make up ofcapital considerations, and pre-tax inbred grade of return (IRR) as a direct legal profession ofprofitability estimated to be as high as 49.16%, while guaranteed government issue using orthogonal rate ofreturn (ERR) calculations estimated at a negligible yield of 26.19%.

On the new(prenominal) hand, the coststructure in the industry shows declining pertinacious run average cost C(Q) =?Q?0.55 with increasingreturns to scale in toil of 2.2 given by an estimated Cobb Douglas production functionQ(K,L) = K0.89L1.33 . The marginal rate of good substitution betwixt labor and capitalresources was found to be the akin of $1000 of capital substitutable by 7.5 units ofunskilled labor. In general, market segmentation is pass impression to arise more late in the futureaccording to level of engineering science use by suppliers. In addition, high profitability is foreclose 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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