Microeconomics Essays (Examples)

Microeconomics

The most common way of deciding between these two options is through capital budgeting. If the two decisions are mutually exclusive, a net present value analysis will determine which of these options is better for the store in the long run. This type of analysis involves calculating the incremental cash flows that derive from the decision, and then discounting them back to the present day. The up front cash flows should also be included in the calculation. Between two mutually exclusive options, the one with the higher NPV -- as long as it is positive -- is the option that should be selected.

However, in the course of conducting such a calculation, it will become apparent that these two tactics solve different problems. The confusion probably lies in the fact that the root issue is the same. If increasing capacity is the solution (and both of these options increase…

Works Cited:

Baker, S. (2000). Marginal cost and the output rate under competition. Economics Interactive Tutorial. Retrieved March 8, 2012 from http://hadm.sph.sc.edu/courses/ECON/MCost/MCost.html

NetMBA. (2010). Capital budgeting. NetMBA.com. Retrieved March 7, 2012 from  http://www.netmba.com/finance/capital/budgeting/ 

Rittenberg Libby and T. Tregarthen. (2009). Chapter 8: Production and Costs. Sections 1-4 Principles of Microeconomics. FlatworldKnowledge.com. Retrieved December 2, 2011 from:

http://www.flatworldknowledge.com/pub/1.0/principles-microeconomics#web-28308

Microeconomics

The class Principles Microeconomics. text book Principles Microeconomics N. Gregory Mankiw. paper answer questions. Final Project Following a description final project ECO-112. The project parts, answered complete project.

Principles of microeconomics: Products used in daily life

Product 1: A Starbucks latte

Product description and usage

The Starbucks latte is a coffee beverage made with espresso and steamed milk. On the company website it is described as "the original coffeehouse classic. And like most classics, part of its appeal comes from its simplicity. A caffe latte is simply a shot or two of bold, tasty espresso with fresh, sweet steamed milk over it. Some prefer to add syrup or extra espresso to the recipe. Some maintain that it is entirely perfect as is" (Caffe latte, 2012, Starbucks). Starbucks lattes can be consumed 'to go' or drank in Starbucks stores, which often have the advantage for students and commuters of having…

References

Adamy, Jane. (2009). McDonald's seeks ways to keep sizzling. Wall Street Journal. Retrieved:

 http://online.wsj.com/article/SB123664077802177333.html 

Big Mac. (2012). McDonald's. Retrieved:

 http://www.mcdonalds.com/us/en/food/product_nutrition.sandwiches.255.big-mac.html

Microeconomics

The ServiceMaster Company is concerned with the provision of a wide range of services to not only residential but commercial customers as well. Mainly, its services include but are not limited to facility management services, commercial cleaning as well as restoration services. In this text, I describe the type of market ServiceMaster operates in as well as the competition the company faces; if any. I also make submissions on how I think the company can increase its market power.

The Type of Market in Which ServiceMaster Operates

ServiceMaster operates in a monopolistically competitive marketplace based on a careful examination of the specific characteristics of the company as well as the marketplace it operates in. ittenberg & Tregarthen (2009) define monopolistic competition as a situation where we have a large number of firms producing products which are similar but which are in one way or the other differentiated. Further, they…

References

Amadeo, K. (2011). Economy of Scale. Retrieved May 4th, 2011, from About.com Web site:  http://useconomy.about.com/od/glossary/g/economy_scale.htm 

Hasek, C.W., & Dodd, J.H. (2000). Economics: Principles and Applications. Goodwill Trading Co., Inc.

Rittenberg L. & Tregarthen T. (2009). Principles of Microeconomics. Retrieved May 17, 2010 from FlatworldKnowledge.com: http://www.flatworldknowledge.com/pub/1.0/principles-microeconomics#web-28335

Microeconomics

Service Master Pro-is a Company that concerns itself with the provision of a wide variety of services to both firms and residences. The company's flagship brands include but are not limited to TruGreen, AmeriSpec as well as Terminix.

International operations

Currently, Service Master has operations in 14 countries through its vast network of more than 4000 locations. Through its convenient franchise arrangements, the company has continued to expand throughout the world within a relatively short period of time. Though the company's headquarters remain in the U.S.A., ServiceMaster is present (through franchise and company-owned locations) in countries including but not limited to Malaysia, Lebanon, Saudi Arabia, Japan, Spain etc.

The possibilities for further expansion in regard to ServiceMaster seem endless. This assertion is essentially based on the Company's strategy for expansion where it seeks to develop through the issuance of master licenses. This arrangement allows the license owners to not…

References

Burkholder, N.C. (2006). Outsourcing: the definitive view, applications and implications. John Willey and Sons

Flat World Solutions (2011). The Advantages and Disadvantages of Outsourcing. Retrieved May 4th, 2011, from Flat World Solutions Web site:  http://www.flatworldsolutions.com/articles/advantages-disadvantages-outsourcing.php 

Rittenberg L. & Tregarthen T. (2009). Principles of Microeconomics. Retrieved May 17, 2010 from FlatworldKnowledge.com: http://www.flatworldknowledge.com/pub/1.0/principles-microeconomics/28256#web-28256

Microeconomics

Internet service providers in the country are faced with some serious challenges when it comes to microeconomic distribution of resources. They have to consistently provide value-added services in order to be able to gain more customers and retain the existing ones. There are some trade-offs involved when it comes to how big an area the service should cover, who the service should be given to and how to expand or produce their service. "Microeconomics emphasizes the trade-offs inherent in solving allocation problems. The act of allocating resources of necessity involves all people who act as producers or as consumers, who benefit by trading with other people, and whose actions affect, for good or for ill, the quality of life." [1] In our areas, it is Cox Communication that is very popular with residents for Internet service. Along with Internet, they also provide television cable and telephone services. Most people…

References

[1] ECONOMICS 260: PRINCIPLES OF MICROECONOMICS  http://www.reg.niu.edu/regrec/gened/ECON%20260.htm  (Accessed 20th July 2005)

[2] Dennis P. Wilson. Economic Analysis - Econ 5311  http://www.uta.edu/dpwilson/analysis/5311.htm  (Accessed 20th July 2005)

Microeconomics: Differentiating Between Market Structures in an Organization

Microeconomics

Electronics Industry

The electronics industry has become one of the largest and fastest growing industries which generate billions of dollars every year. The major products of this industry include personal computers, laptops, mobile phones, televisions, digital cameras, music players, telephones, speakers, recording media, and all types of accessories for these products. The operations, performance, and profitability of the participants of electronics industry is affected by a large number of market forces like technological advancements, competitive pressures, consumer behavior, governmental policies, and economic situations of the target countries.

Sony Electronics Corporation

Sony is one of the top market leaders in the electronics industry of the world. It manufactures, promotes, and sells a large variety of electronics and technological products at very competitive prices. The Sony products are recognized all over the world for their quality, reliability, and a real value for the…

References

Ferrell, O. & Hartline, M. (2011). Marketing Strategy, 5th Edition. Australia: South-Western Cengage Learning

Hall, R.E. & Lieberman, M. (2010). Micro Economics: Principles and Applications, 5th Edition. Mason, OH: South-Western, Cengage Learning

Lancaster, G. & Withey, F. (2007). Marketing Fundamentals, 2nd Edition. U.K: Butterworth-Heinemann

Paley, N. (2006). The Manager's Guide to Competitive Marketing Strategies, 3rd Edition. London: Thorogood Corporation

Microeconomics Final Project: Product Analysis

This text will largely concern itself with two products most of us use in our daily lives. Amongst other things, the text will in addition to describing the products also highlight the various factors that influence the demand and supply of the said products. Further, the products' available substitutes as well as complements will be identified. Later on, the long-term prospects of both products will be analyzed.

Product Description

The products I chose to use for this analysis are GlaxoSmithKline's Aquafresh toothpaste and Hewlett Packard's personal computers. Aquafresh is a toothpaste brand manufactured by GlaxoSmithKline. The same is available in several varieties including but not limited to Aquafresh Ultimate and Aquafresh Triple Protection. Apart form the toothpaste, GlaxoSmithKline manufactures a wide range of other products (mostly pharmaceutical). On the other hand, HP's personal computers include general-purpose computers of varying capabilities, sizes as well as prices.…

There are four types, or causes, of market failure. Monopolies exist where a single buyer or seller is able to exert significant influence over prices or output. To minimize such market failures, antitrust regulations are implemented. In recent years, Microsoft has been accused of violating antitrust regulations and thus being a monopoly. The accusation is that Microsoft, as a seller, is able to control the market place, thus reducing competition and creating a market failure.

pecifically, the decision of United tates v. Microsoft, issued on April 3, 2000, called the company an "abusive monopoly." The suit arose out of the merging of Microsoft and Internet Explorer (created when the company bought out Netscape). The decision further required that the company split into two separate units, one for its windows-based features and one for its Internet-based features. However, part of this ruling was subsequently overturned by a federal appeals court and…

Specifically, the decision of United States v. Microsoft, issued on April 3, 2000, called the company an "abusive monopoly." The suit arose out of the merging of Microsoft and Internet Explorer (created when the company bought out Netscape). The decision further required that the company split into two separate units, one for its windows-based features and one for its Internet-based features. However, part of this ruling was subsequently overturned by a federal appeals court and the case was eventually settled with the U.S. Department of Justice in 2001. The settlement requires Microsoft to share its appliation programming interfaces with third-party companies and appoint a panel of three individuals who will have full access to all the company's systems, records and source codes for a period of five years in order to ensure compliance. Interestingly, the settlement does not require Microsoft from refraining from tying its other software with Windows in the future.

The courts eventual approval of this settlement has been met with much criticism from the microeconomics sector. For one, many saw it as merely a slap on the wrist, believing that free market competition can only be restored with government intervention to breakup the Microsoft monopoly. These individuals argue that because Microsoft creates software only compatible with Windows, along with Internet services only compatible with Windows, they have created a monopoly in this area, essentially cutting off all roads for possible competition and therefore leading to a failure in the market. In fact, Andrew Chin said of the ruling gave Microsoft, "a special antitrust immunity to license Windows and other 'platform software' under contractual terms that destroy freedom of competition."

Specifically, Microsoft operates as a coercive monopoly under microeconomic principles, essentially able to influence the market through coercion. A coercive monopoly is one where a business is able to make pricing and production decision independent of competitive forces because all potential competition is barred from entering the market. According to the principles of microeconomics, a market depends on open competition in order to maintain the supply and demand balance and benefit the consumer. Because Microsoft has created a monopoly, the market principle as promoted by microeconomics, is failing.

Microeconomics is one of those subjects that I knew little about before I started. In the course of studying it, I came to appreciate the value it has, not only for describing elements of how the world works, but for the way I could apply it to my daily life. By the end of the course, I could see the decisions that I was making in microeconomic terms; this actually helped me to make better decisions. I am glad that I was able to take this course and gain this knowledge about decision-making processes.

The economics of how we make our micro-level decisions is a fascinating study. Normally we think of GDP and other macroeconomic subjects as economics, so it is interesting to see the link between microeconomics, macro and the real world decisions we always make. This unique element of economic study takes the familiar economic concept of opportunity…

Microeconomics Across the orld

Comparing the Economies of Two Countries with Regard to Pricing Structures

ith notable exceptions, such as Cuba and North Korea, most of the major global economic powers have within their national microeconomic or internal frameworks, some forms or a semblance of a competitive, capitalist economies. In other words, individual economic actors such as firms compete for the monetary confidence of consumers within particular industries, rather than having such behavior regulated by the government. As such, the pricing of capitalist-style micro economies are also competitively structured. Pricing within a capitalist system is based upon consumer demand and the desire of suppliers to meet that demand at a state of equilibrium determined by the market. But although this may be the ideal Adam Smith formulation of capitalism in terms of pricing, no nation and no series of markets operates according to such principles in a pure fashion.

The…

Works Cited

EU Financial System. (2004) Retrieved on June 19, 2004 at  http://www.eu-financial-system.org/priorities.html 

Lonely Planet. (2004) Germany: Country Information. Retrieved on June 19, 2004 at  http://www.lonelyplanet.com/destinations/europe/germany/ 

Lonely Planet. (2004) Germany: History. Retrieved on June 19, 2004 at

In the modern world access to resources is affected by, for example, credit ratings (access to capital), unequal access to higher education (access to knowledge), legal considerations (unequal access to legal services) and unequal access to many other key inputs. This is in part caused by increases in complexity of both the inputs themselves and of the systems by which we derive access to those inputs.

The sixth characteristic of perfect competition is the lack of externalities in production or consumption. Any externality can upset the competitive balance. Perfect competition represents a situation where buyers and sellers bargain directly; externalities are influencers on this process and therefore by definition interfere with the condition of perfect competition. Changes in communication, education, transportation and political structures have resulted in significant influence of externalities in most market situations in the world today.

Perfect competition is rare in this world. Modern corporations are built…

Works Cited

No author. (2008). "Perfect Competition - the Economics of Competitive Markets" Tutor2U.net Retrieved November 18, 2008 at  http://tutor2u.net/economics/content/topics/competition/competition.htm 

No author. (2008). "Economics Basics: Monopolies, Oligopolies, and Perfect Competition" Investopedia. Retrieved November 18, 2008 at  http://www.investopedia.com/university/economics/economics6.asp 

Machovec, Frank M. (1995). "Perfect Competition and the Transformation of Economics" Cato Institute. Retrieved November 18, 2008 at  http://www.cato.org/pubs/journal/cj15n2-3-10.html 

Townley, Jay. (2006). "A Case Study in Perfect Competition: The U.S. Bicycle Industry" Jay Townley. Retrieved November 18, 2008 at http://www.jaytownley.com/the-bicycle-industry-competition

This case does not directly illustrate this, because productivity increased 5%. If in the next quarter that productivity gain shrinks, that would demonstrate more clearly the law of diminishing marginal productivity. This is because, for example, if the worker is already working 49 hours in a week, if another hour is added the worker will be less productive in that 50th hour than he/she was in the 49th hour.

Labor and productivity are not related to marginal utility. Marginal utility reflects the additional benefit of an additional unit of spending, where spending refers to consumption. The concept is similar to productivity, because that is spending by business on labor, but productivity is related to dollar value output, whereas utility is related to happiness and other personal benefits. The concepts are similar, but they are not the same and increased labor spending is therefore not related to marginal utility.

The case…

Works Cited:

Investopedia. (2012). Rational choice theory. Investopedia.com. Retrieved January 15, 2012 from  http://www.investopedia.com/terms/r/rational-choice-theory.asp 

Swatos, W. (no date). Rational choice theory. Encyclopedia of Religion and Society. Retrieved January 15, 2012 from  http://hirr.hartsem.edu/ency/Rational.htm

Microeconomics esearch

Microeconomic esearch

Over the last several years, real estate prices have been going through periods of tremendous volatility. This is because the marketplace has shifted and there is a change in the underlying levels of demand. To fully understand what is taking place requires carefully examining an article from the New York Times. During this process, there will be a focus on: the utility derived from a specific product, the changes that occurred with demand, shifts in supply and if it is elastic / inelastic. These variables will provide specific insights which are showing the underlying strengths, weaknesses and potential causes impacting the markets. It is at this point, when greater amounts of clarity will be provided highlighting the long-term effects of these transformations.

Consider the utility derived from a product or service mentioned in the article.

The main utility derived from the product is the need for…

References

Hauser, C. (2011). Sales of new homes fell again in July. The New York Times. Retrieved from:

 http://www.nytimes.com /2011/08/24/business/economy/sales-of-new-homes-in-us-fell-again-in-july.html?_r=0

Goodhart, C. (2007). House Prices and the Macro Economy. Oxford: Oxford University Press.

Weicher, J. (2012). Housing Policy at a Crossroads. Philadelphia, PA: Rowman and Littlefield.

Microeconomics

Supply has an undeniable impact upon price. When supply goes down, price goes up. In this instance, a rapid decrease in supply has led to an increase in the price of lettuce. Unlike producers of other goods and services, farmers cannot always fine-tune their supply according to market demand, because of the impact of the weather upon their ability to produce. Farmers had already planted less lettuce, presumably based upon demand patterns from the year before. Yet demand levels for agricultural products from year-to-year are difficult to predict. For example, when the weather is warmer, people tend to eat more lettuce, even in the winter. Conversely, a scare about the safety of a particular type of produce, like spinach, can cause a rapid downturn in demand.

To make up for the decrease in supply due to a harsh cold snap and still ensure that their input costs are covered,…

Microeconomics Before Referencing

Microeconomics Questions

hat market structure exists for countries that are suppliers of oil in the global economy and how this is helping to cause high oil prices?

The supply of oil is largely regulated by OPEC, a cartel or oligopoly of suppliers. "The producers' cartel OPEC accounts for about half of the world's crude oil exports and attempts to keep prices roughly where it wants them by trimming or lifting supplies to the market" ("hy are oil prices so high," 2004, BBC News). The OPEC cartel is characterized by almost all of the major economic elements of an oligopoly, including interdependence of the member countries, in which each oligopolistic nation carefully monitors the activities of other nations, to keep costs down. There is rigid control over prices, to keep prices up, as in a perfectly competitive market that is not advantageous to sellers, more independent competitors are…

Works Cited

Oligopoly." (2000). AmosWEB Encyclonomic WEB*pedia. http://www.AmosWEB.com.AmosWEB LLC, 2000-2008. Accessed March 6, 2008 at  http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=oligopoly 

Tassava, Christopher J. (2008). "The American Economy during World War II." Economic History Encyclopedia. EH.net. Retrieved March 6, 2008 at http:/ / the.net/encyclopedia/article/tassava.WWII

Why are oil prices so high?" (28 Sept 2004). BBC News. Retrieved March 6, 2008 at  http://news.bbc.co.uk/1/hi/business/3708951.stm

Microeconomics Case

Please view attached docs included works cited page end paper. Title paper Microeconomics Case

Microeconomics case assignment 3: Why are athletes' salaries so high?

Perhaps the most obvious reason for the stratospheric nature of athletes' salaries is the unique talents that athletes possess. A doctor, nurse, or teacher may perform far more vital functions for society. But even in such competitive white-collar professions, few doctors and teachers are irreplaceable. Professional elite athletes possess very specialized skills and talents so they can command absurdly high salaries. Wages in any labor market are determined by the laws of supply and demand, not social justice. In a command economy, the state could determine that a firefighter should earn more than an athlete, but not in a capitalist system. The benefits a teacher provides a student, while considerable, are often only manifest in economic terms after many years. In contrast, a baseball…

Education. University of Wisconsin-Parkside. Retrieved on November 15, 2010 from:  http://www.uwp.edu/departments/economics/cee/teaching_resources/lesson03.html 

Landsburg, S. (2000). At $10 a fan, that's $17 million. The New York Times. Retrieved November 15, 2010 from: http://web.jjay.cuny.edu/awinson/Jeter.htm

McLaughlin, D (2007). Rich athletes, poor teachers. Ludwig Von Mises Institute. Retrieved on November 15, 2010 from:  http://mises.org/story/2626

Microeconomics

Suppose that two people, Michelle and James each live alone in an isolated region. They each have the same resources available, and they grow potatoes and raise chickens. If Michelle devotes all her resources to growing potatoes, she can raise 200 pounds of potatoes per year. If she devotes all her resources to raising chickens, she can raise 50 chickens per year. (If she apportions some resources to each, then she can produce any linear combination of chickens and potatoes that lies between those extreme points. If James devotes all his resources to growing potatoes, he can raise 80 pounds of potatoes per year. If he devotes all his resources to raising chickens, he can raise 40 chickens per year. (If he apportions some resources to each, then he can produce any linear combination of chickens and potatoes that lies between those extreme points.)

Opportunity Cost

The opportunity cost…

Bibliography

Bowles, S. (2006). Microeconomics: Behavior, Institutions, and Evolution. Princeton, NJ: Princeton University Press.

Crockett, S., Smith, V., & Wilson, B. (2010). Exchange and Specialization as a Discovery Process. Retrieved June 9, 2011, from  http://ideas.repec.org/p/gms/wpaper/1001.html

The type of configuration that would create such an industry is: having a large number of competitors in the market (with a variety of brands). ("Woolies denies existence of beer price," 2011)

Hypothetically, if both firms go through with this strategy and succeeded (i.e. they drive out the remaining competition in retail), what would be a long run concern for at least one of the two firms? (Note, this is not a question about collusion).

The possibility that their other competitor; may engage in tactics that could undercut their market share. This is problematic, because it means that the other company could: dramatically cut prices or try to create shifts in consumer demand (through substitute products). ("Woolies denies existence of beer price," 2011)

Finally, Fosters is not exactly a small fish itself. Positive PR aside, what is Fosters strategic motivation to boycott their retailers' attempts to reduce retail prices of…

Bibliography

Americans Start to Curb Their Thirst for Gasoline. (2008). WSJ.

The Long-Distance Journey of a Fast-Food Order. (2006). New York Times.

The Saudi Arabia of Lithium. (2008). Forbes.

Somali Pirates Hijack Tanker With Almost 2 Million Barrels of Oil Destined for U.S. (2011). Forbes.

A most relevant example of a monopolistic competitive industry is given by the fast food industry. There is a great supply and demand for fast food products; numerous companies make the products, from international conglomerates such as McDonalds, to small local stores. And everybody consumes one time or another fast food products, from children to adults and senior citizens. Furthermore, the industry provides a wide array of products, including cheeseburgers or hamburgers, fries or beverages, to lately include diet products as well, such as chicken salads. In addition, the prices implemented are rather similar in all sales points. The industry poses no major barriers to entry and there is sufficient information available online and offline about both products as well as those who produce them.

The oligopolistic competitive industry differs from the monopolistic competitive industry in the meaning that there are reduced numbers of producers and sellers. This offers them…

Bibliography

2008, Economics, Financial Dictionary,  http://financial-dictionary.thefreedictionary.com/Fundamentals+of+economics , last accessed on January 30, 2008

Smidman, M., G.C.S.E. Business Studies, Factors of Production, National Grid for Learning Cymru,  http://www.ngfl-cymru.org.uk/vtc/ngfl/bus_studies/gcse_m_smidman/index.htm , last accessed on January 30, 2008

2000-2008, Full Employment, Production Possibilities, AmosWeb Encyclonomic Web,  http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=full+employment,+production+possibilities , last accessed on January 30, 2008

The Process of Product Development..., KC Concepts, http://www.kcconcepts.com/kc_concepts.htm, last accessed on January 30, 2008

Microeconomics

Industry description

The modern day economic climate is extremely dynamic and challenging, revealing a context in which the economic agents are presented with both opportunities as well as challenges. One specific means in which they choose to respond to the challenges and seize the opportunities is represented by them joining forces through mergers and acquisitions. A particular merger of specific interest in 2011 is represented by the merger between Irving Oil Limited and Exxon Mobil.

Irving Oil Limited is the largest refinery in Canada and it focuses on refining and distributing oil and natural gas. It providers a wide array of products and 80 per cent of its output is exported to the United States.

"The company serves customers in eastern Canada and New England, marketing and distributing energy products such as gasoline, diesel, home heating fuel, jet fuel, and lubricants. It also provides natural gas to residential and…

References:

2007 Economic Census, U.S. Census Bureau,  http://factfinder.census.gov/servlet/IBQTable?_bm=y&-ds_name=EC0722SSSZ6  last accessed on July 7, 2011

2011, Irving Oil Limited, Hoovers, http://www.hoovers.com/company/Irving_Oil_Limited/jfssyi-1.html last accessed on July 7, 2011

The industry handbook -- the oil services industry, Investopedia,  http://www.investopedia.com/features/industryhandbook/oil_services.asp#axzz1ROifrxFs  last accessed on July 7, 2011

Exxon Mobil 2010 Annual Report,  http://www.exxonmobil.com/Corporate/Files/news_pubs_sar_2010.pdf  last accessed on July 7, 2011

Microeconomics

Telecom industry is a vast growing sector which deals with the transmission of information to far distances. During the older days, telecommunications was via visual signals such as smoke, flags and telegraphs. Audio communication was transmitted through drumbeats, whistles and horns. Globalization has seen this sector upgrade and today they use electrical devices which include telephones, fiber optic, and the latest internet technology among others. Several companies have come despite the government's intervention in issuing of licenses. The influx is alarming because controlling production of sub-standard goods become hard (Seybold, 2008).

Products offered by telecom

There are many services offered by this industry. They can be broken in to five major categories for clarity. First is the business network and IT services. This includes data centers, mobility services, and network access and voice communications among others. Secondly, there is Business and Technology software. This is an important product because…

References

Lemley, Mark A . (2002). Intellectual Property Rights and Standard-Setting Organizations. California Law Review, Vol. 90 Issue 6, p1889, 92p

Luna, Lynnette. (2001). Dog Days Of Wireless Data. Telephony, Vol. 240 Issue 16, p46, 3p

Seybold, Andrew M. (2008). The Convergence of Wireless, Mobility, And The Internet And Its Relevance To Enterprises. Information Knowledge Systems Management, 2008, Vol. 7 Issue 1/2, p11-23, 13p

West, Robert; Ivie, Michael. (2001). A Hard Year at The Office. Telephony, Vol. 240 Issue 23, p252, 5p

Microeconomics

Elastic demand is where the elasticity is over 1.0, inelastic is where it is less than 1.0. What this means is that elastic demand sees demand change to a greater degree than the price change, while inelastic demand sees demand change to a lesser degree than the price change.

Substitution is a key factor in the demand curve, because the more likely consumers are to substitute, the more likely demand is going to change strongly with a change in price, because consumers just start buying a different product instead. Demand will be elastic when there is high propensity to substitute, or when the product is an unnecessary item.

Income elasticity helps to determine if a good is normal or inferior, because demand for normal goods increases as income increases, while demand for inferior goods should decrease when income increases because consumers substitute superior products.

If a good is a…

Microeconomics
Enron Corporation is an example of one of the largest corporate scandals in the history of the United States. Given a series of corporate mismanagement, Enron is regarded as a shocking example of corporate corruption in the modern business world. The company took 16 years to increase its assets from 10 billion to 65 billion, which was significantly reduced in 24 days (Gibney, 00:00:38-00:00:47). Enron’s corporate scandal has been the subject of numerous studies within the business sector as it offers significant lessons on economics and corporate management. Alex Gibney’s film Enron: The Smartest Guys in the Room provides insights on various topics that are relevant to microeconomics in relation to Enron corporate scandal.
One of the topics discussed in the video relating to microeconomics is market regulation, which is a board term used to refer to government policies that regulate the market. Market regulation is evident in the…

In addition to this, the company must continue to develop new products. This is because consumers' needs and requirements are in a continuous change process and the company's products will have to adapt to the requirements issued by customers.

eference list:

1. History (2008). CSC Brands. etrieved March 19, 2010 from http://careers.campbellsoupcompany.com/History.aspx.

2. Strategies (2008). CSC Brands. etrieved March 19, 2010 from http://careers.campbellsoupcompany.com/Strategies.aspx.

3. Annual eport (2009). CSC Brands. etrieved March 19, 2010 from http://files.shareholder.com/downloads/CPB/871395724x0x320834/0a34b982-31c3-4cb4-bebb-96301d23a4bd/CPB_2009_Annual_eport.pdf.

4. Shea, M.E. & Mathis, M. (2002). Campbell Soup Company. Arcadia Publishing, Charleston. etrieved March 19, 2010 from http://books.google.ro/books?id=wqekiCpw4qcC&printsec=frontcover&dq=campbell+soup+company&source=bl&ots=rwkPu0hPI&sig=ErN5zHrIZhchnuxNP7TanqWBJ8s&hl=ro&ei=qWKjS7__M5L4mgOLxZ3wCQ&sa=X&oi=book_result&ct=result&resnum=5&ved=0CCQQ6AEwBA#v=onepage&q=&f=false.

5. Campbell Soup Company (2010). Wikinvest. etrieved March 19, 2010 from http://www.wikinvest.com/stock/Campbell_Soup_Company_(CPB)#Campbell_Soup_Company_and_the_Competition.

6. Industry Statistics and Projected Growth (2010). Organic Trade Association. etrieved March 19, 2010 from http://www.ota.com/organic/mt/business.html.

Reference list:

1. History (2008). CSC Brands. Retrieved March 19, 2010 from  http://careers.campbellsoupcompany.com/History.aspx .

2. Strategies (2008). CSC Brands. Retrieved March 19, 2010 from  http://careers.campbellsoupcompany.com/Strategies.aspx .

3. Annual Report (2009). CSC Brands. Retrieved March 19, 2010 from http://files.shareholder.com/downloads/CPB/871395724x0x320834/0a34b982-31c3-4cb4-bebb-96301d23a4bd/CPB_2009_Annual_Report.pdf.

4. Shea, M.E. & Mathis, M. (2002). Campbell Soup Company. Arcadia Publishing, Charleston. Retrieved March 19, 2010 from  http://books.google.ro/books?id=wqekiCpw4qcC&printsec=frontcover&dq=campbell+soup+company&source=bl&ots=RrwkPu0hPI&sig=ErN5zHrIZhchnuxNP7TanqWBJ8s&hl=ro&ei=qWKjS7__M5L4mgOLxZ3wCQ&sa=X&oi=book_result&ct=result&resnum=5&ved=0CCQQ6AEwBA#v=onepage&q=&f=false .

Microeconomics

The concept of marginal utility reflects the additional utility that a buyer receives for an additional unit of a good. In this example, Amy is spending an extra dollar if she buys either a bracelet or a soda. If she has an extra dollar, however, she is likely to purchase a soda. This is because the marginal utility of a soda at this point is 40, whereas an extra bracelet has a marginal utility of 30. The rational consumer is going to put their extra financial unit to whatever purchase will maximize utility.

If these utility figures hold, Amy is not maximizing utility. To maximize utility, Amy would only purchase soda since soda has a higher marginal utility than a bracelet.

Amy should consume only sodas if the marginal utility of these goods never changes.

Diminishing marginal utility implies that over time the marginal utility of something will diminish.…

References:

Investopedia. (2013). Law of diminishing marginal utility. Investopedia. Retrieved November 11, 2013 from  http://www.investopedia.com/terms/l/lawofdiminishingutility.asp

Microeconomics

When the Fed sells bonds, this should:

increase the Federal funds rate.

reduce the reserve requirement.

increase the discount rate.

decrease the discount rate.

Suppose excess reserves in the banking system change from $100 to $110. Other things equal, we might expect this change to:

reduce the discount rate.

reduce the Federal funds rate.

raise the reserve requirement d. reduce the prime rate.

If the Fed funds rate is 6% and Fed's target for the Fed funds rate is 4%, then the Fed is most likely to:

reduce the reserve requirement.

sell government bonds.

raise the discount rate.

raise the reserve requirement.

Suppose that investment is not very responsive to interest rates, so that a sizable increase in interest rates has only a minor effect on investment. In this case, contractionary monetary policy would:

a. have no effect on output.

b. reduce output slightly.

c. reduce output significantly.

d.…

Microeconomics study economic behavior individual household firm. In Session Long Project, follow firm choice entire session. You analyze firm makes economic decisions events economy affect firm.

Wal-Mart is the leading retailer within the United States of America, being also one of the largest global companies. On the Fortune 500 list of companies, Wal-Mart is located on the eighth position by its market value.

The selection of this company for further analysis is based on the complexity of the firm, often revealed through conflicting elements. For instance, Wal-Mart is the undisputable leading retailer in the U.S., but has been unable to consolidate a competitive position outside the country. Then, the firm registers impressive profits, but faces fierce criticism from the stakeholders. Then, from a strictly fiscal standpoint, the company follows a sustained growth trend, even in times of economic crisis, when other companies go bankrupt.

All these elements, alongside with others,…

References:

Berman, J. (2013) Wal-Mart's buy American campaign could boost retailer's bottom line. HUffington Post.  http://www.huffingtonpost.com/2013/01/16/walmart-buy-american-campaign-retailer_n_2489519.html  accessed on January 31, 2013

(2010) Low cost producer or economies of scale. Morning Star.  http://news.morningstar.com/classroom2/course.asp?docId=144752&page=3&CN=  accessed on January 31, 2013

(2013). Website of Wal-Mart.  http://www.walmart.com  / accessed on January 31, 2013

Microeconomics

Over the last few years, it is evident that the airline industry in the U.S. has been experiencing long standing as well as novel challenges (The American Antitrust Institute, 2012). These includes the increase in the price of fuel, slowing demand for air travel and pressures to expand globally. Consolidation among various airlines across the country is the most common remedy that most of the airline firms are applying.

In April 2012, the U.S. Airways made an announcement to move and take over the American Airlines. American airline is the fourth largest airline in the United States while U.S. Airways is the fifth (Plane Buzz, 2013). This merger, therefore, will make the U.S. Airways- American the largest in the United States with a combined share of more than 21% (The American Antitrust Institute, 2012).

The merger is worth 11 billion U.S. dollars and will turn America into the largest…

References

Carlton, D.W., Landes, W.M. & Posner, R.A 1980 'Benefits and Costs of airline mergers, The

Bell Journal of Economics, Vol. 11, No. 1, pp. 65-83

Retrieved from  http://www.jstor.org/discover/10.2307/3003401?uid=2134&uid=2&suid=70&uid=4&sid=21101927848577 

Raper, K.C, Love, A.H. & Shumway, R.C 2007, Distinguishing the Source of Market Power, American Journal of Agricultural Economics, Vol. 89, No. 1 (Feb., 2007), pp. 78-90 Retrieved from  http://www.jstor.org/discover/10.2307/4123564?uid=3738336&uid=2&uid=4&sid=21101942783417

Introduction
The small island nation of Petrolo has massive oil reserves that are ranked number five globally in terms of high grade petroleum. On the downside, the global industrial economies have significantly slowed down in petroleum consumption. In fact, the global demand for oil is presently at a 25-year low. The prices of oil are approximately 30 percent of what they were 1 year ago. In the present day, the price of a barrel is $40 whereas Petrolo’s current average cost of pumping oil is $50 per barrel. This is a major concern for Petrolo owing to the losses being incurred for every oil barrel. As a special consultant to the President, my task is to undertake an evaluation of the economic impact of four different options and provide a specific recommendation for what Petrolo as a nation should do.
Option 1: Stop pumping until the market price reaches at…

Macroeconomic and Microeconomics Differences With Examples:

Microeconomics and Macroeconomics are two separate branches of the same field, economics. Together they help us better understand the market dynamics and economic forces that shape them. Macroeconomics deals with the aggregate performance of the economy, the industries and discusses such serious issues as inflation, unemployment and growth. Microeconomics on the study hand is solely concerned with the smaller picture. It is mainly concerned with the performance of units that make the economic whole. It economics were a big picture; microeconomics would be the pieces that complete the picture. Macroeconomics on the other hand looks at the bigger picture. When we discuss the performance of one organization e.g. IBM or Dell, we are talking into consideration the microeconomic viewpoint. But when we talk about the entire computer industry on the whole, this is when macroeconomics comes into the picture.

Basically the entire economic study…

References

Peter Curwen, Peter Else; (1990) Principles of Microeconomics; Unwin Hyman. London.

Perloff J.M (2004) Microeconomics; (3rd Ed) New York City, NY: Pearson Addison Wesley

Production and Market Competition

Microeconomics Module 3 - Case Production, Costs, Profits Cost Profit in assignment, review reference material: Rittenberg Libby T. Tregarthen. (2009). Chapter 8: Production Costs. Sections 1-4 Principles Microeconomics.

Choice of factors of production

A firm's choice of factors of production to change will be determined by likely outcomes of the change. In the short run, a firm can only increase its variable cost. The required consideration in this case is marginal return. The needs to assess whether increasing a variable cost leads to; increasing marginal returns, diminishing marginal returns or negative marginal return. In the long run, a firm's production factors can all be changed. The firm will need to consider the marginal benefits and loses from capital or labor increments.

The considerations that the restaurant manager need to have is the likely change on its cost function. The manager should also be guided by the…

UNNNG HEAD: Microeconomics

Microeconomics

International Trade

All the countries in the world are dependent on each other nowadays. Countries need natural resources that are not present in their homeland or they may also be in need of some finished goods that they don't produce. This interdependency gives a beginning to trade between countries. The notion of international trade has become quite common nowadays as all the countries are participating in it. In addition to fulfilling the requirements of the country, international trade also increases overall efficiency of the production of a good. As some countries have the resources to produce certain goods at a lower cost than other countries. So, that cost efficient country can be given the chance to produce that good for other countries as well so that the overall cost of that product falls. The decision of international trade is undertaken by economies keeping either comparative or…

References

Andersen, L. And Babula, R. (2008). The link between openness and long-run economic growth. Journal of International Commerce and Economics, 1 pp. 1 -- 20.

Lipsey, R. And Harbury, C. (1994). First principles of economics. Oxford [u.a.]: Oxford Univ. Press.

Skipton, C. (2008). Trade Openness, Investment, and Long-Run Economic Growth. [e-book] Tampa: University of Tampa. p. 2. http://chuckskipton.com/uploads/SKIPTON_Openness_and_Investment_Ver_1E.pdf [Accessed: 25 Sep 2013].

Sun, P. And Heshmati, A. (2010). International Trade and its Effects on Economic Growth in China. [e-book] Bonn: Institute for the Study of Labor. pp. 7-11.  http://ftp.iza.org/dp5151.pdf  [Accessed: 25 Sep 2013].

In 1998, a study of supermarkets in the Los Angeles area and Orange County area found that a gallon of milk could cost as much as $3.75, while many neighborhood stores in more affluent neighborhoods charged as little as $1.05 per gallon (Odabashian 1998).

The overall quality of the food sold in low-income areas continues to tend to be of inferior nutritional quality, compared with that of higher-income stores: the food is higher in sugar, and lower in protein and fiber (Lehrer 2010). Low-income areas are less apt to have safe open places to house farmer's markets. Low-income neighborhoods have been called by First Lady Michelle Obama 'food deserts' or places where it is virtually impossible to find healthy food at a reasonable cost. In terms of asymmetrical information as well, lower-income consumers may also not know as much about nutrition as higher-income consumers, and thus exert less demand pressure…

References

Adverse selection definition, 2001, Investopedia. Retrieved October 17, 2010 at  http://www.investopedia.com/terms/a/adverseselection.asp 

Lehrer, Brian. (2007, September 24). Are you being gouged? WNYC.

Retrieved October 17, 2010 at  http://beta.wnyc.org/shows/bl/2007/sep/24/are-you-being-gouged/ 

Lehrer, Brian. (2008, October 12). Food stamp of approval. WNYC.

Macroeconomics and Microeconomics in Organizational Success

XYZ Company is aware that macroeconomics and microeconomics play a general role in its organization's success. The significance of macroeconomics and microeconomics in organizational success is attributable to the fact businesses makes decisions through complex processes. The multifaceted nature of business decision making process is brought by the complexity of consumer decision-making. Moreover, business organizations utilize macroeconomic and microeconomic data to make critical decisions that determine their success or failure. Therefore, it's important for XYZ Company to understand the role of macroeconomics and microeconomics in order for the management to make appropriate decisions that contribute to success. Some of the most important concepts in this process include supply and demand, consumer choice, aggregate supply and aggregate demand, and elasticity.

Overview of Macroeconomics and Microeconomics

Macroeconomics and microeconomics are two components that relate to economic activity and processes. Microeconomics is a concept that relates to…

References

Goodwin et al. (2014). Macroeconomics in context (2nd ed.). New York, NY: Routledge Taylor & Francis Group.

Mankiw, G. (2001). Microeconomics. In Principles of microeconomics (2nd ed, Chapter 4). Retrieved from  http://www.csun.edu/sites/default/files/micro3.pdf 

Sloman, J., Wride, A. and Garratt, D. (2012) Economics (8th ed). Italy: Pearson Education.

Tomlinson, S. (n.d.). Macroeconomic Measurements: Aggregate Output and Income. Retrieved April 13, 2016, from  http://www.cengage.com/economics/tomlinson/transcripts/8472.pdf

Elasticity is a concept in microeconomics that reflects "the degree to which a demand or supply curve varies among products" (Investopedia, 2013). Thus, the degree to which demand or supply of a good changes with a change in the price. This dynamic can be calculated using the following formula:

Elasticity = (% change in quantity / % change in price)

In general, a good is characterized as elastic if the change in quantity is greater than the change in price, in other words if E > 1. If the change in quantity is lesser than the change in price, demand for the good is considered to be inelastic. If the demand changes exactly as the price changes, in order words if E = 1, then the good is said to be perfectly elastic. Perfect elasticity is uncommon, and is observed mostly in theoretical examples (Moffatt, 2013). There is also reverse…

Works Cited:

Investopedia. (2013). Economics basics: Elasticity. Investopedia. Retrieved April 20, 2013 from  http://www.investopedia.com/university/economics/economics4.asp 

Moffatt, M. (2013). Price elasticity of demand. About.com. Retrieved April 20, 2013 from  http://economics.about.com/cs/micfrohelp/a/priceelasticity.htm

Role of Economics

Economics asks what commodities are created, how these commodities are created, as well as for whom they are created. Economics is the study of capital, banking, money, as well as wealth.

Economics is the study of commerce amid nations. It assists clarify why nations sell abroad some goods and bring in others, as well as analyzes the effects of placing economic barriers at national frontiers.

Economic Graphing Models

Values of X are calculated the length of the horizontal axis and are positive, as well as escalating as we shift to the right of the origin2 (middle) and are negative, as well as declining as we shift to the left. Values of Y are calculated the length of the vertical axis and positive and escalating as we shift up from the origin and negative and declining as we shift downward from the starting point. At the center mutually…

Expectations, according to Pigou, could be actual concerns regarding real factors, but could also themselves be a source of fluctuations independent from any other factors (Collard 1983). Pigou also believed that 'psychological causes' had the potential of persisting to the point that the system would be unable to attain equilibrium, and expectations may therefore be formed that address genuine uncertainties (Collard 1983). Forecasting errors, according to Pigou, were deserving of attention, due to their addictive and multiplicative effects (Collard 1983). Pigou believed that eliminating errors resulting from expectations, such as optimism or pessimism, could reduce industrial fluctuations by approximately 50% (Collard 1983). It is noted by Collard (1983) that Pigou's assessment of the effects that expectation has on the economy are more thorough than anything similar put forth by Marshall.

The opposition Pigou had against Keynes later developed into the formulation of the Pigou effect or real balance effect, which…

Reference

Aslanbeigui, Nahid. 1996. The cost controversy: Pigovian economics in disequilibrium. The European Journal of the History of Economic Thought 3(2): 275-95.

Aslanbeigui, Nahid. 1997. Rethinking Pigou's misogyny. Eastern Economic Journal 23(3): 301-313.

Collard, David. 1983. Pigou on expectations and the cycle. The Economic Journal 93: 411-14.

Ledebur, Larry. 1960. The problem of social cost. The American Journal of Economics and Sociology 89: 874-88.

Micro Economics: Chapter Summaries

Microeconomics Chapter Summaries

Summary 'Chapter 7: Monopoly'

Market power refers to the ability of one of more firms in an industry to impact the pricing and supply of products and services for general consumers (Hall & Lieberman, 2010). A firm holding market power experiences a downward slopping demand curve. Monopoly is one of the four major types of market structures (Boyes & Melvin, 2009). It refers to the dominance of only one supplier (or producer) over the entire market (McEachern, 2012). Since a monopolist firm does not have any direct competitor in its industry, it sets prices and supply options itself. Unlike other market structures, monopoly has only one market demand curve, i.e. The demand curve for the monopolist firm and for its industry are same (Shiller, 2009).

Being the only supplier in the industry, this firm can impact the prices of products or services by…

References

Arnold, R.A. (2010). Economics, (9th Ed.). Mason, OH: Cengage Learning.

Besanko, D., Braeutigam, R.R. & Gibbs, M. (2011). Microeconomics, (4th Ed.). Hoboken, N.J: John Wiley.

Boyes, W.J. & Melvin, M. (2009). Economics, (8th Ed.). Eagan, MN: South-Western.

Hall, R.E. & Lieberman, M. (2010). Economics: Principles & Applications, (5th Ed.). Mason, OH: Cengage Learning.

Economics Questions; Production Possibility Curves and Nonresidential Investment

Using the data from Heritage Org, the countries with ranked in 1st, 51st and 101st were identified and information provided was used complete the following table. For the country ranked in 101st place there was no data ranked at 101st for the unemployment rate given, however, if a figure is required, trading economics provide the last available data which places the unemployment level at 1% which was measures in 2010 and is assumed to remain correct (Trading Economics, 2013).

anked #1

anked #51

anked #101

Country Name

Hong Kong

Israel

Benin

GDP

$351.1 billion

$235.2 billion

$14.7 billion

Unemployment

n/a

Government Spending as a percent of GDP

45%

Growth rate of GDP

5%

Part B

It is possible to use the data to drawn draw some production possibility curves. A production possibility curve, which is also referred to as a production possibility…

References

Bureau of Economic Affairs, (BEA), (2013), National Income and Product Accounts

Gross Domestic Product, 2nd quarter 2013 (third estimate); Corporate Profits, 2nd quarter 2013 [online]  http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm  accessed 18th Oct 2013

Heritiage.org, (2013), [online] at  http://www.heritage.org/Index  / accessed 4th October 2013

Nellis JG, Parker D, (2000), The Essence of the Economy, London, Prentice Hall

Micro Economics Shut Down Decision

The October, 2000 announcement that Nortel Networks would enter the customer relationship management (CRM) application market by acquiring Clarify for more than $2 billion in stock stunned the majority of people. The question on everyone's mind was, "How can a hardware giant succeed with a software business?" The answer, coming only 18 months after the acquisition closed, was that it couldn't.

Nortel purchased Clarify in its bid to become an eusiness provider by extending its hardware Internet foundation product lines which include optical, local area and wireless Internet products by adding applications to manage eusiness relationships that the Internet facilitates. Three quarters of Nortel's customers were large communications carriers such as MCI and AT&T, newer carriers like Qwest, or wireless carriers such as Sprint PCS. The rest were corporations. Nortel made the bet that company's spending a billion dollars on its hardware infrastructure would also…

Bibliography

CRM Software Growth Remains Stalled," July 24, 2002, Gartner Group

Menconi, Peggy, "Clarify is Alive and Well at Nortel Networks," August 31, 2000, AMR

Research

Nortel Networks Announces Expected Closing Date for Sale of Clarify Assets to Amdocs,"

tells that Volkswagen has been found, and admitted to, cheating on emissions tests for its vehicles. That cheating had shown that diesel was cleaner than unleaded, which in turn resulted in favorable tax treatment for diesel. This in turn increased the demand for diesel products, as they were cost-competitive versus gasoline cars. With the admission that Volkswagen falsified these tests, leading to the conclusion that unleaded gasoline is the cleaner of the two fuels, there are significant implications including the possible reversal of tax policy in the EU away from favoring diesel as a fuel source for automobiles.

The market for fuels is typically subject to various regulations, and emissions are one of the regulations that govern this market. Tax policy is based on multiple factors but in Europe in particular tax policy is based on the desire to control emissions. Tax policy moves the fuel market out of equilibrium,…

References

Kool, T. (2015). The Volkswagen scandal is bad news for diesel. Time Magazine. Retrieved September 29, 2015 from  http://time.com/4048247/volkswagen-scandal-bad-diesel/

Microeconomics Analysis

Cindy is making a consideration to investing in a new business consists of the installation of solar panels. In the current periods, this has been perceived as a profit making venture. This is for the reason that the world continues to shift more and more into renewable sources of energy of which solar power energy is one of the leading ones. Another reason is that the government has made incentives to the industry by giving out subsidies to the suppliers in this market so as to increase the number of solar panels being produced. Bearing this in mind, Cindy is necessitated to take two decisions. First of all, there is a need to review the probable or likely profit or loss that can come about in this business in the forthcoming by making an allowance for the impending prospects for this line of business. Cindy needs to take…

References

Baker, E., Fowlie, M., Lemoine, D., Reynolds, S. (2013). The Economics of Solar Electricity. Energy Institute at Haas.

Borenstein, S. (2008). The market value and cost of solar photovoltaic electricity production. Center for the Study of Energy Markets Working Paper 176. University of California Energy Institute.

Bosetti, V., Catenacci, M., Fiorese, G., Verdolini, E. (2012). The future prospect of PV and CSP solar technologies: An expert elicitation survey. Energy Policy, 49:308 -- 317.

Brown, P.S. (2006). Making Sense of High Oil Prices: A Conversation with Stephen P.A. Brown.FRB Dallas Southern Economy, Issue 4, July/August, pp. 8-9.