c

1) What are the opportunity costs that producers face in the industry?

ac ostly non productive industry

ac Mpportunity cost among the different variety of products(problem of choice)
ac Mpportunity cost with respect to space in store (eg apparels and food items)
ac ×onsumer Behaviour effects opportunity cost

2)What are the choices (trade-offs) that firms make while producing output?

ac om-and-pop stores: they are family owned business catering to small sections; they are
individually handled retail outlets and have a personal touch.(Depends upon consumer
behavior)

ac Which type of goods to trade with(

garments(men,women,kids),food,jewellery,hosiery,crockery,household,footwear, Consumer
Electronics, Home Improvement, Home Products, Sporting Goods

3) How have prices moved over the last 10 years? Any difference in real price and nominal
price?
ac ×ompetition increased
ac ore Discounts

ac ºhe urban consumer

mc ^etting exposed to international lifestyles
mc nclined to acquiring asset
mc ore discerning and demanding than ever
ac o longer need-based shopping
mc Ghopping is a family experience
ac ×hanging indset
mc ncreasing tendency to spend
 ac ndia ranked 1st in the ^lobal A.º Kearney Retail Development ndex

4) s the production process more labor-intensive or capital-intensive? Why?

ac
ac

5) What are the inputs? Which are fixed and which are variable?

ac ëmployment as well as capital

ac Retail Gpace

6) Does the industry experience ͚diminishing returns͛ in the short run? Why and how?