Economics and monopoly introduction Essay Example for Free

Economics and monopoly introduction Essay Characteristics: Single seller: One firm produces all the output of a particular product No close substitutes: Product is unique and if consumers want to buy it they must buy from the monopolist. Price maker: Since the monopolist is the sole supplier of the product, it can change the price by changing output. The firm faces a downward sloping demand curve, so increasing output lowers the price, decreasing output increases the price. The firm will set a price that maximizes its profits. Blocked entry: Entry to the market is totally blocked, meaning the firm has no immediate competitors. Barriers to entry may be economies of scale, legal, technological or another type. Nonprice competition: Since it has no competitors a monopolist cannot compete on price. Therefore, to attract new consumers the firm must engage in non-price competition such as advertising and public relations campaigns to promote its products attributes. Examples of Monopolies? www. welkerswikinomics. com 3 Unit 2. 3. 3 Pure Monopoly Monopoly Demand as seen by a Monopolist. Three assumptions: 1) Entry is totally blocked 2) The monopolist is unregulated by any government so can charge whatever price it wants. 3) The firm is a single price seller. It sells all units of output at the same price. †¢ A monopolist faces a downward sloping Demand curve. The firm D curve is the market D curve! †¢ A monopolist can sell additional output only by lowering its price (due to the law of demand). †¢ A monopolist must lower the price of all of its output, not just the marginal units, since it is a single-price seller. †¢ As a result, as output increases, the firms marginal revenue falls faster than the price. www. welkerswikinomics. com 4 Unit 2. 3. 3 Pure Monopoly Monopoly Demand as seen by a Monopolist Demand and Marginal Revenue Q 0 1 P1 2 3 4 5 P2 6 7 8 9 P3 10 P 172 162 152 142 132 122 112 102 92 82 72 TR=PxQ) 0 162 304 426 528 610 672 714 736 738 720 Demand and MR for a Monopolist P MR=? TR/? Q P1 P2 P3 D=AR=P Q1 Q2 Q3 Q MR Based on the above graph, over which range of output would a monopolist NEVER produce? Why? What information is needed to determine the profit maximizing level of output for this monopolist? www. welkerswikinomics. com 5 Unit 2. 3. 3 Pure Monopoly Monopoly Demand as seen by a Monopolist Elasticity and the monopoly Demand curve: †¢ Identify the elastic range of the demand curve. †¢ Identify the inelastic range of the demand curve. P Demand and MR PED1 P1 PED=1 Question: Why wont a monopolist ever produce at a level of output where it is in the inelastic range of its demand curve?

President Bill Clinton Essay -- Biography

Bill Clinton William Jefferson Clinton succeeded where no other Democrat since Franklin had. He was re-elected to a second term as President. Clinton also proved most of his critics wrong, surviving the personal scandals that came about. During his presidency, Clinton broke promises and failed in certain areas, but he still had support of the American people. Even after his affair with Monica Lewinsky, the people still wanted him in office. They liked what he was doing for the country and supported him no matter what. Bill Clinton was an important president in American history, even through his personal scandals and broken promises. William Jefferson Clinton, now known as Bill Clinton, was born on August 19, 1946. He spent the first six years of his life in Hope, Arkansas. William Jefferson Blythe, Clinton's father, died in an auto accident three months before his mother, Virginia Cassidy Blythe, gave birth to him. Clinton was raised in his grandmother, Edith Cassidy's home. His mother was often away from home taking nursing classes in New Orleans. It was at this time when Clinton's grandmother taught him to read at a very early age (American President 1). In 1950, Bill's mother married Roger Clinton. Roger was a car dealer and an abusive alcoholic. Bill Clinton attended public schools in Hot Springs, Arkansas. The whole family then moved to Hope, Arkansas, about an hour away from Hot Springs. When Bill was 15, his mother divorced Roger Clinton, only to remarry him quickly after. As a teenage boy, Clinton was obsessed with politics. He won student elections in high school, and later at Georgetown University in Washington, D.C. Clinton graduated from Yale Law School and moved back to his home state of Arkans... ...dn't happen, he had a huge impact on Americans, especially economically, and they supported him throughout his presidential career. During Clinton's presidency, the country had one of the longest periods of economic growth in history (Dumas 1). Bibliography Gerhardt, Michael J. "The Impeachment and Acquittal of William Jefferson Clinton." The Clinton Scandal and the Future of American Government. Ed. Mark J. Rozell and Clyde Wilcox. Washington,D.C.: Georgetown University Press, 2000. 142-148. "American President: Biography of President Bill Clinton." Miller Center of Public Affairs. Ed. Russell L. Riley. 2008. University of Virginia. 21 Feb. 2008 . "Bill Clinton." MSN Encarta. Ed. Ernest C. Dumas. 2007. 1 Mar. 2008 .

Economics Commentary †article on the Haitian Earthquake Essay

IN JANUARY last year, the quake causes the 2004 Asian tsunami, which kill 250,000 people and 300,000 injured. People were living under sheeting strung across wooden poles. There were too many vulnerable homeless people that aid agency can’t fit them in tens. People are trapped in supermarkets, debris and so on. I feel really sorry for them and I hope casualty’s family can be rest in peace. First of all, there will be a change in Haiti’s economy because there’s a huge effect of Haiti’s production. Haiti lost 250,000 people and 300,000 people were injured. They lost loads of labor and enterprise just because of this. Labor are human resources providing power to make goods and services Enterprise is a firm is an owner of a factory or company e.g. Nike, Apple. Capitals such as Houses, hospitals and factories were destroyed. Capital is man made resources that use for production. Many animals got kill by this earthquake and tsunami and destroyed timbers there’s loss of land. Land is natural resources that can’t add by human. Clearly, Haiti’s production is decreasing. In this case, we can use a PPF to explain the situation. PPF is a curve that shows the combinations of 2 or more goods that can be produced using all available resources. Here’s the PPF of Haiti before tsunami. PFF1 is Haiti’s PPF before tsunami and PPF2 is Haiti’s PPF after tsunami The PPF shift to the left means there’s decrease at both actual and potential output. Actual output is what the country is currently producing and potential output is the maximum outputs you can produce will all currently resource. Because Haiti lost a lot of capitals, land, labor and enterprise, its production is running down. Therefore, it’s PPF shifts inward. There’s also economic decline and economic deterioration. Economic decline is the percent decrease in real GDP per annum and economic deterioration is decrease in living standard for everyone in the country. There is a shift of PPF because of the environment factors (earthquake and tsunami). There was a change of Haiti people’s demand because of the tsunami and earthquake. Demand is amount of a good or service that consumer are will and able to buy at a given price over a period a time. What’s the change of Haiti people’s demand? Tsunami and earthquake destroyed a lot things, one of them is food. Haiti people are in starvation, there’s no more flesh food for them so their demand of canned food rose. It is because inferior good’s demand if rise when there’s war, natural disaster. Inferior good is a good that can replace another good as a substitute. The demand of Haiti people’s canned food This is a demand curve shows people in Haiti’s demand of canned food rise from D1 to D2. Because the demand determinate is not price of the good of itself, it’s environment, there’s a shift of demand curve to the right. Demand determinants are factors that can affect the demand such as: price, consumer income, and low populations†¦ Evolution Haiti’s earthquake and tsunami are lost and a pain we would never wanted to happen and they took millions of people’s life away and destroyed thousands homes. Here are few solutions I think it might help to raise back the economy of Haiti. First of all is asking UN for help. The United Nations (UN) is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace. United nation will usually provided aid and food for refugees. Second is building hospitals and factories. Recovering labor and capital is an important step to get the economy back on track. Education is more important in Haiti than other countries. They need new blood to contribute for the society and that’s where education is needed. ‘Good people equal good country’.

Concentrated Animal Feeding Operation (CAFO)

Although the term is sometimes used loosely to refer to any factory farm, Concentrated Animal Feeding Operation (CAFO) is a designation by the United States Environmental Protection Agency meaning any operation in which animals are fed in confined spaces, but specifically those which store a large number of animals and produce a large amount of water and manure waste as well as contributing pollutants to the surrounding environment. The disambiguation of the term CAFO from AFO can be a bit confusing, but the main focus of the distinction lies in the size and impact of the operation, with CAFO being worse all around — which is why it is often associated with all factory farms, even if they dont meet EPA standards to qualify as a CAFO. The Legal Definition According to the EPA, an Animal Feeding Operation (AFO) is an operation in which animals are kept and raised in confined situations. AFOs congregate animals, feed, manure and urine, dead animals, and production operations on a small land area. Feed is brought to the animals rather than the animals grazing or otherwise seeking feed in pastures, fields, or on rangeland. CAFOs are AFOs that fall under one of the EPAs definitions of Large, Medium or Small CAFOs, depending on the number of animals involved, how wastewater and manure are managed, and whether the operation is a significant contributor of pollutants. Although nationally accepted as a federal mandate, state governments can choose whether or not to enforce punishments and restrictions the EPA sets on these facilities. However, a repeated lack of compliance  with EPA regulations or repeat excessive pollution from factory farms could result in a federal case against the company in question. The Problem with CAFO Animal rights activists and environmentalists alike argue against the continued use of factory farms, especially those that qualify under the EPA as Concentrated Animal Feeding Operations. These farms produce an inordinate amount of pollution and animal waste as well as consuming large amounts of crops, manpower, and energy to maintain.   Furthermore, the harsh conditions animals kept in these CAFO are often seen as violating the basic rights U.S. citizens believe animals are entitled to — although the Animal Welfare Act  excludes farms from classification and investigation from their agencies.   Another issue with commercial animal farming is that the population of cattle, chickens, and pigs cannot be maintained at the current rate of global consumption. Either the food used to nourish cows to edible health will disappear or the cattle themselves will be overeaten and eventually go the way of the Wooly Mammoth — extinct.