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In the economic discipline the market mechanism provides the underpinning of "the basic rules of behavior that no participant in a market system can afford to disregard entirely" (Heilbroner, R. 1995). Adam Smith in describing the laws of the market in The Wealth of Nations did not specifically articulate the concept of perfect competition, but did rely on competition as one of the fundamental regulators of the marketplace for goods and services. The abstraction of the perfect competition model did not elude another giant of economic thought, Karl Marx who in Das Kapital utilizes a perfect competition model to portent the ruin of capitalism. The "world of perfect capitalism: no monopolies, no unions, no special advantages for anyone…for if proven that the best of all possible capitalisms is nonetheless headed for disaster, it is certainly easier to demonstrate that real capitalism will follow the same path, only quicker"…
Instead, IM began to falter after a series of product failures. As a result, many companies gained market share against IM with some even over taking it; an efficient market took care of the issue.
Yet, another example of why government should not interfere with market structures is the airline industry. After 1978, the airline industry was quickly transformed into an oligopoly market structure where only a half dozen or so companies controlled 90% of U.S. travel. Airlines such as American mostly enjoyed high profits until 2000, taking advantage of limited competition and their ability to price discriminate to increase profit margins for those customers who were willing and able to pay higher prices. eginning in 2000, everything came crashing down for the airlines (pardon the pun). American airlines lost money from 2000 until it finally reaped a small net profit in 2005. The oligopoly market structure that once fueled…
America's Airlines, Flying on Empty (2005, September 6). The Economist. 6 Sept. 2005.
Conigliaro, A., Elman, J., Schreiber, J. And Small, T. "The Danger of Corporate Monopolies." http://cse.stanford.edu/class/cs201/Projects/corporate-monopolies/index.html
Conigliaro, A., Elman, J., Schreiber, J. And Small, T. "The Danger of Corporate Monopolies." http://cse.stanford.edu/class/cs201/Projects/corporate-monopolies/index.html
Monopolistic and Oligopolistic Competitions
Compaison between monopolistic competition and oligopolistic competition
Monopolistic competition is a maket stuctue whee lage numbe of fims sells diffeentiated poducts that ae highly substitutes to one anothe but not pefect substitutes. Thee is a fee enty and exist in the monopolistic competition, and the fims demand cuves ae downwad sloping. Examples of a monopolistic competition ae the fims poducing clothing, toothpaste, estauants etc. On the othe hand, oligopolistic competition is a maket stuctue whee thee ae few fims competing among one anothe. Thee is a baie of enty because of the economic of scale, patent, and the technology involved in setting up the fim and the pesence of few fims give the fims advantage to make excess pofits. Examples of oligopolistic competitive maket stuctues ae automobiles, steel, aluminium, petochemicals, and electical equipments. While thee ae few fims in the oligopolistic maket, thee ae…
references and Income Efects in Monopolistic Competition Models. University of Munich.
A Monopolistically Competitive
Firm in the Short and Long Run
eber and Spencer took this further and say the need for government control over some aspects of society, but not those that removed decisions and rights from the individual. Thus, as adults and citizens the government should offer structure and guidance in a manner that is consistent with the social goals of the Enlightenment; namely allowing actualization without overly reducing individual decisions and actualization.
Aristotle. Nichomaecean Ethics. New York: Nuvision Publications, 2007. Print.
Barry, B. hy Social Justice Matters. Malden, MA: Polity Press, 2005. Print.
Bayer, R., ed. Public Health Ethics. New York: Oxford University Press, 2007. Print.
Constitutional Rights Foundation. "Plato and Aristotle on Tyranny and the Rule of Law." Fall 2010. crf-usa.org. eb. April 2013. .
Gay, P. The Enlightenment - the Science of Freedom. New York: .. Norton, 1996.
Porter, R. The Enlightenment. New York: Palgrave-MacMillan, 2001.
Sharma, C. "Beyond Gaps and Imbalances." Public Administration…
Aristotle. Nichomaecean Ethics. New York: Nuvision Publications, 2007. Print.
Barry, B. Why Social Justice Matters. Malden, MA: Polity Press, 2005. Print.
Bayer, R., ed. Public Health Ethics. New York: Oxford University Press, 2007. Print.
Constitutional Rights Foundation. "Plato and Aristotle on Tyranny and the Rule of Law." Fall 2010. crf-usa.org. Web. April 2013. .
America, having the perfect schools has long been thought to be the panacea of all our nation's social troubles. If only we could teach our children to master America's social values while still in school, we could produce a population of perfect engineers for our future society. Injustice, racism, poverty, and all the other social illnesses of America would be cured by this new generation of progressive thinkers. The quality of our nation's education system needs to be improved, and President Bush's education reform plan will do just that.
It is obvious that the so-called "progressive" educational approach has failed. The academic knowledge of our children has fallen in comparison to other industrial nations. In an attempt to stem our nation's slide in educational rankings, government expenditures for education have risen dramatically. Every year, billions of taxpayer dollars are poured into the U.S. education system. The government seems to believe…
Digest of Education Statistics, 1991." National Center for Education Statistics. http://nces.ed.gov//pubs2002/digest2001/ch6.asp .
Economic & Social Data Ranking. http://web.hhs.se/personal/suzuki/o-English/UnitedStates.html.
Frase, Larry E, and William Streshly. Top Ten Myths in Education. Lanham, MD: Scarecrow, 2000.
Hirsch, E.D. The Schools We Need and Why We Don't Have Them. New York: Doubleday, 1996
Consider the fact that the Iroquois are said not to have had a strong word for the singular "I," and that they subsequently developed what was arguably the longest lasting communal representative democracy the world has ever known. The Inuit, whose culture revolves around the arctic world, have dozens of words for snow - this sort of technical knowledge allows quick and accurate transmission of conditions and training in survival.
In Western terms, one remembers that Jesus Christ was said to be "The Word," yet in the original Greek this indicates not only a spoken word but also the Logos - the root term for intellectual reason, for Meaning within context (be that the context of a sentence, a life, a history, or a universe); logos was rational order. The difference between saying that a religious figure is the Word (which at its most profound seem to indicate a kind…
Atkins, J.D.C. (1887). Report of the commissioner of Indian affairs. House Exec. Doc. No. 1, Pt. 5, 50th Cong., 1st Sess. Washington, DC: U.S. Government Printing Office.
Boston Language Institute. "TEFL FAQ http://teflcertificate.com/faq.html
Ethnologue. "English http://www.ethnologue.com/show_language.asp?code=eng
Macha, Freddy. "Tanzanian Independence Day Abroad. http://www.unclesamofafrica.com/TanzaniaGuardian.htm
Goals Athletes Set in Training and Competition
Perhaps the biggest mistake a researcher can make it to assume that if research has been done, that means the research is good research. In actuality, there is a significant amount of bad research available and those who rely upon it can easily draw bad conclusions. While there are an infinite number of ways that research can be bad, probably the most significant risk in bad research is research that detects a relationship (correlation) between two or more different variables and, from that relationship, seeks to suggest that there is causation between two or more of those variables. This can be due to an improper conclusion, but it can also be due to faulty research design that has failed to account for all of the other variables that could impact the results.
Defining Good esearch
It can be difficult to define good research…
Denscombe, M. (2007). The good research guide for small-scale social research projects, 3rd
Ed. Poland: Open University Press.
Munroe-Chandler, K., Hall, C., Weinberg, R.S. (2004). A qualitative analysis of the types of goals athletes set in training and competition. Journal of Sport Behavior, 27(1), 58-74.
Shuttleworth, M. (2008). Validity and reliability. Retrieved March 9, 2012 from Experiment
market structures and the pricing strategies which are specifically related to each of them. The introductory section of the paper gives an overview of the four major types of market structures and explains the main features which draw distinguishing lines between them. These major types of market structures are perfect competition, monopolistic competition, monopoly, and oligopoly. The second section discusses the pricing strategies which are used by competitors in each of these market structures in order to compete with the other competitors or operate in a profitable and competitive fashion. A case study has also been included which gives a real life example of the market structure and pricing strategies of a specific company. The paper concludes by giving summary and key findings from the whole discussion.
Introduction to Market Structures
Market structure refers to the number of competitors operating in a particular industry and the level or intensity of…
Boyes, W.J., & Melvin, M. (2012). Economics, 9th Edition. Mason, Ohio: South-Western Cengage Learning
Gitman, L.J. & McDaniel, C.D. (2009). The Future of Business: the Essentials, 4th Edition. Mason, OH: South-Western Cengage Learning
Hall, R.E., & Lieberman, M. (2010). Micro Economics: Principles and Applications, 5th Edition. Mason, OH: South-Western, Cengage Learning
Mankiw, N.G. (2011). Principles of Economics, 6th Edition. Mason, Ohio: Thomson South-Western
The composite raw materials of dry cell batteries and the ingredients in vitamins are equally available to any entity wishing to enter those markets. Moreover, there is little to distinguish the products of different manufacturers in those areas besides packaging and branding because the products themselves are essentially identical.
Many consumer services such as hair dressing and auto repairs also represent perfect competition scenarios because the barriers to entering the market are not very high and once in business, the prices commanded by individual proprietors are substantially dictated by prevailing market prices and the traditional dynamic of supply and demand.
Applying Saint Leo University Core Values to Economic Markets
In principle, the core values of Saint Leo University (and of Christianity, more generally) require us to be morally and socially responsible members of the human community. Furthermore, those core values also require us to serve our communities, to contribute to…
Intra-Industry International Trade
Standard trade theory and its deviations
The classical theory of international trade can be traced back to the founding father of capitalism Adam Smith: Smith's 1776 Wealth of Nations theorized that free trade would be beneficial to all nations. Smith stated that much like merchants, nations should specialize in the particular goods and services which they could produce most efficiently and trade with other nations who could produce alternate goods and services equally efficiently. Thus free trade resulted in advantages for both trading parties. Smith's theory was later fleshed out by David icardo in his Principles of Economics. iccardo stated that free trade could optimize efficiency for every country on a global level by reducing the inefficiencies generated by the excess resources involved in producing the goods and services the nation was not suited to produce (Sen 2010: 2).
This common wisdom remained relatively consistent…
Agglomeration economies. (2013). Economics Help. Retrieved from:
Carlton & Perloff. (2010). Strategic trade. Modern Industrial Organization (4th ed). Pearson.
Retrieved from: http://wps.aw.com/aw_carltonper_modernio_4/21/5566/1425036.cw/content/index.html
Economics for Business
The company that I am studying is Apple. The company is a designer and marketer of consumer electronics, specifically computers, smartphones, tablets, mp3 players and software. The company has experienced a strong run of great performance in recent years, but it has not always been that way for Apple. The company struggled considerably, especially in the 1990s, before breaking loose. The key thing about Apple is that it has always sought to differentiate itself. Over the course of the past ten years, we have seen most of Apple's former competitors in the personal computer space leave the industry. The reason is that the computer industry is moving towards the strategic hell of perfect competition.
The term strategic hell reflects the condition of perfect competition. In the real world outside of economics textbooks, few markets can be truly understood to be perfectly competitive. Perhaps a vegetable…
Lunden, I. (2013). Android at 82% share, Samsung a flat leader. TechCrunch.. Retrieved November 25, 2013 from http://techcrunch.com/2013/11/14/gartner-456m-phones-sold-in-q3-55-smartphone-android-at-82-share-samsung-a-flat-leader/
Mourdoukoutas, P. (2013). Apple's most important branding lessons for marketers. Forbes Retrieved November 21, 2013 from http://www.forbes.com/sites/panosmourdoukoutas/2013/10/05/apples-most-important-branding-lesson-for-marketers/
MSN Moneycentral. (2013). Apple Inc. MSN Moneycentral. Retrieved November 22, 2013 from http://investing.money.msn.com/investments/stock-income-statement/?symbol=AAPL
Riley, G. (2013). Strategic choice: Apple: Differentiation v scale. Tutor2U.net. Retrieved November 21, 2013 from http://www.tutor2u.net/blog/index.php/business-studies/comments/strategic-choice-apple-differentiation-v-scale
Five forces' analysis (Porter 1980)
Five Forces Analysis of Competitive Structure
Michael Porters Five Forces Analysis of Competitive Structure is a paradigm for competitive position, which states that overall a company's profitability may be determined as a measure of the industry it is competing in and its strategic position within that industry (Strategy4u, 2004). According to the model some industries by nature will have a higher profit potential than others, primarily because they have a stronger competitive position and are placed within a more profitable industry.
Porter's Model also suggests that profitability is assessed via several factors, including the following: buyers/customers power, supplier's power, and rivalry among competitors, threat of new entrants into the market, and the threat of substitute products (Strategy4u, 2004). The company or industry will have a greater profit potential the less influential each of these items are. For example, if a company sells a product for…
Business Insight. "Michael Porter's Five Forces Model." 2003. Available: http://www.businessplansoftware.org/porter.asp
Devine, Donald. "Pols Dare Not Challenge Giveaway to Media Gods." Insight on the News, Vol. 13, May 1997. p. 1
Economics A-Z." Economist.com. Retrieved March 27, 2004. Available: http://www.economist.com/research/Economics/alphabetic.cfm?TERM=PROFIT
Fellner, W. "Competition among the Few: Oligopoly and Similar Market Structures." New York: A.A. Knopf, 1949, pp. 55-59
Economics usiness' (Micro Economics) required write assignment response question: Compare contrast ' forces' analysis competitive structure S-C-P (Structure Conduct Performance) models perfect competition, monopoly oligopoly.
Five Forces vs. SCP model
The SCP model of market development suggests that there are three basic market structures which exist, that of perfect competition, monopoly and oligopoly. In a model of perfect competition, consumers are extremely powerful. "Perfect competition is characterized by many buyers and sellers, many products that are similar in nature and, as a result, many substitutes. Perfect competition means there are few, if any, barriers to entry for new companies, and prices are determined by supply and demand" (Monopolies, oligopolies, and perfect competition, 2012, Investopedia). It is very easy for new firms to enter the marketplace, and very easy for consumers to shift their purchasing power to other entities that offer them a better deal. There is little advantage to operating…
Monopolies, oligopolies, and perfect competition. 2012. Investopedia. Accessed:
[3 Sept 2012]
Porter's five forces. 2012. Tutor2U. Accessed:
Marginal analysis is "an examination of the additional benefits of an activity compared to the additional costs of that activity (Investopedia, 2012). The idea is that for the toothpaste division, the company would only produce more if the profits that it gains from producing more outweigh the costs associated with that increased production.
The number of cases needed to maximize profits is calculated as follows:
So 7000 cases is the point of profit maximization.
Based on the assumption that the toothpaste market is in a state of perfect competition, if CPI raised prices, nobody would buy our toothpaste. Demand would fall because our competitor's toothpaste would be cheaper and would be of equivalent quality. In perfection competition, companies do not have any leverage (Heakal, 2012).
If the market price of toothpaste rose to $54 per case, then the point at which profit is maximized would change. The…
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.
Bennett, D., Hagiwara, Y., & Kitamura, M. (2011, September 5). Toyota Bets on Japan. Bloomberg Businessweek, pp. 70-73,. Retrieved from http://web.ebscohost.com/ehost/detail?sid=fbe40510-c02e-4a4c-afc8-b21dbb1445c3%40sessionmgr11&vid=1&hid=10&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=60477158
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 http://www.altenergystocks.com/archives/2011/11/bernstein_and_ricardo_report_cheap_will_beat_cool_in_vehicle_electrification.html
Lipsey, R.G., & Chrystal, K.A. (2007). Economics. Oxford: Oxford University Press. Retrieved from http://books.google.com.pk/books?id=HgXWV8JMC10C&printsec=frontcover&dq=Economics+lipsey&hl=en&sa=X&ei=qPIuT9DdPM7wrQeQ_LzYDA&redir_esc=y#v=onepage&q=Economics%20lipsey&f=false
intra-industry international trade within the standard international trade classification SITC6, which represents manufactured foods classified chiefly by material. The scope of this paper is limited to processed foods, and includes analytical frameworks from the gravity model, and classic approaches to product differentiation, product commoditization, pricing, and market structure.
eferences to market structures in the literature typically oversimplify the dynamics influencing the development of market types -- perfect competition, monopolistic competition, oligopoly, and monopoly -- and this tendency is exacerbated when the focus is on intra-industry trade. Further, the distinctions become considerably more obfuscated when companies that are in the same trade do business in both domestic and international markets. A global manufacturing strategy is the goal of most multinational companies, and rationalizing manufacturing strategies is an objective for nations, as well (Lee, 1984). For instance, assume that a country has the industrial infrastructure to produce canned beverages, but there are…
Anderson, J.E. (2011). The gravity model. Annual Review of Economics, 3. Boston College.
Arribas, I., Perez, F., and Tortosa-Ausina, E. (2009). Measuring globalization of international trade: Theory and evidence. World Development, 37(1), 127-145. doi: 10.1016/j.worlddev.2008.03.009
Baier, S.I., and Bergstrand, J.H., (2009). Bonus vetus OLS: A simple method for approximating international trade-cost effects using the gravity equation. Journal of International Economics. Retrieved http://linkinghub.elsevier.com/retrieve/pii/S0022199608001062
Berstrand, J.H. (1985). The gravity equation in international trade: Some micro-economics foundations and empirical evidence. Review of Economics and Statistics, 67(3), 474-481. Doi: 10.2307.1925976
Production possibility curves are representation of the amount of two different goods that can be obtained by shifting resources from the production of one, to the production of the other. In addition, the graph represents maximum specified production level of one commodity that results given the production level of the other (Samuelson, 1962). The curve is used to describe consumers' choice between two different goods.
The curves represent a wide range of economic factors; scarcity, opportunity costs, and choice. According to the curve, scarcity is the fundamental economic problems all societies face; opportunity cost being the cost of anything used in the production in terms of what has to be given; these costs could be financial, but they could include individuals' time and other intangibles. Besides, the possibility curve shows two products and the consumer has the choice to choose the best one between them.
An individual earning…
Camerer, C. (2003). Behavioral Game Theory: Experiments in Strategic Interaction. Russell Sage Foundation.
Government of Alberta. (2012, July 25). Oil and Gas. Retrieved October 19, 2012, from www.albertacanada.com: http://www.albertacanada.com/business/industries/oil-and-gas.aspx
Lemieux, P. (2001, March 19). The Diminishing Returns to Tobacco Legislation. The Laissez Faire City Times.
McGraw-Hill Higher Education. (2003 ). Tutorial. Retrieved October 19, 2012, from www.highered.mcgraw-hill.com: http://highered.mcgraw-hill.com/sites/0070901651/student_view0/chapter10/tutorial.html
A price discrimination strategy is one where different customers are charged different amounts. The price charged for my shop's submarine sandwiches will therefore be different for locals than for visitors. There are a number of ways to achieve this. In the context of a sandwich shop, the prices are going to be listed publicly on the menu, so it is impossible to openly discriminate with respect to prices. One technique that can be utilized to lower the average cost for each sub-for locals is to offer a loyalty card. The local would then receive either a discount or a free sub-after making enough purchases. This would deliver a lower price to locals in the long run. Alternately, a loyalty club can allow the locals to receive discounts if they are members of the club. A certain amount of annual sales would be required for club membership, or even a…
Investopedia. (2010). Perfect competition. Investopedia. Retrieved October 16, 2010 from http://www.investopedia.com/terms/p/perfectcompetition.asp
ACC. (2010). U.S. antitrust agencies issue revised merger guidelines. Association of Corporate Counsel. Retrieved October 16, 2010 from http://www.lexology.com/library/detail.aspx?g=cf23ba87-0ed6-4db5-9739-d7cf74bcdf8f
Economics of Alchohol Abuse
Alcohol for consumption is not a necessary food item, but for some has become a standard part of adult culture. Increasing the level of alcohol consumption, however, moves from an economic paradigm to a social issue due to the ancillary health and behavioral effects from alcohol abuse. In turn, this becomes part of economics in that it requires fiscal resources to treat societal issues caused by alcoholism: domestic abuse, crime, traffic or driving issues, etc. The economic effects of alcohol are undebatable, and are pervasive in the overt and covert areas of the economy (short- and long-term) (Fogarty, 2006).
In the economic sphere of political and social policy, alcohol, like tobacco and gambling, are considered a "sin" tax that is ostensibly designed to reduce transactions for issues society considers dangerous or undesirable. However, when it comes to alcohol, many see that this type of a sumptuary…
Ensuring Solutions to Alcohol Problems. (2011). Ensuring Solutions. Retrieved from: http://www.ensuringsolutions.org/
Profit-Maximization in the Long Run. (2010). Welker'sWikinomics. Retrieved from: http://welkerswikinomics.wetpaint.com/page/Profit-Maximization+in+the+Long-run
Tobacco, Alcohol Industries Reject New Sin Tax Bill. (February 22, 2012). ABS/CBN News. Com. Retrieved from: http://www.abs-cbnnews.com/business/02/22/12/tobacco-alcohol-industries-reject-new-sin-tax-bill
Avorn, J. (2004). Powerful Medicines: The Benefits, Risks, and Costs of Prescription Drugs. New York: Random House.
Supply and demand are two fundamental aspects of economics. It is the combination of these elements that makes up a market. Therefore, it is paramount to understand both concepts in order to appreciate the mechanisms of economic theory.
Supply is the ability and willingness of merchants to provide commodities for sale. Quantity supplied is a definite amount of goods at established prices. A supply curve depicts the connections between the price and quantity supplied of a good or service within a certain time period.
In order to understand supply curves, one must also comprehend the law of supply, production costs, marginal costs, and profit maximization. The law of supply states that as the price of an item rises the quantity supplied similarly increases. As the price falls, so too does the quantity supplied. In other words, there is a positive relationship between price and quantity supplied.
Another major factor in…
They will only respond to outcomes that they feel directly. Thus, the government's actions are not having the desired impact on consumer behavior.
A disagree with the government's approach. The interest rate cuts are particularly worrisome. The massive cuts in the early 00s helped to spur the crisis because they had a profound impact on the money supply and helped to restore consumer confidence. Cuts of the same magnitude have been implemented now, but without the same results that were seen in the early to mid 00s. orse yet, if those results were seen, we could find ourselves in a repeat of the housing bubble. If something spurs a surge in consumer confidence, for example a strong holiday retail season, this could help convince banks to loosen their credit. ith the low rates, the market would once again be flooded with capital. This would spur a resurgence in the housing…
Boeri, Tito & Guiso, Luigi. (2007) Subprime Crisis: Greenspan's Legacy. Vox. Retrieved November 19, 2008 at http://www.voxeu.org/index.php?q=node/488#fn2
Brown, Jeff (2008) Subprime Crisis: A Bouquet of Opportunity Masked a Reek of Risk. Knowledge @ Wharton. Retrieved November 19, 2008 at http://knowledge.wharton.upenn.edu/article.cfm?articleid=1995
Bagley, Nicholas. (2008). The Federal Role in the Subprime Mortgage Mess. Sacramento Bee. Retrieved November 19, 2008 at http://www.treasurer.ca.gov/beyondthehorizon/20080128.pdf
Thoma, Mark. (2008). The Fed's View of the Sub-Prime Mortgage Market. Economist's View. Retrieved November 19, 2008 at http://economistsview.typepad.com/economistsview/2007/03/the_feds_view_o.html
The effect of all of this is to drive away those who actually worked the land because they loved it, replacing them with hired hands running machinery, neither of which is likely to be kind to the land.
Perhaps the most familiar form of business except for perfect competition, monopoly situations result when there are many potential buyers for a product or service, but only one seller.
In the Grapes of rath, a monopoly situation is created as the banks decide to remove tenant farmers, preferring to sell the land to a single large conglomerate of landowners or even a single corporation.
Steinbeck could hardly have painted a harsher picture of this monopoly-in-progress, with scenes of huge bulldozers razing all evidence of the tenant farmers from the land. However, he also notes that the 'monopolization' of the Great Plains was seemingly an event bigger even than those landowners who…
Cassuto, David. "Turning Wine into Water: Water as Privileged Signifier in 'The Grapes of Wrath'.." Papers on Language & Literature 29.1 (1993): 67+. Questia. 19 July 2005 http://www.questia.com/ .
Steinbeck, John. The Grapes of Wrath. New York: Viking Penguin, 1939.
Generic drug makers therefore are competing in the market according to the skills in which they specialize. They specialize in efficient production and distribution of drugs, rather than in developing new drugs.
A generic drug maker can go out of business simply on the basis of not executing their business plan well. However, generic producers have built their business plans around the FDA's current set of regulations. A change in those regulations could have an adverse effect on generic drug makers. For example, if the monopoly protections that come from a new drug approval are extended out further, that would reduce the ability of the generic producer to make money on any given drug. This is especially the case of the drug in question becomes obsolete during the time period prior to the generic having access to that market. In such a situation, the generic maker would not have access…
Vargas, L. (2001). "Maquiladoras: Impact on Texas Border Cities," in the Border Economy, Federal Reserve Bank of Dallas. Retrieved on December 2, 2011 from: http://www.dallasfed.org/research/border/tbe_vargas.html
Investopedia. (2012). Net present value. Investopedia. Retrieved May 18, 2012 from http://www.investopedia.com/terms/n/npv.asp
Investopedia. (2012). Perfect competition. Investopedia. Retrieved May 18, 2012 from http://www.investopedia.com/university/economics/economics6.asp #axzz1vG92KPwm
Whitehouse, J. (2011). How to calculate economic profit with the marginal decision rule. eHow. Retrieved May 18, 2012 from http://www.ehow.com/how_8696173_calculate-profit-marginal-decision-rule.html
Occasionally, when examining marketplace considerations, an organization might establish strategies for consolidation. Name the 4 ways to accomplish this objective, and give an example.
Strategies for consolidation, in basic terms, seek to enhance a firm's ability to manage that which it is undertaking at a specified time. In that regard, therefore, such strategies come in handy in protecting a firm's status in the marketplace, via non-growth means. The most common strategies for consolidation, according to Berkowitz (2010) include divestment, pruning, retrenchment, and harvesting.
Divestment in the words of Berkowitz (2010, p. 60) has got to do with "selling off a business or product line." As the author further points out, this particular strategy is in most cases utilized "when an organization believes that there is a weak fit between its major core business and a particular product line" (Berkowitz, 2010, p. 60). For instance, a firm that attributes…
Berkowitz, E.N. (2010). Essentials of Health Care Marketing (3rd ed.). New York: Jones & Bartlett Publishing.
Goodwin, N., Harris, J., Nelson, J., Roach, B. And Torras M. (2014). Principles of Economics in Context. New York: M.E. Sharpe.
Bookselling Industry in Japan
Individual Integrative Case Study: The Japanese Bookselling Industry
This paper focuses on the Japanese Bookselling industry. Under this, it analyzes two successful firms, Bookoff and Amazon. These firms overcome the implications of Saihan Systems using unique ways, making them to achieve a competitive advantage over other firms.
There is a reduction in the number of firms in the bookseller retailing industry in Japan. This is because of many reasons. First, the Saihan System, which makes it mandatory for publishers to fix prices of books before selling them to the retailers. The effect of this rule is that large retailers no longer push other firms out of the industry due to price.
Despite the imposition of Saihan System on the bookselling industry in Japan, both Bookoff and amazon have overcome its implications. The two are doing so through use of unique methods making them have competitive advantage…
Amazon japan may sell other firms' goods. (2006, Jul 27). Wall Street Journal. Retrieved from http://search.proquest.com/docview/399005127?accountid=35812
By Yumiko Ono and, Masayoshi Kanabayashi. (2000, Jun 22). Focus on japan: A special background report on trends in industry and finance. Wall Street Journal. Retrieved from http://search.proquest.com/docview/398738784?accountid=35812
IPO profile: Bookoff corp. (2004, Mar 05). Jiji Press English News Service. Retrieved from http://search.proquest.com/docview/448498097?accountid=35812
McClure, S. (2001). Japanese labels retain right to set prices. Billboard, 113(14), 3-3. Retrieved from http://search.proquest.com/docview/227152099?accountid=35812
Strategic Financial Management
Barriers to entry are situations that make it difficult for rivals to penetrate in market. These are the reasons, which inhibit the entry of business to an industry. Theoretically, if an industry is showing a rising trend of profits, it indicates that demand for it products are well and the goods can be sold at a cost generating profits. Thus there will be an inducement for firms to enter this industry to have share of these profits. With the arrival of new firms in the industry, supply increases resulting in a fall of prices. Hence, competitive environment has been created with demand meeting the requirement and prices falling. Barriers to entry are the main reason for market control and the resulting inefficiencies that creates. Generally, monopoly, oligopoly, monopsony, and oligopsony are dependent on the market control to varied barriers to entry. In contrast, perfect competition, monopolistic competition,…
Bain, J. (1956) "Barriers to New Competition" Harvard University Press: Cambridge, Mass.
Demsetz, Harold (1982) "Barriers to Entry" The American Economic Review. Volume. 72; No. 1, pp: 47-57
Geroski, Paul. Schwalbach, Joachim. (1989) Luxembourg Barriers to entry and intensity of competition in European Markets. Washington, DC: Office for Official Publications of the European Communities; European Community Information Service.
Gilbert, R. And X. Vives. (1986) "Entry Deterrence and the Free Rider Problem" Review of Economic Studies Volume: 53; pp.71-83.
Infrastructure is the foundation of a healthy economy and an equitable society. The World Bank's Policy Research Report on Reforming Infrastructure: Privatization, Regulation, and Competition evaluates infrastructure issues in several major sectors: telecommunications, electricity, transportation, and water. Within these infrastructural areas, the report addresses topics related to privatization, state ownership, competition, and regulation. Finally, the report incorporates social and economic concerns into proposed policy reforms. Both privatization and state control of infrastructures present problems that can be addressed with wise and research-based reform.
Chapter One of the World Bank Policy Research Report on Reforming Infrastructure focuses on network utilities. Not limited to telecommunications alone, a networking infrastructure entails all that is necessary for businesses to compete in the global marketplace. Economic development depends on the creation and maintenance of an effective, reliable, and accessible network infrastructure.
Network infrastructure is a "natural target for government intervention" and yet is "difficult to…
In this instance, they are likely to generate competition at both levels. In terms of national territory, their threats will materialize in that they will offer lower prices in comparison to traditional retailers. This would be explained by the fact that online retailers register lower costs with the personnel, the training of the sales staff, or the rent of a facility. The competition is likely to be more intense at national level between small retailers as at this stage, they only afford to offer free shipping to the nearby locations. They would request their customers to pay the value of shipping to further locations, increasing therefore the retail price and losing their competitive edge.
Finally, the characteristic of being a price taker should also be looked at. In the case of small online retailer, they are price takes as they have a reduced capability to influence the market. Their customers…
Baye, M., 2008, Market Definition and Unilateral Competitive Effects in Online Retail Markets, Journal of Competition Law and Economics, Vol. 4 Issue
Ellison, G., Some Economics of Internet Retail, National Council of Applied Economic Research, Retrieved at http://www.ncaer.org/downloads/lectures/popuppages/PressReleases/popuppages/PressReleases/7thNBER/Gellison.pdfon November 26, 2008
2008, Price Taker, Investopedia, http://www.investopedia.com/terms/p/pricetaker.asp?viewed=1last accessed on November 26, 2008
From the perspective of the firm, Pfizer and Wyeth can combine their diverse strengths and capabilities, and merge their talents and skills thus enabling them to become more profitable and lucrative. Doing so, they will be able to reach more clients, solidify their already existent client base, and, possibly, expand into other areas whilst establishing themselves in other states and/or in other parts of the globe.
More specifically, advantages to the firm include the fact that:
Quality staff, or additional skills, non-existent in one's own firm, can be acquired
That additional knowledge of the industry or sector can be gained;
That the business intelligence of other firm (or each particular company) can add to current experiences and knowledge;
That there is enhanced access to asses for new products and business development;
That the larger company can now gain a wider customer base, therefore increasing market share;
That there is…
Allocative efficiency. Economics. Help www.economicshelp.org/dictionary/a/allocative-efficiency.html
Merging with or acquiring another business Just Start Ups.com http://www.juststartups.com/
NY Times Pfizer agrees to pay $68 billion for rival drug maker Wyeth www.nytimes.com/2009/01/26/business/26drug.html
Online AntiTrust Issues
Antitrust law is a United States legal code that helps to maintain market competition by regulating anti-competition actions by organizations. The Sherman Act of 1890 was one of the first attempts to restrict large companies who fixed price, output and then manipulated demand to maximize their products. Standard Oil was one of the prime early examples of a company that controlled markets to the point that the government felt was detrimental to the entry of other competitors (Bork, 1993). In our current example, companies like Facebook and Google are being investigated, similar to Microsoft and AT&T, for controlling the Internet search process and/or network effects. This does not stop with Facebook and Google, but moves into many of the giant e-tailers (Amazon, EBay, etc.) that often use predatory or collusive practices to force customers into either advertising on their site, pricing to their scale, or in the…
Is Microsoft a Monopoly? If so, why does it matter? (2009). Thisnation.com. Retrieved from:
Monopoly. (January 20, 2005). The Linux Project. Retrieved from:
advertising claim that firms advertise to manipulate people's tastes and defenders argue that advertising provides information. Both are correct, and characterizing these views as "pro advertising" or the reverse is not particularly accurate. Most industries exist in a state of monopolistic competition, and advertising is one of the ways that companies can differentiate themselves from the competition, and through this differentiation companies can exert a greater degree of market control (No author, 2012).
Firms sometimes use advertising as an informational tool, as it provides an opportunity to reveal to consumers the differences between the advertised product and its competitors. Typically, each product within an industry will differ at least slightly with respect to its design and the quality level of the workmanship and other inputs. In addition, firms use other marketing elements such as distribution to help with differentiation. Advertisers often use brands as shorthand for the product or service…
Fournier, S. & Yao, J. (1997). Reviving brand loyalty: A reconceptualization within the framework of consumer-brand relationships. International Journal of Research in Marketing. Vol. 14 (5) 451-472.
No author (2012). Monopolistic competition, advertising. AMOSWeb. Retrieved May 30, 2012 from http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=monopolistic%20competition,%20advertising
g. food products). However, the majority of consumers are neither sophisticated, nor interested to invest more than the average expensed in such products. Such a company would benefit from creating products that are addressed to a larger set of consumer to increase its profits by selling more products, rather than at higher prices. Many airline national companies used to maintain a high price level, but had to create cheap flights due to the emergence of low cost airline companies and market deregulation in the 70s in U.S. And 90s in Europe (Knorr and Zigova, 2004), and one example for this case is Iberia.
4. Markets. Market characteristics vary as well from one country/region to another, ranging from legal regulations (e.g. tariffs) to buying habits. The globalization phenomenon puts pressure on companies to be increase their worldwide reach. Usually companies resort to market segmentation before defining their products or pricing strategies…
Baye, M. R, Morgan J. & Scholten P. (2003). Temporal Price Dispersion: Evidence from an Online Consumer Electronics Market. Journal of Interactive Marketing, Vol. 18(4): pp. 101-115.
Hirsh, L. 2006. How Big is Ecommerce? Ecommerce Times, February 27, www.ecommercetimes.com
Knorr, a. & Zigova, S. Competitive Advantage Through Innovative Pricing Strategy: The Case of the Airline Industry, Berichte aus dem Weltwirtschaftlichen Colloquium der Universitat Bremen, nr. 93, ISSN 0948-3829.
Mulpuru, S. 2006. U.S. eCommerce: Five-Year Forecast and Data Overview - North American Consumer Technology Adoption Study. Forrester Research, www.forrester.com
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 http://levine.sscnet.ucla.edu/general/whatis.htm
Geoff R., (2006). Perfect Competition. Retrieved April 21, 2011 from http://tutor2u.net/economics/revision-notes/a2-micro-perfect-competition.htm
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 http://www.cdam.lse.ac.uk/Reports/Files/cdam-2001-09.pdf
India Pharma Mfg
Many Americans have responded to the high prices on U.S. pharmaceuticals by purchasing them from other countries. Several countries have built cottage industries around shipping drugs to the United States. Initially, Canada was a favored country for this, given the reliability of drugs coming from Canada. However, price caps or not Canada still has Western prices for its pharmaceuticals, which has led to buyers searching the world for even lower-cost options, one of which is India. India's drug export market has grown at 24% per year, and now equals $14.7 billion, of which 55% goes to Western markets, the U.S. being the largest of these (Taylor, 2013). The total U.S. pharmaceutical market is $359 billion and is expected to grow to $476 billion by 2020 (PWeb, 2013). This paper will analyze the impact that Indian pharmaceuticals are expected to have on the U.S. market. This discussion is…
PR Web. (2013). U.S. pharmaceutical market to grow at a 3.5% cagr. PR Web. Retrieved March 27, 2014 from http://www.prweb.com/releases/us-pharmaceutical/medical-devices-market/prweb10773806.htm
Sandler, T. (2012). In India, oversight lacking in outsourced drug trials. NBC News. Retrieved March 27, 2014 from http://investigations.nbcnews.com/_news/2012/03/04/10562883-in-india-oversight-lacking-in-outsourced-drug-trials
Subbu, R. (2014). U.S. pharma companies benefit from large Indian generic market. The Hindu. Retrieved March 27, 2014 from http://www.thehindu.com/business/Industry/us-pharma-companies-benefit-from-large-indian-generic-market/article5764662.ece
Taylor, L. (2013). India: Exports of generics growing 24% a year. Pharma Times. Retrieved March 27, 2014 from http://www.pharmatimes.com/article/13-10-21/India_exports_of_generics_growing_24_a_year.aspx
CDN Honey Industry
The Canadian honey industry is widely fragmented and largely undifferentiated. There are approximately 7000 beekeepers and 600,000 colonies in Canada, according to the Canadian Honey Council (2010). Canadian honey is widely exported, to over 30 countries. Annual production is around 28,000 tonnes of honey, of which 16,000 is exported, the export value being $37 million. In recent years, honey production has slipped, but the reputation of Canadian honey abroad remains high (Agriculture Canada, 2008).
This paper will examine the Canadian honey industry, providing not only an overview of the industry and its trends, but also an examination of the industry's key success factors. A complete competitive analysis will be provided, including a Five Forces Analysis and a Value Chain Analysis. There will also be a key success factor (KSF) analysis included in this essay. The paper is intended as an overview of the industry and therefore will…
Agriculture Canada (2008). Canada's honey industry. Agriculture and Agri-Food Canada. Retrieved November 29, 2010 from http://www.ats.agr.gc.ca/supply/3308_e.htm
Canadian Honey Council. (2009). Production and value of honey and maple products. Canadian Honey Council. Retrieved November 29, 2010 from http://www.honeycouncil.ca/documents/Honey%20and%20maple%20production%202009.pdf
Canadian Honey Council website, various pages. (2010). Retrieved November 29, 2010 from http://www.honeycouncil.ca/index.php/honey_industry
QuickMBA. (2010). Porter's five forces. QuickMBA.com. Retrieved November 29, 2010 from http://www.quickmba.com/strategy/porter.shtml
Kudler Fine Foods
How does the organization compete in the marketplace? What are the strengths and weaknesses of the firm?
Kudler Fine Foods Company is dedicated to providing quality products and services to its customers. It is unique in the manner in which it delivers its products and assortments to consumers. For instance, the company stocks highly valuable gourmet products that are highly demanded by consumers. These products are unique as they are rarely offered elsewhere by competing firms. In addition, the customer service component allows it to charge premium prices to consumers. The company supplies many of the ingredients needed to create a healthy gourmet meal. As such, consumers have access to more convenience as gourmet ingredients are only offered by a few suppliers within the market place. By offering a large assortment, and combining this offering with superior service, Kudler Fine Foods (KFF) is attracting consumer market share…
1) Etro, F. (2009). Endogenous Market structure and the Macro Economy. New York: Springer
Economics of New Ideas and Innovations
This research paper discusses the economics of a new idea. Without new ideas and inventions, the economy might very well become stagnant or decline, as predicted by many early economists, who did not understand that impact that ideas and innovative technology had on global markets.
Technology is endogenous in the new growth theory, which holds that technology is a function of the capital and labor used to develop technology, the technology used in that process, and the economic environment. For the purpose of this paper, technology refers to the methods and tools that are used to generate with new ideas and more efficient ways of producing goods and services.
Ideas and technical innovations are crucial to the economy. If a country wants to grow, it must create an environment that encourages entrepreneurs and innovators to generate new ideas. Creating an economic environment that promotes…
Boneuve, K. (2001). Driving Innovation Through Software. The Software & Information Industry Association.
Clement, Douglas. (September, 2002). Creation Myths. The Region.
Farrell, Christopher. (1994). Economists for an Expanding Universe. McGraw-Hill Companies Inc.
Juma, C. 1989. The Gene Hunters: Biotechnology and the Scramble for Seeds. Princeton: Princeton University Press.
Role of Government in Healthcare/How Government Influence Sunnydale
Similarities between Monopoly, Perfect Competition and Oligopoly
Importance of Government Involvement with Health Care Entities at the Local, State, and Federal Levels
Structure, Conduct, and Performance Paradigm As It Relates o Health Care
Implications of the Sherman Antitrust Act on Sunnydale Care
Overview of the Structure and Operation of Medicare and Medicaid
Services hat Each Cover
Benefits and challenges of government involvement at Sunnydale Care
Similarities between Monopoly, Perfect Competition and Oligopoly
Monopoly and perfect competition
Both perfect competition firms and monopolies face similar production and cost factors. Both also are in the business of maximizing profit. Both have the potential of earning super-profits but in the long-term they would only achieve normal profits (Boundless, 2015).
Perfect Competition and Oligopoly
In both these is more than one firm in the market competing with the others and no single…
Tang N.I., Eisenberg J.M., & Meyer, G.S. (2004). The roles of government in improving health care quality and safety. National Center for Biotechnology Information. USA: U.S. National Library of Medicine. Retrieved on 23rd September, 2015 from http://www.ncbi.nlm.nih.gov/pubmed/14738036
U.S. Advisory Commission on Intergovernmental Relations. (1994). Local Government Responsibilities in Health Care. U.S. Washington: Advisory Commission on Intergovernmental Relations.
West Group. (2015). Anti-Trust Law Web Page. The New York Technology. Retrieved on 23rd September, 2015 from http://googleweblight.com/?lite_url=http://iris.nyit.edu/~shartman/mba0101/manufacture.doc
Prevent Competitive Markets in the United States
The United States follows a system of "free market economy" in which most businesses are privately owned and where individual producers and consumers determine the kinds of goods and services produced as well as the prices of such products. Competition is a key factor in market economies as it keeps the prices of products in check, forces the competitors to enhance the efficiency of their production process, and drives the inefficient producers out of the market. However, "perfectly competitive market" is largely a theoretical economic concept which does not exist in any country and most countries, including the U.S., follow a system of mixed economy. In such 'mixed economies,' there are several factors which prevent the existence of a perfectly competitive market and the U.S. is no exception to this rule. In this paper, we shall discuss some of the factors that work…
Karier, Thomas. Beyond Competition: The Economics of Mergers and Monopoly Power. Armonk, NY M.E. Sharpe, 1993.
United States (Economy)" Article in Encyclopedia Encarta. CD-ROM Version, 2003
Such markets are known as 'oligopolies.'
As long as it is not created specifically to monopolize commerce in interstate trade
Total revenue represents all the company income. Total revenue is calculated by multiplying the price of products with the quantity sold. Typically, total revenue is calculated as follows:
Total revenue = price x quantity
Where price (P) and quantity (Q).
As being revealed in Table 1, total revenue is calculated by multiplying price with quantity, when firm produces 2 quantities of goods, firm's total revenue is $10, however, when a firm produces 3 quantities of goods, its total revenue is $15.
Marginal revenue is an additional revenue that a firm generates when a firm sells additional unit of output. The marginal revenue plays an important role in the perfectly competitive firm where a perfectly competitive firm maximizes its profit when marginal revenue is equal to marginal cost. The formula used to calculate marginal revenue is:
Marginal revenue= Change in total revenue/Change quantity.
The average revenue is calculated…
Aderton, (1977).Economics. Pearson Education
Sloman, A and Sutcliffe, M (2004). Economics for Business. Prentice Hall.
The government should provide health care, because the economic characteristics of health care make it ripe for abuse in a market environment. Government should provide as a service to its population those goods that, for one reason or another, are open for abuse in a normal market economy. Normally, the main condition is natural monopoly, which makes the case for government involvement in commodities like electricity, water, or policing. Health care is not a natural monopoly in that there can reasonably be a number of different providers, but it has other characteristics that make it a strong candidate for government intervention.
In even the freest capitalist economies, there are public goods that the government provides. The government provision of certain services is accepted by populations because the alternative -- total anarchy -- results is a severely degraded quality of life. No government services at all is a failed…
Besley and Gouveia write about different modes of health care provision. They discuss in particular some of the cost drivers in the American system, and evaluate some other systems in order to come to some conclusions about what other options exist. They note that insurance is a key issue for a private health care system, and because of this most countries opt for public health care systems, typically with mandatory insurance.
Gupta and Davoodi seek to understand how corruption affects the provision of government services, including health care. Unfortunately, their analysis has significant bias, as they begin with the assumption that government-run programs are inherently corrupt.
Transparency International is an organization that measures the level of government corruption in all the countries of the world. This source was required to examine the claims of Gupta and Davoodi. It was found that in the West there is very little government corruption. While the U.S. has more than most Western nations, it remains a spurious claim on the part of Gupta and Davoodi that corruption is inherent in government programs. Further, the line between corruption (accepting payment in return for favors) and capitalism (accepting payment to provide a service) is not explored.
Lloyd and Sreedhar wrote about Hobbes' moral and political philosophy. Hobbes' seminal discussion about the state of nature is relevant because societies have evolved different forms of governance specifically to avoid the state of nature; an argument that government should not be involved in health care must consider the implications of having such a weak government -- these range from the state of nature to poor health outcomes and quality of life measures.
Production, Costs, And Profits
Business is booming at a local fast food restaurant. It is contemplating adding a new grill and French fry machine, but the day supervisor suggests simply adding more workers. How should the manager decide which alternative to pursue? What would happen if too much labor is hired without an addition to capital? Explain using economic terms.
It is difficult to answer this question without understanding the current capacity of the restaurant. In order to truly answer this question, one would have to understand if there are already workers dedicated to running the grill and French fry machines in a way that they already operating at or near full capacity. If the answer to that question is no, then increasing production may be a simple matter of increasing the number of employees, so that an employee could be dedicated to running the food preparation equipment, thus maximizing…
Baker, S. (2000). Marginal cost and the output rate under competition. Retrieved February 7,
2012 from University of South Carolina website: http://hadm.sph.sc.edu/Courses/Econ/MCost/Mcost.html
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://catalog.flatworldknowledge.com/bookhub/reader/21#
Market Efficient espect Set Information Impossible Makes Abnormal Profits
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.
Postal Service (USPS) operates at a loss but its closest competitors -- UPS and FedEx -- both operate at a profit. Suggest how fixed costs have contributed to the situation of the USPS. Provide support for your response.
I would suspect that the fixed costs of contributing to employee's retirement funds (Risk Analysis Research Center, 2009, p. 4) and also their restriction from closing local offices (Slentz and McCann, 2009, p. 12) contributes to higher fixed cost at USPS than FedEx because FedEx is not unionized and while UPS is unionized, and thus experiences a fixed cost that is incurred to the level of union contracts, those contracts are more negotiable for UPS than USPS, and nonexistent or fluid for FedEx. Furthermore while union contracts probably affect the rate of closure for physical facilities for UPS, this would probably be more negotiable than for USPS and…
5. From the e-Activity, compare and contrast the lemon law in two different states and analyze which offers the best protection for the consumer. Suggest what both states could do to improve their laws. Provide support for your response.
The California and Alaska Lemon Laws are largely the same except the California law (State of California Department of Justice 2012) restricts replacement / compensation to vehicles driven under 18,000 miles within the warranty period but the Alaska law (Carlemon.com, n.d.) does not restrict the warranty period by number of miles driven. All states could benefit from a uniform definition of "reasonable attempt" to replace or refund, which depends upon, and thus also entails, a standardization
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).
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 https://www.youtube.com/watch?v=T3F1Vt3IyNc
Links to Government Regulation of Monopoly
It remains important, however, that the company does not violate any of the prevailing laws with respect to marketing. Laws concerning false advertising and intellectual property (especially trademark) violations must be paid due attention when developing the marketing strategy. At present, BCC seems to be well clear of any laws on these subjects, but they are worth acquiring knowledge of nevertheless.
Bathurst Carbon Cutters cannot reject the idea of marketing outright, for two reasons. The first is that the notion of marketing as destructive is false, especially given that the underlying theory of the business appears to be that convincing more Bathurst residents to utilize bicycles will ultimately benefit the environment. If this is the case, then the business is faced with an ethical dilemma should it proceed, not only because marketing activity is inevitable but because the name of the company conveys to the consumer the idea of…
Silk, A. (2006). What is marketing? Boston: Harvard Business Press.
Investopedia. (2010). Perfect competition. Investopedia. Retrieved October 6, 2010 from http://www.investopedia.com/terms/p/perfectcompetition.asp
QuickMBA. (2007). The marketing mix. QuickMBA.com. Retrieved October 6, 2010 from http://www.quickmba.com/marketing/mix/
No author. (2010). A brief history of marketing. Bournemouth University. Retrieved October 6, 2010 from http://media3.bmth.ac.uk/marketing/02defining/01history.html
A lot of critical information on the duty of care and its itinerant duties is located on every Secretary of State website in each state's corporation statute regarding the duties of care and loyalty.
ut the discussion until now has dealt (in a lot of practical matters) with large corporations. In a small corporation, the directors, officers, and shareholders may all be the same.
In larger corporations with a larger oard of Directors, it may not be possible for all directors to participate in certain oard decisions. In that case, the oard of Directors may appoint an Executive Committee to handle certain matters.
The grant of power from the oard to an Executive Committee is included in the ylaws. The grant of power to an Executive Committee can be fairly extensive and can authorize the Committee to act on behalf of the oard and with the authority of the oard.…
Emerald Partners v. Berlin, 787 A.2d 85, 90 (Del. 2001)
Guttman v. Huang, 823 A.2d 492, 502 n.34 (Del. Chapter 2003)
Emerald Partners v. Berlin, 2003 WL 21003437, *39 n.133 (Del. Ch.)
Orman v. Cullman, 794 A.2d 5, 14 (Del. Chapter 2002)
Investment is an injection because money enters the economy that was previous not in the economy. Leakages and investments balance each other when the rate of return on investment compels sufficient investment. Thus, the interest rate determines the equilibrium point between savings and investment. Both households are more sensitive to changes in the real interest rate. A declining real interest rate will allow households to increase demand as their cost of borrowing decreases. For businesses, the real interest rate is less important because it impacts both the cost of borrowing and the expected rate of return on investment.
6. If there is increased labor supply, the following changes occur to the macroeconomic model for general equilibrium. This will allow more products to be produced, which but it should also decrease the cost of labor. Thus, the cost of producing goods will be decreased. The cost of capital should decrease in…
At the beginning of the simulation, the Neutron was a unique product in the computer world. The company could view itself as a differentiated player in the competition PC market, or it could view itself as having a monopoly on the new product. To enjoy the full benefits of monopoly pricing, there needs to be inherent demand for the product. The Neutron, however, is new. Increasing the price moves the product up the demand curve. A higher price also signals to the market that the product is unique and valuable.
At the outset, with a new product and no competitors, there are two reasonable strategies. The first is penetration pricing, which would seek to maximize demand. This does not, however, maximize profit. The finance department may not approve of this strategy because it does not offer the best return to the shareholders. Likewise, the marketing department does not want…
Quick MBA (2010). Porter's five forces. Retrieved October 18, 2011 from http://www.quickmba.com/strategy/porter.shtml
Quick MBA (2010). Porter's generic strategies. Retrieved October 18, 2011 from http://www.quickmba.com/strategy/generic.shtml
Quick MBA. (2010). The product life cycle. Retrieved October 18, 2011 from http://www.quickmba.com/marketing/product/lifecycle/
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 http://www.forbes.com/sites/hbsworkingknowledge/2014/08/11/the-business-of-behavioral-economics/
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 http://www.jstor.org/discover/10.1086/262111?uid=3739920&uid=2&uid=4&uid=3739256&sid=21105862412373
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
In perfect competition, only normal profits are made in the long run and monopolistic competition trends towards a relatively equal distribution of income (Hartzenberg, 2005). This relationship implies that the further the market is from perfect competition, the further the distribution of income will be from equal. An oligopoly, therefore, will not deliver equal distribution of income.
In perfect competition, distribution of income is equal because all factors of production are earning their opportunity costs. An oligopoly sees adjustments to barriers to entry and exit, as well as a constriction of information. This reduces buyer power. If buyers have a lower degree of pricing power, the seller will take more of the income. Income distribution, therefore, is tilted in favor of the firms in the oligopoly.
Sakai, Y. & Yamato, T. (1989). Oligopoly, information and welfare. Journal of Economics. Vol. 49, 1, 3-24.
Hartzenberg, T. (2005). Economics:…
Sakai, Y. & Yamato, T. (1989). Oligopoly, information and welfare. Journal of Economics. Vol. 49, 1, 3-24.
Hartzenberg, T. (2005). Economics: Fresh perspectives. Cape Town: Pearson/Prentice Hall.
" (Raines and Leather, 2007) This goal was achievable through wealth acquisition derived from "monopoly profits from successful innovations."(Raines and Leather, 2007) Schumpeter held that the ability of these businessmen is that which determines how far they will rise "because in that schema rising to a position and doing well in it is one and the same thing." (1950: as cited in Raines and Leather, 2007) Schumpeter also discussed the 'human element' in the political democratic decision-making in his work "Capitalism, Socialism and Democracy" and in one section which he entitled 'Human Nature in Politics' he stressed that the mindset of capitalism was one of rationalism and held a view of individual rationality as "consumers and in political activities as being quite limited." (Raines and Leathers, 2007) Schumpeter rejected the "idea of the human personality that is a homogeneous unit and the idea of the definite will that is the…
Henrekson, Magnus and Jakobsson, Ulf (2003) Where Schumpeter was nearly Right - the Swedish Model and Capitalism, Socialism and Democracy 3 May 2001. Journal of Evolutionary Economics Vol. 11 No. 3, 2001.
Raines, J. Patrick and Leathers, Charles G. (2007) Behavioral Influences of Bureaucratic Organizations and the Schumpeterian Hypothesis Controversy. Online available at http://www.aabss.org/journal2000/f07Raines.jmm.html
Schumpeter, Joseph a. (1934). The Theory of Economic Development. Cambridge: Harvard University Press (1911).
Schumpeter, Joseph a. (1928). "The Instability of Capitalism," Economic Journal, September: 361-386.
Dell Computer Future Market Condition: Outlook & Analysis
At present, the current structure of the PC market is a market structure closer to one of perfect competition, with a very buyer rather than seller friendly focus. Many buyers and sellers and a high level of price volatility characterize the PC industry. However, no market is a textbook definition of any market structure. Although there are many products in the PC industry, they are not all exactly similar in nature and with many substitutes, and there are higher barriers to industry entry than in other competitive market structures -- thus this state of perfect competition is somewhat limited. (Investopedia, 2005) But overall, Forbes Magazine has said the PC market growth will moderate in 2005 due to a lack of significant new product introductions in a too-competitive marketplace. ("Market Share," 2005)
Impact of New Competitors
No new competitor has quite…
Bean, Michael. (2005) "Anatomy of A Price War." Forio. Retrieved 6 March 2005 at http://www.forio.com/pricing20010912.htm
'Dell Is Named in Lawsuit Over Financing." (Mar 4, 2005) Forbes. Retrieved 7 March 2005 at http://www.forbes.com/associatedpress/feeds/ap/2005/03/04/ap1863170.html
Investopedia. (2005) "Economics Basics: Monopolies, Oligopolies, and Perfect Competition." Investopedia.com. Retrieved 6 March 2005 at http://www.investopedia.com/university/economics/economics6.asp 'Market News," (15 Jan 2005) Forbes. Retrieved 7 March 2005 at http://www.forbes.com/markets/company_news.jhtml?ticker=DELL
Pencil Manufacturing and Marketing
Production and Marketing of Pencils
Profit and Loss
Principle of Profit
Factors of Production
Economic Conditions Affecting the Business
The Equilibrium Point or Market Price
Competition within the Free Market
Benefits and Limitation of Free Market
Import and Export of Pencils
Strategies for eaching Global Market
Managing Business Ethically and esponsibly
easons for Business Ownership
Development of the Industry
Cross-Functional Semi-Managed Teams
Techniques to Improve Manufacturing
Operation Management Planning
Facility of Location
Motivation of Employees
Training the Employees
Objectives of Compensation and Appraisal
Determining Human esource Needs
Determining Threats to the Industry
This paper discusses the complete process of manufacturing of a…
Coper, L. (2010, July 1). Marketing Week. Five Strategies for a Successful Market Brand.
Dube, L. (1998). The copying Pencil. Composition, History, Conservation and Implications.
Francis, M. (2007, January 20). Changing Minds. Effective Management.
Ingram, D. (2009). Small Business. The Difference Between Process and Product Layout Manufacturing.
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…
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.
Deere Cost Management
1. What happens to procurement and its relationship with the supply based when the need for budgeted cost management interferes with communication, relationships, and other outside market pressures?
The procurement and its relationship with the supply based when the need for budgeted cost management interferes with communication, relationships, and other outside market pressures. This state of affairs develops a competitive advantage owing to the strategic discerning to make procurement and supply base. The communication evades being financial damage as a result of the precise procedures between procurement and supply base. The relationships generate trust and other market pressures generate culpability between procurement and supply base efficiently and efficaciously. This state of affairs strengthens the company’s market share in the business setting with massive success (Fredendall and Hill, 2016).
2. How does market competition influence your ability to sell for a price that allows you to cover costs…
The interest of certain categories of public in promoting this trend has significantly intensified. Therefore, the demanded quantity of organic products is likely to increase.
2. There are several factors that influence the organic products supply. The most important factors are represented by prices, costs of production, prices of traditional products, weather, and technology. In the case of the influence of prices, if they increase the supplied quantity of organic products is likely to increase also, because the company is interested in increasing its profits. The costs of production are also very important. If these costs increase, it will be more difficult for the company to produce these products, leading to reduced supply.
The prices of traditional products can determine the purchasing behavior of organic products buyers. If prices of traditional products increase, becoming similar to those of organic products, some of these customers can orient towards organic products, leading…
Shiller text. The chapter in question covers competition. The five main learning objectives of the chapter are to identify the characteristics of perfectly competitive firms and markets, illustrate how total profits change as output expands, describe how the profit-maximizing rate of output is found, recite the determinants of competitive market supply and explain why profits get eliminated in competitive markets.
The first main point of the chapter is market structure. Figure 6.1 shows a spectrum that includes perfect competition, monopolistic competition, oligopoly, duopoly and then monopoly. The chapter makes reference to terms like how firms wield their power in the market (market power) and what each of the above market structure types make reference to. On page 119, the condition known as perfect competition, where no firm in particular has market power, is described. Page 120 and 121 talk about price takers and price setters and then the…
Shiller, B. (2009). Essentials of Economics (7th Ed.). New York, NY: McGraw-Hill Irwin. ISBN: 10: 0-07-337580-2
In a state of perfect competition, an equilibrium price will be set for the juice that matches the aggregate marginal cost. This is likely to decrease the production capacity of producers who are producing above this cost. The subsidy distorts this market to an extent, allowing more Florida producers to continue to remain in the business. Under natural market conditions, however, the amount of acreage under development in Florida would decrease as the result of Brazilian competition.
Another issue is the erosion of pricing power that the growers have experienced over the years. As the retail side of the industry has experienced consolidation, the buying power of retailers has increased significantly. This has the effect of transferring most of the risk of orange juice price fluctuation to the producer, whereas through much of the 20th century this risk was offloaded onto the consumer. The FDOC had worked to hedge against…
In developing countries, consumers are more affected for two reasons. One is that consumers are more likely to buy raw ingredients. ithout manufacturing entities to absorb some of the commodity price increases, consumers are left to absorb almost all of the increase (Ibid.). As a result, food prices have increased more in the developing world than in the developed world. Additionally, consumers in these countries already expend a significantly higher percentage of their income on food than do consumers in estern nations. Thus, demand for food in the developing world is price elastic and consumers suffer because they are unable to meet their food needs.
In the developed world, increased food prices suppress demand in other sectors of the economy, which can cause minor shocks in employment and investment in some businesses and industries. In the developing world, food price shocks can result in starvation and civil unrest. The recent…
Lapidos, Juliet. (2008) "Why are Global Food Prices Soaring?" Slate. Retrieved December 4, 2008 at http://www.slate.com/id/2187882/
Wiewel, Wim & Persky, Joseph. (2002) Suburban Sprawl M.E. Sharpe, Armonk NY, 2002.
Barnier, Michael. (2008) "Europe is Key to Solving Food Crisis" Tehran Times. Retrieved December 4, 2008 at http://www.tehrantimes.com/index_View.asp?code=184060
Clayton, Mark. (2008) "As Global Food Costs Rise, are Biofuels to Blame?" Christian Science Monitor. Retrieved December 4, 2008 at http://www.csmonitor.com/2008/0128/p03s03-usec.html