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Equilibrium and Barriers to Entry and Long-Term
Words: 1607 Length: 6 Pages Document Type: Essay Paper #: 63560532
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Equilibrium and Barriers

Barriers to Entry and Long-Term Equilibrium in Monopolistic Markets: Strategy and Market Forces

Introduction Marginal Equilibrium

Barriers to entry can arise out of natural market forces as well as through careful strategic creation or enhancement by incumbent organizations that have a great deal of control over a given market and/or industry. When a specific organization has established a monopolistic or near-monopolistic control over its market and enjoys a great deal of stability and equilibrium with some price flexibility as well, it can be very much in its interest to erect or encourage barriers to entry that thwart the possibility of other entrants into the market, disrupting this equilibrium. As mentioned, many of these barriers to entry arise on their own out of market forces, but they can also be encouraged by strategic decisions within incumbent organizations that influence the market generally and at times explicitly.

Before examining…


Arping, S. & Dlaw, K. (2007). Sunk costs, entry deterrence, and financial constraints. International Journal of Industrial Organizations 26(2), pp. 490-501.

Baumol, W. & Blinder, A. (2008). Microeconomics: Principles and policy. Mason, OH: Cengage.

Bernanke, B. (2003). Principles of microeconomics. New York: McGraw Hill.

McNutt, P. (2008). Signaling, strategy, and management type. Donegal & Dublin.

Market Equilibration the Process of Achieving a
Words: 601 Length: 2 Pages Document Type: Essay Paper #: 2695321
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Market Equilibration

The process of achieving a market equilibrium relies on some basic principles. The principle of demand holds that, all other things being equal, the higher the price of a good the less people will demand of that good (Investopedia, 2012). There are exceptions to this law, for example goods with inverse price elasticity of demand, but in general the law of demand holds for all goods, even those with very low price elasticity of demand.

The law of supply is the inverse. It holds that all other things being equal the higher the price of a good, the more suppliers will want to provide. Thus, as prices rise, the supply of a good will rise because the profit associated with the production of that good will increase, but the lower the demand will be, because the buyers' marginal utility will decrease.

Those other things that must be equal,…

Works Cited:

Investopedia. (2012). Economics basics. Investopedia. Retrieved April 11, 2012 from 

Riley, G. (2006). AS markets and market systems. Retrieved April 11, 2012 from

Market for Milk if More
Words: 1263 Length: 4 Pages Document Type: Essay Paper #: 53892796
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The total supply of milk might remain the same, because the remaining high-efficiency producers are likely to be able to earn profits at this level of output. In the long-run, however, lower prices are going to sustain the quantity of milk demanded at higher than equilibrium levels, and the profits available to producers at lower than equilibrium levels. Producers, in their efforts to control costs, are going to reach a point of diminishing returns on those efforts. The result of this is that the market for milk will eventually become so distorted by the price ceiling that the government is forced to raise the price ceiling in order to ensure that there are producers remaining in the market. The government will have created a situation where to simply maintain the milk market requires active management.

2. There are several factors that contribute to the price elasticity of demand. One factor…

Works Cited:

Rittenberg, L. And Tregarthen, T. (2009). Chapter 3: Demand and Supply. Section 1 and 3. Principles of Microeconomics. Retrieved December 2, 2011 from: click here

Rittenberg, L. And Tregarthen, T. (2009). Chapter 4: Applications of Demand and Supply. Section 1 and 3. Principles of Microeconomics. Retrieved December 2, 2011 from: click here

Rittenberg, L. And Tregarthen, T. (2009). Chapter 5: Elasticity and a Measure of Response. Section 1 and 2. Principles of Microeconomics. Retrieved December 2, 2011 from: click here

Market Equilibration Process for Computer Peripherals That
Words: 639 Length: 2 Pages Document Type: Essay Paper #: 70813341
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Market Equilibration Process for Computer Peripherals

That Experience High Level of Cyclicality

The demand for computer peripherals in general for the inkjet and low-end nonimpact printers specifically has continually proven to be highly inelastic, where price reductions are not as effective as a continual stream of new product innovations. Having completed internships with peripherals manufacturers, this observation became very clear as product management and marketing teams continually tested the market equilibration process with price reductions, bundling suppliers and extending the overall warranty period as well. When the law of demand is applied to computer peripherals in general and inkjet printers specifically, the inelasticity of these markets becomes more pronounced and the ancillary process workflows emerge as the primary differentiators.

Analysis of Market Equilibration Process for Computer Peripherals

In the absence of highly elastic product demand and exceptional product differentiation that leads to unitary or highly elastic demand curves for products,…


Leijonhufvud, A. (2009). Limits to the equilibrating capabilities of market systems. Journal of Economic Interaction and Coordination, 4(2), 173-182.

Matsushima, N. (2004). Technology of upstream firms and equilibrium product differentiation. International Journal of Industrial Organization, 22(8), 1091-1114.

Market Model Patterns of Change
Words: 1403 Length: 4 Pages Document Type: Research Paper Paper #: 25248307
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Over the last few years, the government has exerted more control on the insurance industry by controlling premium rates meaning the industry has become less competitive on pricing. In addition to this, through Obamacare, the government has set requirements for healthcare insurers which have significantly reduced their medical loss ratio Dinan 396.

The second factor that affects the degree of competitiveness of the industry is the number of companies operating in the industry. This has been the major reason for the hundreds of mergers in the industry since this is the major driving factor for changes in market share. The last factor is government-provided health insurance. The government provides insurance plans which create significant competition for the private companies Vanness and olfe 101()

The productivity measures that can be developed are the number of health insurance consumers, average cost of providing medical cover and price of health insurance premiums. The…

Works cited

Austin, D. Andrew, and Thomas L. Hungerford. The Market Structure of the Health Insurance Industry. Washington, DC: Congressional Research Service, 2009. Print.

Baughman, Reagan. "Differential Impacts of Public Health Insurance Expansions at the Local Level." International Journal of Health Care Finance and Economics 7.1 (2007): 1-22. Print.

Dinan, John. "Shaping Health Reform: State Government Influence in the Patient Protection and Affordable Care Act." Publius 41.3 (2011): 395-420. Print.

Dossche, Maarten, Freddy Heylen, and Dirk Van den Poel. "The Kinked Demand Curve and Price Rigidity: Evidence from Scanner Data." The Scandinavian Journal of Economics 112.4 (2010): 723-52. Print.

Market Patterns One Industry That Has Shifted
Words: 1231 Length: 4 Pages Document Type: Essay Paper #: 70338621
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Market Patterns

One industry that has shifted in the past few years in terms of its structure is the smartphone operating system market. A few years ago, most of the early smartphones were based around proprietary operating systems. Palm and Blackberry dominated the market. Apple joined the industry with the introduction of the iPhone, but more recently other firms have entered the market as well, including Google (Android), indows, Symbian and other systems. The market has moved from a stable oligopoly of four firms basically between two firms into a market that is much closer to monopolistic competition. However, there is the risk that as operating systems shake out, the market could return to an oligopoly of just three operating systems (est & Mace, 2007).

In the short-run, firms in this industry will seek to gain market share through differentiation. The products are slightly differentiated from each other -- they…

Works Cited:

West, J. & Mace, M. (2007). Appropriability, proximity, routines and innovation. Druid Summer Conference 2007. Retrieved February 4, 2012 from{^

Seppala, (no date). Monopolistic competition. University of Illinois. Retrieved February 4, 2012 from

Watkins, T. (no date). The transaction cost approach to the theory of the firm. San Jose University. Retrieved February 4, 2012 

Blodget, H. (2011). Android is destroying everyone, especially RIM -- iPhone dead in water. Business Insider. Retrieved February 4, 2012 from

Markets & Economy a Budget
Words: 1172 Length: 4 Pages Document Type: Essay Paper #: 19369386
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Rational firms will choose the lowest-cost option between the two. The market is expected to be efficient, so that while some firms will find it cheaper to pollute, other firms will find it cheaper to install pollution abatement mechanisms.

Ultimately, the system will seek to deliver the lowest per-unit cost of abatement. This will be achieved because the firms that are going to abate their pollution are the ones for whom the cost of abatement is lower than the cost of polluting. With these firms focused on their abatement efforts, they will deliver a greater degree of pollution abatement at a lower per-unit cost with the marketable permits than any other system.

To see the value in this system, the alternative must be considered. If firms are mandated to reduce pollution, they will do so to bring themselves under the maximum allowable pollution levels. However, firms will have no economic…

Market Efficient Respect Set Information Impossible Makes Abnormal Profits
Words: 2918 Length: 8 Pages Document Type: Essay Paper #: 63233798
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Market Efficient espect Set Information Impossible Makes Abnormal Profits

Market Efficient

In his work, Fama argued that given the massive use of resources by the brokerage firm to conduct studies on trends in the industry, the effects of changes in interest rates on corporate balance sheets and expectations of managers and/or political analysts of the companies should be able to systematically beat a generic portfolio with the same risk characteristics.

Since, according to Fama, professional in every situation, the analyst has a fifty percent chance of beating the market; although its specific capabilities did not exist he would beat a lot of the market. The analyst did "help" the market to be efficient if all the investors, in fact, would hold portfolios composed of stock indices, would open up significant opportunities for professional traders to take advantage of the situation. But the movement of traders to that "new market" would…


Arrow, K.J., 1959. 'Toward a theory of price adjustment', in M. Abramovitz (ed.), The Allocation of Economic Resources, and Stanford: Stanford University Press, pp. 41 -- 51.

Aumann, R.J., 1964. "Markets with a Continuum of Traders," Econometrica, Vol. 32, No. 1/2, Jan. - Apr., pp. 39 -- 50.

Clifton, J.A., 1977. "Competition and the evolution of the capitalist mode of production," Cambridge Journal of Economics, vol. 1, no. 2, pp. 137 -- 151.

Frank, R., 2008. Microeconomics and Behavior 7th ed. (McGraw-Hill) ISBN 978-007-126349-8.

Equilibrium Elasticity Is One of
Words: 651 Length: 2 Pages Document Type: Essay Paper #: 79678328
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Movie theaters should solve their problem by allowing for market pricing on seats at different showings. I would borrow a system that is in place at some discount airlines. This is a good business to take cues from because, like the movie theater business, they have regularly scheduled but perishable supply. The prices for each seat would depend on how many seats for the showing remained. The first, say, ten seats in the theater would be the lowest-priced, and then the prices can increase as the number of remaining seats decreased. The theater would therefore encourage people to forgo a popular showing for a less-popular one because of the money saved

The downside to this approach is that it does not explicitly solve the problem of having capacity overages. If there is excess supply, then the theater is simply shuffling the same number of customers around between different…

Works Cited:

McConnell, C., Brue, S. & Flynn, S. (2009) Economics: Principles, problems and policies, eighteenth edition. McGraw-Hill. Chapter 3.

McConnell, C., Brue, S. & Flynn, S. (2009) Economics: Principles, problems and policies, eighteenth edition. McGraw-Hill. Chapter 6.

Market Effects of Immigrant Labor
Words: 1237 Length: 4 Pages Document Type: Case Study Paper #: 39534098
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emaining workers will get jobs at higher than equilibrium wage, the Supply curve shifts to the left, and wage and output stabilize until something else changes like input cost or legislation.

Were firms able to hire workers at less than minimum wage, say like in Figure 4, where the cost of paying illegals including the enforcement cost results in lower demand for legal minimum wage workers, the result would be a total average cost between the two supply lines, increased outcome for the firm, at less than average minimum wage cost. The new Alabama law seems to attempt to drive off the black line "illegals" by mandating stiffer enforcement for services and privileges like business or auto licenses, awls (2011) explains. This creates an interesting distribution of costs if firms derive profit, but the cost of enforcement is being pushed onto others not employing illegals. If the black line in…


Rawls, P. (2011). Ala. GOP leaders have 2nd thoughts on immigration. The Associated Press, 8

Dec. 2011. Financial News, Bloomberg Businessweek Retrieved from

Competitive Market Environment That Victorian Diary Giant
Words: 1640 Length: 5 Pages Document Type: Essay Paper #: 62448937
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competitive market environment that Victorian Diary Giant operates by answering four questions in the case. Victorian Diary operates under the perfect competitive market. In the last few years, the firm has cut the milk prices by 8.5% making the new price to move to $4.50 per kilogram leaving farmers at break-even level because of the glut of the milk in the world markets. While 8.5% cut of price is relatively good, however, the struggling famers does not achieve much comfort from the new price.

Competition occurs when there is a rivalry among firms producing similar products. In the competitive environment, firms always try to take away the market shares of other firms. However, a perfect competitive market is the kind of market where firms are price taker. The following requirements operate in a perfect competitive market:

Firms operating in the market produce identical products,

There are no barrier to enter…


Andreu, M, Michael, W.D. & Jerry, G.R. (1995). Microeconomic Theory. Oxford University Press, New York and Oxford.

Edwards, C. (2007). Milk Madness. Tax & Budget Bulleting . No 4.

Hugh, R. (2008). Price Controls. Concise Encyclopedia of Economics. Library Economic and Liberty.

Real World Market
Words: 3137 Length: 10 Pages Document Type: Term Paper Paper #: 27297130
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Amazon, eBay, and Craigslist

A Real orld Market

E-commerce companies promote and sell their products at the online platform. They use the most advanced systems, techniques, and strategies for doing advertisements for their products, making and receiving payments, and managing customer and stakeholder relationships. This paper presents an analysis of the strategies and policies of three top companies from e-commerce industry, eBay, Amazon, and Craigslist.

The paper starts with a brief introduction to these companies by discussing their origin, scale of operations, location, product and service portfolio, and core operational strategies. is an American multinational e-commerce corporation that mainly deals in new and branded products. eBay is an auction website that provides a platform to the buyers and sellers to interact and do transaction in a safe and convenient way. Craigslist is also an e-commerce website where buyers and sellers negotiate for their transactions. If a buyer has to…

Works Cited

Amazon. About Amazon, 2013. Web. June, 1st, 2013.

Baye, Michael. The economics of the Internet and e-commerce, 1st Edition. Amsterdam: JAI Press, 2005. Print.

Collier, Marsha. EBay for dummies, 7th Edition. Hoboken, N.J: John Wiley, 2012. Print.

Craigslist. About Craigslist, 2013. Web. June 1st, 2013.

Health Care Market in Discussing the Market
Words: 818 Length: 3 Pages Document Type: Essay Paper #: 14654930
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Health Care Market

In discussing the market for a health care good or service, one must first understand that in speaking of "health care," one is actually speaking of the entire health care industry, along with each of the goods and services that are produced and exchanged within this market. From organ transplant operations and blood donation to therapeutic massages and nursing home activity programs, the span of health care goods and services is both vast and varied. Further, in viewing today's uncertain economy, the market for health care goods and services is one that brings with it many different questions that must be addressed in order for a stakeholder to fully comprehend what decisions need to made in order to turn a profit.

Scarcity of esources

Scarcity of resources within this market significantly influences the decisions that stakeholders are forced to make. With scarcity of resources comes limited action…


Case, K. And Fair, R. (2007). Principles of economics. Upper Saddle River, NJ: Pearson

Education, Inc.

Fullerton, D. (2008). How economists see the environment. Nature, 385(6701), p. 433.

Retrieved from: LexisNexis Database.

Economics Observing the Influences That Impact Market
Words: 829 Length: 2 Pages Document Type: Essay Paper #: 35423045
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Observing the Influences that Impact Market Equilibrium

Purchasing fresh produce in a farmers market offers an opportunity to buy direct from a supplier. The process of buying fruit and salad items direct from the suppliers, rather than though an intermediary such as a supermarket, increases the exposure of the purchaser to price fluctuations. Visiting the market, which is held every weekend, over a number of weeks it was possible to see how different influences would impact on the supply and demand for the products, and how this impacted on the prices. The prices of the little gem lettuces appears to be one of the more sensitive products; this may have been due to their short shelf life. These lettuces, unlike other produce, are not suitable to be held for any period in cold storage, so there is not the ability to hold a supply ready for the peak demand.…


Baye Michael, (2007), Managerial Economics and Business Strategy, McGraw-Hill/Irwin

Nellis JG, Parker D, (2006), Principles of the Business Economics, London, Prentice Hall

The paper is written generically, so this may be changed for other produce items with a short shelf life.

The price may be changed as needed

International Financial Markets and Institutions
Words: 3339 Length: 10 Pages Document Type: Essay Paper #: 65472909
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27-29) This provoked financial demands and awareness of the people in different parts of the world. People and businesses are dissatisfied with the traditional financial systems due to lack of opportunities for investors. Businesses today require more diversified portfolios for investments because this will reduce their investment risks and increase the probability of future capital flows.

Increased capital mobility has increased the importance of exchange rates which is serving as a monetary policy channel in some industrialized economies. In mid 2000s, there was a sharp shift in the flow of international investments and savings (geographic pattern) resulting in the segmentation of current account imbalances. This was also a major contributing factor. Additionally, the domestic financial markets were also affected by the change in regulatory environment. The two important factors for this are as follows:

1. apid growth of OTC (over-the-counter) markets of derivatives in terms of complexity as well as…


Bekaert, G., Harvey, C. And Lundblad, C. 2005. Does financial liberalization spur growth? Journal of Financial Economics 77, 3 -- 55.

Edison, H., Klein, M., Ricci, L. And Slok, T. 2004. Capital account liberalization and economic performance: survey and synthesis. IMF Staff Papers 51, 111 -- 115.

Kaminsky, G. And Reinhart, C. 1999. The twin crises: the causes of banking and balance-of payments problems. American Economic Review 89, 473 -- 500.

Klein, M. 2005. Capital account liberalization, institutional quality and economic growth: theory and evidence. Working Paper No. 11112. Cambridge, MA: NBER, pp.19-21.

Influence of 2007 Economic Crisis on American Car Market
Words: 24230 Length: 88 Pages Document Type: Thesis Paper #: 81822842
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2007 Economic Crisis on American Car market

Effect of the 2008 global economic crisis on automotive industries

Crisis in the United States

Crisis in Canada

Crisis in ussia

Crisis in European markets

Crisis in Asian markets

Effects by other related crisis events

In this paper, we will review the effects of 2008 global automotive crisis. Our main focus will be on the American car manufacturers and the negative impact they suffered due to the crisis. We will also have a look at how this crisis had affected car manufacturers in other major markets around the world notably Europe, Canada and the prominent Asian markets such as China and India. Finally, we will look at some of the other factors which were important to this event namely the energy crisis since the cost of fuel is directly related to the car industry.


The automobile industry is a very important part…


Lee, C. (2003). Financial Liberalization and Economic Crisis in Asia. New York: Routledge.

Pempel, T.J. (1999). The Politics of Asian Economic Crisis. New York: Cornell University Press.

Arestis, P. (2001). What Global Economic Crisis? New York: Palgrave.

Liou, K.T. (2002). Managing Economic Development in Asia. Westport, CT: Praeger.

Portfolios EMH Finance and Markets
Words: 1366 Length: 4 Pages Document Type: Case Study Paper #: 86672973
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Investment returns are the amount that the investment is worth (upon sale), net of taxes, over and above the price paid for the investment. The returns can be expressed either in absolute terms, or in annualized terms. The return on an investment that cost $1,000 and is sold for $1,060 a year later is as follows:




% eturn

This graph shows that the odds of an outcome increase as the expected return approaches 6%. If there were an infinite number of scenarios, the graph would look like this, but the tails on the y axis would by fully extended infinitely as the probability of an outcome approaches zero.

The expected rate of return on the Treasury bonds is the weighted average of the probabilities and returns listed in the table. Thus:








Expected eturn

The expected return therefore is 6%…


Investopedia (2015). CFA level 1. Investopedia. Retrieved August 5, 2015 from 

Investopedia (2015). Standalone risk. Investopedia Retrieved August 5, 2015 from

Market Structure and Pricing Strategies
Words: 3091 Length: 9 Pages Document Type: Research Paper Paper #: 49191873
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market structures in detail and analyses the pricing strategies that the firms have to undertake when they operate in different regimes. The case study on Toyota is considered next, which indicates that firms competing in various structures does not only have to focus on price and quantity ceteris paribus, they also have to consider external and internal variables that have a bearing on these decisions.

Introduction to Market Structures

Market structures are important parts of economic theory as they model market behavior that can help economists explain activities in industry with ease. Market structures, hence are basically models that define market behavior with respect to certain criteria so that it becomes simpler to compare events in real life to the postulated scenario as described in theory in order to be able to determine casualties and to define optimal strategies that firms operating in different market structures can use.

There are…


Bennett, D., Hagiwara, Y., & Kitamura, M. (2011, September 5). Toyota Bets on Japan. Bloomberg Businessweek, pp. 70-73,. Retrieved from

Cusumano, M.A. (2011). Technology Strategy and Management Reflections on the Toyota Debacle. Communications of the ACM, 54 (1), 33-35.

John Petersen (2011). Bernstein and Ricardo Report: Cheap Will Beat Cool in Vehicle Electrification. Retrieved from

Lipsey, R.G., & Chrystal, K.A. (2007). Economics. Oxford: Oxford University Press. Retrieved from

Market Consists of All Firms
Words: 580 Length: 2 Pages Document Type: Essay Paper #: 75481562
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Market power can exist when there are substantial barriers to entry into the indus-try. Expectations about incumbent reactions, incumbent advantages, and exit costs all can serve as entry barriers.

The extreme case of a firm with market power is monopoly, where the industry con-sists of only one firm. Here, industry and firm demand curves are one and the same. In contrast to competitive markets, consumers pay more than marginal cost and the firm earns economic profits. Output is restricted from competitive levels. With a monopoly, not all the potential gains from trade are exhausted.

Monopolistic competition is a hybrid between competition and monopoly. It is like mo-nopoly in that firms under both market structures face downward-sloping demand curves. Market power comes from differentiated products. Examples include the toothpaste, golf ball, tennis racket, and shampoo markets. The analyses of output and pricing policies are similar in the two cases. The difference…

Market in Marxist Political Economy
Words: 3905 Length: 13 Pages Document Type: Essay Paper #: 95015033
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An important contribution to the market ideology is that the authors recognized the existence of a relationship between employment and the market. This relationship was based on that the employment, the division of labor and the "human material progress had proceed in parallel with the growth of the market." Otherwise put, there existed a direct relationship between the market and the employment, with the market being the feature which set the tone. An increase of the market would generate an increase in employment and vice versa. However, an increase or decrease in employment would not affect the market as the relationship between the two is unilateral.

Engels, Moore and Jones believed that the future successful implementation of the communist policies would see no major use of the market; "in the society of the future, there would be no mediation through the market. Wealth would satisfy needs directly. It would be…


Callinicos, a., 2004, the Revolutionary Ideas of Karl Marx, 3rd Edition, Bookmarks Publication Ltd.

Engels, F., Marx, K., 2006, Socialism: Utopian and Scientific, Mondial

Groenwegen, P.D., 2003, Classics and Moderns in Economics: Essays on Nineteenth and Twentieth Century Economic Thought, Routledge

Marx, K., 2005, the Eighteenth Brumaire of Louis Bonaparte, Mondial

Market Is Based Upon the
Words: 704 Length: 2 Pages Document Type: Thesis Paper #: 14349205
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The FDA will need to draw a line in the sand -- the goal of clinical trials isn't to save money, it's to test a drug's effectiveness.

Janet Rehnquist recommended that the FDA "exert leadership" on this issue. The complexities of globalized clinical trials do not lend themselves to half-hearted regulatory efforts. The problem with taking a more active role is that the FDA begins to become the regulator of regulators, which casts a wider net on its responsibilities than was ever intended. There is cause to want the FDA to consider the practical concerns, much less the ethical ones, in scaling back the reliance on non-U.S. clinical trials.

3. e agree that monitoring online marketing of drugs is going to be difficult. But since the Internet is the main source of information for a lot of people -- 91 million Americans a year look for health information online. ith…

Works Cited:

Rehnquist, J. (2001). The globalization of clinical trials. Department of Health and Human Services. Retrieved November 14, 2009 from

Porter, M. (1985) Competitive Strategy

Daniloff, C. (2009). Drug companies target teens online. BU Today. Retrieved November 14, 2009 from

Managerial Decision Making and Market Structure
Words: 1532 Length: 5 Pages Document Type: Case Study Paper #: 94174272
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Market Structure and Managerial Decision Making

The objective of this paper is to discuss the concept game theory in the competitive market environment where there are two or more firms competing against one another. The paper cites the examples of Nash equilibrium, prisoner dilemma, and dominant strategy. Moreover, the paper discusses the theory of perfect competition, monopoly, monopolistic market and theory of oligopoly. (Bhat, and au, 2008).

Game Theory

The game theory is a type of situation where the rewards or payoff given to any player depends on the action of the other players. The interdependence between two or more firms is referred as a game theory, and the rewards earned by a firm is known as a payoff, and the payoff matrix assists in analyzing the interdependence between firms. A duopoly is an interdependence between two players that may result in a game theory. However, a relationship between two…


Bhat, M.S., and Rau, A.V. (2008). Managerial Economics and Financial Analysis, Hyderabad, IND BS Publications, ProQuest ebrary. Web. Retrieved April 20, 2016, Chapter 4: Market Structures, pp. 85-107.

Krugman, P. & Wells, R. (2012). Economics and Microeconomics (Third Edition). Worth Publisher.

Mjmfoodie. (2011). Episode 29 Monopolistic Competition [Video File]. Retrieved from 

Links to Government Regulation of Monopoly

Competitor Product's Market a Short History of
Words: 1695 Length: 6 Pages Document Type: Essay Paper #: 68343790
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Competitor Product's Market

A short history of the organization and a description of their product

Hostess Brands, Inc. is a company set up in 1930 under the name Interstate Bakeries that later changed to Hostess Brands Inc. In November 2009. The company is located in the United States with its headquarters in Irving Texas. It has an operation centre in Kansas City, Missouri. The company works as a distributor and wholesale baker of snacks in the United States. It owns many brands such as Nature's Pride, Wonder Bread, Bakers Inn, Drake's and Dolly Madison. The company makes and sells cakes, loaves, snacks and rolls under different bakery brands (Smith, 2012).

These brands also make blue berry muffins, cheese Danishes, food cake donuts, honey buns and bear claws among others. Hostess gets revenue through selling of baked goods to mass marketers, supermarkets and stores in the U.S. The privately held bread…


Blythe, J., & Zimmerman, A.S. (2005). Business-to-business marketing management: A global perspective. London: Thomson Learning.

McEachern, W.A. (2012). Microeconomics: A contemporary introduction. Mason, OH: South-Western Cengage Learning.

Smith, A.F. (2012). Fast food and junk food: An encyclopedia of what we love to eat. Santa Barbara, Calif: Greenwood.

Welch, P.J., & Welch, G.F. (2009). Economics: Theory and practice. Hoboken, N.J: Wiley.

Open Market Operations
Words: 4395 Length: 15 Pages Document Type: Term Paper Paper #: 42753242
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Open Market Operations

Monetary policy may involve several facets, including reserve requirements, discount rate and interest rate targeting. The U.S. Federal Reserve's long-time strategy has been to use interest rate targeting through Open Market Operations primarily to keep the economy in its attempts to keep the economy in a state of equilibrium.

Today, open market operations (purchase and sale of U.S. Treasury and other federal agency securities) are the principal tool used by the Federal Reserve in implementing monetary policy (Federal Reserve eb site). The Federal Open Market Committee (FOMC) of the Federal Reserve decides on the short-term objective, an objective that can be either a desired quantity of reserves of a desired price, also called the federal funds rate; this, in turn, will have the effect of making interest rates increase or decrease. "The federal funds rate is the interest rate at which depository institutions lend balances at the…

Works Cited

Chappell, Henry W., Rob Roy McGregor, and Todd Vermilyea. "Majority Rule, Consensus Building, and the Power of the Chairman: Arthur Burns and the FOMC." Journal of Money, Credit & Banking 36.3 (2004): 407+. Questia. 19 Apr. 2005 .

Chappell Jr., Henry W., and Rob Roy McGregor. "A Long History of FOMC Voting Behavior." Southern Economic Journal 66.4 (2000): 906. Questia. 19 Apr. 2005 .

Open market operations. 2005. Federal Reserve, 

Orphanides, Athanasios. "Monetary Policy Rules, Macroeconomic Stability, and Inflation: A View from the Trenches." Journal of Money, Credit & Banking 36.2 (2004): 151+. Questia. 19 Apr. 2005 .

Adidas Market Entry
Words: 2593 Length: 8 Pages Document Type: Research Paper Paper #: 41746013
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Company Background

Adidas was formed in Herzogenaurach, a town in Mittelfranken, north of Nürnberg, not far from Erlangen, and remains headquartered there today. The company was founded by Adi and Rudolf Dassler. The brothers eventually had a falling out, with Rudolph founding Puma. Adidas has grown to become one of the leading designers and marketers of sports apparel, footballs, and other related items. The company operates globally, has revenues of nearly €20 billion, and profits of €0.72 billion in 2015 (Adidas 2015 Annual Report).

Adidas competes against Nike, Reebok, Puma, and several other brands in this space. Major product lines include footwear, apparel, and footballs. Adidas sponsors a lot of athletes and athletic clubs as part of its marketing. Ultimately, this industry is characterized by incremental changes to basic product designs, a strategic emphasis on marketing spending, and distribution, and companies that utilize a global strategy, selling the same way…

Game Theory Does Explains Market
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c) Mutual Interdependence: This assumption is based on the relationship between two or more individuals where one person depends upon the other for economic interest or benefit. When making a decision one has to consider the effect of his or her decision to the partner. This is common in the Perfect competition -- pure market phenomenon.

With the assumptions above the game theory helps in developing a perfect competition among the consumers.

Goal theory in perfect competition market

It tends to describe market structure based on assumptions which are non-existent, most market systems are imperfect, however the long run and short run situations can help in holding the assumption to be true based on the equilibrium, price and output.

Basic assumptions required for conditions of pure competition to exist as below;

Many small firms: Each producer producing a significant percentage in the total output in the market hence has no…


David K.L., (2011). Economic and Game Theory, what is Game Theory. Retrieved April

21, 2011 from

Geoff R., (2006). Perfect Competition. Retrieved April 21, 2011 from 

Theodore L.T. & Bernhard S., (2001). Game Theory. Texas a&M University, London School of Economics, DAM Research Report LSE-CDAM-2001-09 Retrieved April 21, 2011 from

Capital Fall if Financial Markets Are No
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capital fall if financial markets are no longer segmented? What evidence is there of this effect?

Up until the mid-1940's markets where knows to be restrictive in cash flow movement, this in combination with tax and transactional barriers on ownership by foreign entities meant that equity markets were not developed. They were in fact marked with low liquidity, not enough regulation and inconsistent disclosures.

If capital markets are segmented, then investors can only invest domestically. This means that the market portfolio (M) in the CAPM formula would be the domestic portfolio instead of the world portfolio.

This equilibrium had banks, securities market and capital markets as the primary source of finance. The localized source of finance meant that domestic investors were they only players in the market with most shares, resulting in high cost of capital.

1970's brought on the liberalization of markets in the developed countries which resulted in…


Basak, Suleman. "An intertemporal model of international capital market segmentation."

Journal of Financial and Quantitative Analysis 31 (1996) 161-188.

Bekaert, Geert and Campbell R. Harvey. "Time-varying world market integration."

Journal of Finance 50 (1995) 403-444.

Worldwide Energy Market Focusing on
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However, they are worth considering on the long haul. Since the oil and gas reserves are suffering from a chronic shortage, a major company such as Exxon should think strategically and expand into this area. The discussion is more complex, in the sense that intensive research and development efforts are needed to both improve the above mentioned alternatives and to discover new sources of energy.

Exxon Financial esults

Due to the high crude-oil and natural gas prices, in the context of a busy hurricane seasons in the Gulf of Mexico, Exxon has reported record figures for 2005, mounting up to $36 billion in net income and 31% return on average capital.

Source: Exxon Mobil 2005 Company eport

The results Exxon reported for the 2005 fiscal year are impressive:

record earnings of $36 billion, up 46%;

net income per common share of $5.76;

net income to average shareholder's equity of 339%…


Armstrong, M. 2003, Human resource management practice, (9th ed.), Kogan Page Limited, London

Litle, J. 2005, Get Rich - While Exxon Goes Broke, Retrieved Online from URL: 

Logan, A. And Grossman D. 2006, ExxonMobil's Corporate Governance on Climate Change, Ceres & the Investor Network on Climate Risk

Maxwell C. And Feshbach B., Energetic Discussion, Retrieved Online from URL:

Run Equilibrium the Aggregate Supply
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The hiring would then lead to an increase in consumer spending, which could encourage other businesses to increase their hiring as well. The increased business investment could allow companies to develop processes, technology and capacities that will allow them to not only increase their presence in domestic markets but to increase their exports as well. The Keynesian as-AD model assumes that this multiplier will result in an increase in aggregate demand and aggregate supply, if governments increase spending. For the government, the multiplier is expected to decrease with the size of the investment, so the ideal amount of spending is not infinite, but is constrained by a declining multiplier, which would lead to an equilibrium level of government spending.

The as-AD model illustrates another reason by government spending cannot be infinite. As and AD increase, P also increases. This means that inflation occurs as demand and supply in the economy…

Works Cited:

Moffatt, M. (2010). Aggregate demand and aggregate supply practice question. Retrieved June 17, 2010 from

Nursing Market
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Health Care Economics

Monopsony power is defined as a situation where there is only a single buyer in the market (Investopedia, 2014). In a monopsony situation, all of the bargaining power rests with the buyer, such that the seller is a price taker, and also a taker on term as well. The buyer therefore pays what it wants, and on whatever terms. A monopsony is an unusual natural market condition. In some situations, monopsony is related to monopoly, a good example being health care in Canada, where the government is the employer. With a government monopoly, there is also only one buyer for health care supplies, and health care labor. Unions can also constitute a monopsony in labor, in situations where non-union workers are prohibited. One must work to the terms that the union has negotiated, or not at all. This paper will look at the nursing shortage in the…


Buchan, J., Parkin, T., & Sochalski, J. (2003). International nurse mobility. World Health Organization. Retrieved December 1, 2014 from 

Goodin, H. (2003). The nursing shortage in the United States of America: An integrative review of the literature. Journal of Advanced Nursing. Vol. 43 (4) 335-350.

Investopedia. (2014). Monopsony . Investopedia. Retrieved December 1, 2014 from 

Link, C. & Landon, J. (1975). Monopsony and union power in the market for nurses. Southern Economic Journal. Vol. 41 (4) 649-659.

Product Not on the Market
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a) The product is a food replicator. This product can rearrange the particles in the air and turn them into comestibles. The user will simply enter the food that he or she wants to eat, and the replicator will create it. There will be models that are focused on different ethnic cuisines, so if somebody in the U.S. asks for chicken and waffles, they can get that, and if someone in Singapore wants chicken rice, that can be arranged.

b) The market is going to consist of high net worth individuals. This is because the replicator is expensive to produce. Also as a unique product it has a lot of inherent value to people, especially given the popularity of fine dining these days. So net worth is the primary segmentation variable. Income is a proxy for this.

c) I chose this method of customer segmentation because the product costs…

ehavioral Finance and Human Interaction a Study of the Decision-Making

Processes Impacting Financial Markets

Understanding the Stock Market

Contrasting Financial Theories

Flaws of the Efficient Market Hypothesis

Financial ubbles and Chaos

The stock market's dominant theory, the efficient market hypothesis (EMH) has been greatly criticized recently for its failure to account for human errors, heuristic bias, use of misinformation, psychological tendencies, in determining future expected performance and obtainable profits.

Existing evidence indicates that past confidence in the EMH may have been misdirected, as the theory's models do not show a thorough understanding of trading operations in a realistic light.

Researchers have suggested that a variety of anomalies and inconsistent historical results demand that traditional financial theories, namely the EMH, be reconstructed to include human interaction as a key decision-making process that directly affects the performance of financial markets.

This research paper aims to determine whether or not there is a…


Barrett, Larry. (January, 2001). Emotional investing a recipe for disaster. CNET

Bernstein, Peter. (1998). Against the Gods: The Remarkable Story of Risk. New York, NY: John Wiley & Sons.

Brennan, Phil. (March 12, 2002) The Great Stock Market Scam.

Business Week. (September 29, 1997) The Perils of Investing Too Close to Home.

Law of Demand Changes in Supply and
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Law of Demand

Changes in supply and demand of goods and services lead to a shift in equilibrium. Business managers have to be seized of how market equilibrium is sought in order to make robust business decisions that can pay-off. Market equilibrium is attained when the quantity demanded by the consumers corresponds to the quantity that the firms are willing to supply bearing in mind that equilibrium is basically the price quantity pair where the quantity demanded corresponds to the quantity supplied (Vienneau, 2005). Business enterprises have to be aware of the nuances of the market equilibrium.

Economists postulate that other things held constant, an increase in price of a commodity will make the quantity of that commodity demanded to decline and vice-versa. The demand of a commodity is the amount of that commodity that is bought per unit time at a particular price. An individual will demand a specific…

References List

Garegnani, P., (1970). Heterogeneous Capital, the Production Function and the Theory of Distribution. Review of Economic Studies, 37(3), 407 -- 436.

Sullivan, A. & Sheffrin, S.M. (2003). Economics: Principles in Action. Upper Saddle River,

New Jersey: Pearson Prentice Hall.

Vienneau, R.L. (2005). On Labour Demand and Equilibria of the Firm. Manchester School,

Public Goods Private Goods Common Resources and
Words: 1216 Length: 4 Pages Document Type: Essay Paper #: 21309193
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public goods, private goods, common resources, and natural monopolies.

Public goods are when there is a focus on providing benefits to someone without them having to offer different forms of compensation. This is because the interests of the community will outweigh the need for making any kind of profit. Some examples of this include: fire, police, and national defense. Private goods are those products that are sold directly to consumers with the intention of making a profit. This is when a private producer, will realize that there is unmet demand and provide this to consumers. In exchange for delivering these services or products, they will receive some form of compensation. (Mankiw, 2011)

Common resources are those reserves that are available to everyone. The most notable include: the fish in the ocean, the air that everybody is breathing and public lands. While natural monopolies are when there is one organization which…


Coffee Industry. (2010). Iowa State University. Retrieved from: -- %20Myers.pdf

Mankiw, N. (2011). Principles of Economics. Mason, OH: Thomason.

Simon, B. (2009). Everything but the Coffee. Berkley, CA: University of California Press.

Economics of Public Policy
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Monopolies and Trusts:

Appropriate Areas for Government Intervention?

Capitalism is the economic system that has dominated the United States virtually since the day of its independence. A social and economic system based on the recognition of individual rights; capitalism demands that owners' rights to control, enjoy, and dispose of their own property must be respected. In a capitalist system, the purpose of government is to protect individual economic rights, and to make sure that no one individual, or group may employ physical or coercive force upon any other group or individual. The success of capitalism is well evident. The surpluses that this system produces have enabled individuals to experiment; to create new products, and market new ideas. These private surpluses are traded in a free market in direct competition with other buyers and sellers. Such competition is best represented by the efforts of two or more parties acting independently to…

Commodity or Resource Such as
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Additionally, another imbalance is generated by the reduced bargaining power of the employees, who are no longer able to switch jobs. Additionally, when a monopoly is formed, the employees are rarely presented with the opportunity / possibility of forming or joining unions.

In an oligopoly situation, the situation is similar to a monopoly, with the specification that the employees are better able to negotiate terms and conditions as they have the ability to switch employers. An oligopoly is formed when the employment power -- or the demand for labor force -- is held by two or more organizations which joined forces on the market and an example is offered by the American automobile industry. Here however, other forces include the disequilibrium, such as more and more popular outsourcing operations or the search for hi-tech technicians. The annexed table reveals the market equilibrium for the auto industry in various contexts.



Whole Foods Market Website,  / last accessed on June 16, 2010

Web Activities That Were to
Words: 1261 Length: 4 Pages Document Type: Assessment Paper #: 86484837
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Due to increase in exports the trade deficit decreases. Whereas, the contractionary monetary policy has a negative impact on the balance of trade account as it leads towards a decrease in government expenditure, production and exports. Because of the decrease in exports, the trade deficit increases. (Schiller, 2010)

Money and Its Functions

Money can be defined as anything which is generally accepted in exchange for goods and services and which acts as a medium and store of value. The three major functions of money are; 1) it acts as a medium of exchange and is accepted as a payment for goods and services, 2) the value of different products is measured in terms of money, 3) it acts as a store of value because it is generally accepted as a medium of exchange and has a stable value. Banks usually create money in the economy by issuing loans and by…


Bradley Cooper. (2013, May 15). Retrieved from 

Richter, J., & Troszkiewicz, a. (2013, May 14). Copper futures fall most in two weeks on china demand concerns. Retrieved from 

Schiller, B. (2010). Essentials of Economics (8th Ed.). New York, NY: McGraw-Hill/Irwin.

Business According to Different Sources
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With natural monopolies, these are excludable, but not rival. Examples in this area can range from fire protection to cable TV, anywhere along the lines of the general characteristics of this category of goods.

In terms of the labor market and labor market equilibrium, the functionalities are similar to all of the other market, with supply and demand on the market working towards establishing the right price and quantity for the respective resource (in this case, the labor force). An exceeding supply of workers on the labor market amounts to a lower price for that respective resource, as well as to potential unemployment. Realistically, this may also lead to unemployed, without the market providing the right amount of positions for that respective category of workers. When there is an excess in demand, the wage goes up, because those workers are more required on the market, in the conditions of a…


1. Mas-Colell, Andreu; Whinston, Michael; Green Jerry. 1995. Microeconomic Theory. Oxford University Press.

2. Gravelle, Hugh. 2004. Microeconomics. Pearson Education.

Maximizing Profits in the Present Day and
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Maximizing Profits

In the present day and age, several market structures are existent in the global economy. Each and every market structure is distinct in its way of being run and the power that it has over market prices, trend setting and demand. The key element that helps in distinguishing between different market structures is mainly the amount of competition present between several producers of a single type of product. In this paper, the characteristics and means of maximizing profits alongside the barriers to enter the market will be seen and the role of each structure in an economy will be explained.

Markets in which there is a high amount of competition (mostly referred to as competitive markets) are such that no single producer or consumer has the ability to alone influence the price of products in them. This means that if a producer tries to exploit consumers by raising…


Grant, S. (2008). Economics student book. Heinemann Lipsey, R.G. (2007). Economics. Oxford University Press.

Taylor, M.P. (2011). Economics. Cengage Learning EMA.

Titley, B. (1989). Economics. Oxford University Press.

Economical Strategies Report for Profit
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This means that during full agricultural seasons, prices will be lower, while during extra season, prices will increase. The price increase is explained by a lower and more difficult production of fruits and vegetables during winter times and also by the necessity to properly store the goods produced during the full season so that they remain fresh. In all, the retail price has to incorporate the production, transportation and storage costs and also the company's profit.

Price Increase

Currently, the average price promoted by Wokland is of 17 dollars per one kilogram of fruits and 10 dollars per one kilogram of vegetables. The net profit for 2005 was of 1.7 million dollars and the net profit for 2006 was of 1.5 million. In order to reach the desired 2 million dollars profit in 2007, the company has to increase their revenue sales by 33%. The easiest way to achieve increased…


Koplin, H.T., 1963, the Profit Maximization Assumption, Oxford Economic Papers, Volume 15, Number 2

Lipsey, R.G., Chrystal, K.A., 1989, Introduction to Positive Economics, 7 Rev Edition, Weidenfeld & Nicolson

Schneider, G., Knoedler, J., Sackrey, C., 2005, Introduction to Political Economy, 4th Edition, Dollars & Sense / Economic Affairs Bureau Inc.

Roth, R., 2001, Organic or not Organic? Serendip, First Report Web,,last  accessed on October 31, 2007

Production Possibilities Frontier -- 'Guns
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Market equilibrium occurs when supply and demand are at their optimal level, when supply is equal to demand and ideally the price commanded earns a profit for the producer yet is not prohibitively high for the purchaser of the good. To reach this, there is always a period of negotiation. As price goes up, demand goes down, and as the price goes down, demand goes up. As the price goes down, suppliers are less willing to supply their goods, and as price goes up, suppliers are more eager to use more of their finite resources to supply that good or service. These are the laws of supply and demand, simply put. But when dealing with the supply and demand for many goods and services in the national economy, filled with substitute goods and many other external factors that impact these forces, or in government, this negotiation takes far longer to…

Price Rationing and Risk Price Rationing &
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Price ationing and isk

Price ationing & isk

A price ceiling artificially sets the price of a good below the market equilibrium price. With a price ceiling in effect the price is lower, supply is lower and quantity demanded is higher than quantity supplied. Price ceilings are effective in keeping the price of a product low but this unbalance results in excess quantity demanded. When rationing is implemented it is a form of a command economy.

Coupons are a way to manage the demand and to ensure that the maximum amount people who demand the good at such a low supply receive the good. In short, effective use of rationing coupons helps to efficient allocation of scarce resources. Without couponing, those whose demand allows them to purchase more at the artificial price would consume more of the good leaving less for others. Some contend coupons are ineffective since the supply…


Organizational Risk Tolerance. (n.d.). Prioritizing Projects and Optimally Allocating Resources . Retrieved November 6, 2011, from 

Taylor, B. (n.d.). Price Ceilings - Economics. Fundamental Economics. Retrieved November 5, 2011, from

Economic Basics - Terms and Concepts
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Firm, Labor Markets, and Imperfect Information


Perfect Competition and Monopolistic Competition

A perfectly competitive market does not have barriers to entry or exit and is characterized by many producers and many consumers, all of whom are price takers -- a term that means the suppliers and the buyers cannot effect the price as they do not have market power ("Competitive Markets," 2014). Monopolistic competitive markets are do have some barriers to entry and exit. Consumers can find substitutes for all of the goods in a competitive market, whereas high product differentiation is seen in a monopolistic competitive market ("Competitive Markets," 2014). Indeed, one of the reasons that a firm can achieve a monopoly for a product is that the business has been successful in its efforts to differentiate a product, as perceived by its customers. The ability of a business to make profits in the long-run is referred to…


Blanding, M. (2014, August 11). The business of behavioral economics. HBS Working Knowledge. Cambridge, MA: Harvard Business Review. Retreived from 

Cardon, J.H., and Hendel, I. (2001). Asymmetric information in health insurance: evidence from the National Medical Expenditure Survey. Rand Journal of Economics, 32 (3), 408 -- 427. JSTOR 2696362. Retreived from 

Chiappori, P.A., and Salanie, B. (2000). Testing for asymmetric information in insurance markets. Journal of Political Economy, 108(1), 56 -- 78. doi:10.1086/262111. Retrieved from

Consumer Product and Describe Both
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The concept of the multiplier effect is closely related to the concept of marginal propensity to spend and consume. Marginal propensity can be understood as the increase in personal consumer consumption and saving that occurs with an increase in disposable income. When fiscal policy creates more disposable income for a family, the concept of marginal propensity predicts how much more they would be save and spend. Thus marginal propensity predicts the actual impact of fiscal policy when it is enacted and thus it can calculate the multiplier effect.

Prepare an essay describing Keynesian economic theory. Be sure to fully explain what is being critiqued and why. You should also be clear on why you find this particular critique so compelling. (600 words).

Keynesian economic was developed in the 20th century by the British economist John Keynes. Keynesian economics is basically a reinvention of classical economic theory, it focuses upon a…

P&G Operations in India
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Proctor & Gamble- Milestone

Head & Shoulders remain one of the most celebrated and recognized names in the hair care market for over fifty years. This renowned global brand was launched by Proctor & Gamble (P&G). The company is the leading producer of hair care products across the world, with their Head & Shoulders product securing over 20% market share. ecently, P&G's beauty unit made 30% in net sales and 30% of net earnings. esearch estimates that at least 50% of the world population is suffering from dandruff at least once in their lifetime. This renders it the most common type of scalp issue. Head & Shoulders has become one of the most widely known across the globe; selling a gigantic 150 bottles of the anti-dandruff formula each minute. Head & Shoulders are excelling regarding their marketing strategy. For a new product to penetrate, brand endorsements with powerful and related…


FAQ. (2015). Head and Shoulders. Retrieved from 

Head and Shoulders: World Leaders in Dandruff and Scalp Care. (2015). Head and Shoulders. Retrieved from 

Bhushan, R., Malviya, S. (2012). Grocery prices rise by up to 15% despite weak

Consumer demand. IndiaTimes. Retrieved from

Knowledge and Proficiency in Economics
Words: 2757 Length: 8 Pages Document Type: Essay Paper #: 61604525
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The third degree discrimination is when businesses set prices depending on the location and the market segments. Here the supplier will identify the various market segments and have varying prices for the same item due to the varying consumer classes in these regions. The sales managers always have to look at the characteristics of the market and the customers in general.

The factors that the sellers consider here are age of the potential clients and their population in a given area, the economic standards and their purchasing history. This will enable the recommendation of varying prices for the different market segments. This is a discrimination criterion frequently used by the textile industry run by my father in Indonesia and particularly on the export textile. He has countries that will generally buy at higher rates than others hence he does his research and sets the prices accordingly.

It is noteworthy that…


Business Growth Strategies, (2011). Value Propositions. Retrieved August 17, 2011 from

Merriam Webster, (2011). Economics. Retrieved August 17, 2011 from http://www.merriam-

Michael E.P. & Mark R.K., (2006). Strategy and Society: The Link Between Competitive

Economic Rent and Describe the
Words: 739 Length: 2 Pages Document Type: Essay Paper #: 74221495
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If regulation upon the monopoly did not exist, the monopolist could charge whatever price it desired, so long as people did not stop buying the product altogether. A monopoly means that a company has no rivals in the market producing the same or a similar product and there are few comparable goods and services that act as substitutes. For a necessary good or service (such as transportation or utilities) the effects upon consumers can be potentially devastating, without price ceilings curtailing the monopoly's ability to charge high prices and ration its supplies.

To replicate a competitive market the price ceiling must reflect the natural equilibrium price, taking into consideration current demand and supply and reflecting the costs of production. However, this can be extremely difficult to institute, given that equilibrium price reflects micro-level changes and readjustments to shifts in supply and demand that the government cannot immediately take into account…


Economic rent. (2011). The Economist. Retrieved February 24, 2011 from the World Wide Web: 

Rockoff, Hugh. (2008). Price controls. The Concise Encyclopedia of Economics.

Library of Economics and Liberty. Retrieved February 24, 2011 from the World Wide

Entrepreneurs the Kirznerian Entrepreneur vs The Schumpeterian
Words: 494 Length: 2 Pages Document Type: Essay Paper #: 21722579
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The Kirznerian Entrepreneur vs. The Schumpeterian Entrepreneur

The following brief essay will discuss two kinds of entrepreneurs, as evidenced in the title above. These two kinds of entrepreneurs, Kirznerian and Schumpeterian, will be theoretically and practically espoused, in order to see which of the two is more common in business life. The essay will also speak as to which type of entrepreneur is more important in today's business world, thereby linking theory and practicality prior to concluding.

First, it is important to define each entrepreneurial theory. The Kirznerian Entrepreneur, for instance, derives from economist Israel Kirzner's theory. Kirzner utilizes an analogy between what he names "the entrepreneurial element in individual decision -- making" and "entrepreneurship in the market interaction." (Kirzner, 1967) According to the economist, a first step in establishing the roots of the theory is to discuss an individual's 'action.' Kirzner thus isolates the first step of the…


Kirzner, Israel.(1967) "Methodological Individualism, Market Equilibrium, and Market Process."

Il Politico. 32: 787-799.

Schumpeter, Joseph A. The Theory of Economic Development. 1911. Cambridge: Harvard University Press, 1934. Information about Schumpeter and his works can be found online at:

Industry- the Case of Microsoft
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The regulations are necessary to the extent they reduce externality likely to about from the merger. There is also concern that the government may incur a higher cost in paying for unemployment benefits which necessitates it regulations in mergers.

Provision of market activity

Other than the above two likely reasons for government involvement, the government may have non-economic reasons. Such activities include the national security which is a public good which is related to welfare. The government intervene in market activities so that they can provide welfare commodities and products that otherwise cannot be provided for under the market mechanism. The provision of public goods such as defense and security is only possible through government interventions. Government regulations and interventions ensure that society does not miss production of welfare commodities that the market cannot produce.

Cultural Identity Promotion

This includes aspects such as sustaining productive capacity, producing for the future…


Deardorff, Alan V., & Jackson, J.H. (1993). "Problems of Regulating Economic Activity in a World of Increasing Interdependence, . New York: Cambridge University Press.

Ginsburg, Martin D., & Levin, J.S. (1989). Mergers, Acquisitions and Leveraged Buyouts. Commerce Clearing House.

Marks, & Lee., M. (2003). Charging Back up the Hill: Workplace Recovery after Mergers, Acquisitions, and Down-sizings. San Francisco: Jossey-Bass.

Polanyi Means by Fictitious Commodities
Words: 1443 Length: 4 Pages Document Type: Essay Paper #: 48692278
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Identify four of these ideas, describing what they are, why they are considered dangerous, and how they might be avoided or mitigated as dangerous ideas

The absence of free will is defended by some scientists today: "British psychologist Susan Blackmore recently contended that our minds are actually nothing but collections of memes that we catch from each other like viruses and that the familiar sense of 'I' is some sort of fiction that memes create for their own agenda" (Davies, 2004, p.37). This idea postulates there is no central truth or morality and can be used to justify almost any moral action. Richard Dawkins has called human beings survival machines, rather than culpable moral actors (Davies, 2004, p.36). But if free will is merely an illusion, how is any action of a being that is subject to the whims of biology or evolution any different than someone who commits a…

Works Cited

Davies, Paul. "Undermining Free Will." Foreign Policy. September/October 2004.

Krugman, Paul. "Can America Stay on Top?" The Journal of Economic Perspectives. 14. 1.

Winter, 2000, pp. 169-175

Saul, R.K. "The Collapse of Globalism." Harper's. 2004.

Business Competitive Intelligence Proposal for
Words: 875 Length: 3 Pages Document Type: Term Paper Paper #: 91927275
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First of all, the Internet, as well as local press and articles, will be important in defining the general characteristics of the market and consumers. Subsequently, specialty articles, edited by business organizations such as the local Chamber of Commerce will provide useful information on all the companies in a certain economic sector, namely the company's direct competitors. Relevant information in terms of the consumers can also be available from public information.

The off-site category will likely provide more in-depth perspectives on local issues. This will include a survey of the local consumers through interviews and questionnaire, as well as the development of a local network of information that could provide helpful information on companies active on the local market and their potential future moves.

Organizational structure and resources

The unit will be organized on the two separate on site/off site categories, each led by a director. The two directors will…


1. What is competitive intelligence? On the Internet at  retrieved on October 25, 2007

2. Competitor Analysis - the Basic Principles of Competitive Intelligence. On the Internet at  retrieved on October 25, 2007

3. Competitive Intelligence Handbook. On the Internet at  retrieved on October 25, 2007

4. Kahaner, Larry. Competitive Intelligence: How to Gather, Analyze, and Use Information to Move Your Business to the Top. Touchstone. 1998.

Worth Debate From a Human
Words: 356 Length: 1 Pages Document Type: Term Paper Paper #: 10870476
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There is also a question of costly salary increases in general, even if the comparable worth system is fairer. This fairness may cost the business extra in needless salary costs, when the employees would be unlikely to look for jobs elsewhere, given that they could not do so for more pay. A private company has a responsibility to make money for its shareholders, and a hospital has a responsibility to the sick to keep costs contained.

Staff discontent is another issue. Undoubtedly, the staff members in the positions that are judged to be too highly paid will feel slighted. If these employees are unionized, they may force the business (in this case a hospital) to undergo costly legal negotiations. If the pay readjustment affects one group disproportionately, for example males, they may allege that reverse discrimination…

Economic Advisor to a Less-Developed
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The nation will enforce law and order to protect its public property, regulate monetary frameworks and correct market failures. The government will be responsible for protecting private life of its citizens and property (Grant & Vidler, 2000).

Market and Competition Forces: the country's economy should be designed in such a way that it will promote competition. This is because competition means a fair deal in obtaining results. The government should increase sellers and buyers in the market because this would promote competition thus increasing the quality and efficiency. With competition, the country will be able to control and manage different functions of its economy (Grant & Vidler, 2000). Demand and supply are the prime market forces determining the production of a country produces and the suitable ways to do so.

Market equilibrium, price and output, are determined by market forces. Therefore, I would recommend that any least developed nation to…


Bahl, Roy, W. (2008). Land taxes vs. property taxes in developing countries. Cambridge,

MA: Lincoln Institute of Land Policy.

Grant, S. & Vidler, C. (2000). Economics in Context. New York: Heinemann.

Hyman, D.N. (2011). Public finance: A contemporary application of theory to policy (10th ed.).