A Comparison Of Perfect Competition And Monopoly Economics Essay

A Comparison Of Perfect Competition And Monopoly Economics Essay Introduction In order to answer the question of whether ‘the competition is always necessarily beneficial to consumers’, it is vital to address the operation of two extreme sides of the market organisation. The extreme sides of the market organisation are Perfect competition and Monopoly. Once we accustom ourselves with the working of this dichotomy of market organisation, only then we can compare monopoly and perfect competition on the basis of efficiency in the market and specifically its impact on the consumers. Thus, in this essay we would first go through a brief description of perfect competition and monopoly and how the resources are organised in these two different market structures to achieve the goal of profit maximisation. By the allocation of resources and the level of output to be produced in these two different markets, we would compare their efficiency and inefficiency and the possible benefits and limitations of these market structures in different indus tries to the consumers. Perfect Competition Perfect competitive markets are those where there are large number of small buyers and sellers dealing with a homogeneous product and a single small firm do not have influence on the price allocation and acts as a price taker (Mankiw & Taylor, 2006). In addition to this, in a perfectly competitive market the mobility of the factors of production is perfect in the long run and both the producers and the consumers have perfect information regarding the product (Frank, 2003). A competitive firm being the price taker, to achieve the goal of profit maximisation, it produces a certain level of output where the price is equal to the marginal cost of producing an extra unit of product, a ‘Pareto efficient’ output level (Varian, 2006). As the price is also the marginal revenue for a competitive firm, so the profit is maximised at the condition where marginal revenue is equal to the marginal cost (Frank, 2003). This means that for a com pany to remain in business, it has to cover its cost, which is to say the price must be at least greater than the ‘minimum value of the average variable cost’ (ibid.) Monopoly At the extreme opposite end of the market organisation is monopoly. Monopoly is a market structure, where a single firm serves the entire market and is the only seller of a particular product with no close substitutes (Frank, 2003). Moreover, being the only firm in the market, it does not take any price but instead it has influence over the market price and produces a level of output at a particular price where the firms’ profits are the highest (Varian, 2006). Monopoly is created when a firm either takes control of key resources or the government issues a license and give them exclusive right for the production of goods and services. An economy of scale is another source of monopoly for a firm, where a single firm has more efficient cost of production as compared to a large number of firms and creates a natural monopoly that arises with public utilities like gas, electricity etc (ibid.). Furthermore, a monopolist will set his price higher than his marginal cost at a point where his marginal revenue is equal to marginal cost, in order to make positive economic profit (Frank, 2003). However the demand curve is negative for a monopolist and being a ‘price setter’, it cannot just randomly set a high price. It would rather set a price that the market could bear and maximises its profit (Mankiw & Taylor, 2006).

Frank Luntz Lections on Beliefs, Attitudes, and Values Essay

Frank Luntz Lections on Beliefs, Attitudes, and Values - Essay Example Similarly, there are certain aspects in the manner he makes his presentation which needs to be corrected so as to make it even better. Luntz is very keen on involving his audience in his presentation. He does not simply stand on the podium and give a speech. Rather, he occasionally asks questions which are very important in keeping the audience much engaged and alert. He interludes his talk with a number of very interesting questions which effectively connect with the audience. This is certainly an important part of making a successful speech and ensuring that the audience is motivated to listen further. In the same way, Luntz does not just stand in one place at the podium during his talk. He greatly moves around the podium and as he walks across and talks. This makes people very engaged and not bored. The focus in this regard is to ensure that the audience is not fixated and subsequently bored. In this regard, Luntz is very effective in the context of audience adaptation. In making his points, Luntz uses plenty of relevant examples which the audience can easily associate with. He does make his presentation full of theory and abstract reasoning. Rather, he talks about the daily things which his audience relates with. In a way, Luntz has a great sense of humour which helps in keeping the audience alert and greatly involved. This humour is not actually far-fetched but is drawn from the very situations which the audience experience daily. Luntz makes a comparison between the performance of Obama and McCain in the 2008 election campaigns. He attributes Obama’s success to the ability to easily connect and relate to the audience while making his speeches. On the other hand, McCain is presented as somebody who highly depends on the teleprompter and does not thereby clearly connect with his audience. Luntz maintains a proper eye contact with the audience and also greatly applies gestures in driving his points.     

Animals as source for human organ transplants Case Study

Animals as source for human organ transplants - Case Study Example The issue mainly relates to problems associated with xenotransplantation. The purpose of this paper is to discuss the problems raised and discuss whether the problems raised concern me or not. The paper will also explain the main ethical approach groupings that are most influential in my thinking about the case and the consequences most important to me regarding the case. Xenotransplantation prospect is associated with public health issues. It is reported that xenotransplantation is capable of transferring some risks to the wider society (Patel and Rushefsky 103). The major concern is that xenotransplantation is capable of transmitting infectious agents, like viruses from animals to human beings. It is noted that retroviruses are the major concerns since there exist several examples of such viruses moving from one species and becoming infectious in another. It is also noted that retroviruses fails to show signs of the disease at its initial stages (Institute of Medicine 42). Therefore, in case transplant patients become infected with a retrovirus, then the virus would be capable of spreading to the patient’s family, close contacts, carers and the entire population before it can be established that the infection has occurred (McLean and Williamson 43). The widespread introduction of xenotransplantation has cost implications to the health care system. Opponents of Xenotransplantation argue that the procedure would displace other methods, which are perhaps more worthwhile (McLean and Williamson 43). Therefore, the procedure should not be embraced. Institute of Medicine note that the argument is based on the fact that survival rate for xenograft recipients has been poor (42). As such, early recipients are the one being used as subjects of experiment for this technological development. Some of the issues raised with regard to the case concern me while others do not. The ones that concern me

Text Analysis essay Example | Topics and Well Written Essays - 1500 words - 1

Text Analysis - Essay Example The paper adopts the thesis Steve jobs speech appeals more to college students than his academic background. Steve Jobs is one of most celebrated inventor, businessperson, philanthropist and personality (Wilson 56). Steve is as one of the cofounders of Apple Company and computerized animation (Pixar animation). However, analyzing Steve Jobs at an academically it a different story. The quagmire of the speech at one of the most respected academic institutions is the fact he openly refers to his academic life standing at the podium. Steve’s speech is well crafted and depicts all the three elements that are necessary to capture the audience attention. Steve Jobs effectively uses irony to introduce the fact that he has never graduated by uttering the words â€Å"†¦This is the closest I have ever got to college graduation†¦Ã¢â‚¬  (The Apple History Channel). Steve speech audience is composed of mostly young graduands from Stanford University. Steve Jobs understands well the level of education of his audience and goes directly to the main points in his speech. The environment and atmosphere that the audience offer Steve Jobs encourages him to continue with the speech. The audience is patient and responds well to Steve Jobs humor and emotional words. The composure of the audience implies they are eager to listen and learn new concepts. The audience responds well to Steve humour and applause him when he is for the first time. Steve Jobs uses tonal variation and posting from time to time giving audience time to comprehend his points. The audience respond during the pauses reveals they are attentive and listening to the speech keenly. There is very little murmuring during the speech, the audience in this case are a matured lot and respect the speaker Steve Jobs. The audience is more rejuvenated and fired up to face life at the end of the spe ech. Steve Jobs success overshadows the fact that he has never graduated from college and effectively

This for East Asian paper Essay Example | Topics and Well Written Essays - 1750 words

This for East Asian paper - Essay Example The country has a population of more than 1.35 million with 22 provinces, two special administrative states, Macau and Hong Kong and four directly controlled states which are Beijing, Shanghai, Chongqing and Tianjin. The country is the second biggest nation in the world as computed by the land area covered with an area of 9.6 million square kilometers. The selected topic is considered to be relevant and suitable for study because of the tremendous growth that China has experienced over the years, the complexities inherent to the country and the impressive strategies used by the country to deal through the various economic fractures and downturns faced by it over the years of its existence. The word Chinese refers to anything that is related to the country China and its people, culture, ethnicity or language. Chinese from the perspective of an individual refers to any person who is an inhabitant or resident of China or an individual who belongs to the Chinese ancestry. Chineseness refers to the state of having the unique characteristics pertaining to China including its culture, ethnicity, language, political and social aspects etc. (Leutner 404). The culture of China is one of the oldest cultures in the history of the world. The significant components of the Chinese culture are music, architecture, martial arts, religion, ceramics, visual arts and cuisine. The culture of China is dominant over wide geographical regions in the eastern parts of China. The traditions and customs of China vary greatly in towns, cities and provinces. The traditional culture of China is spread over wide geographical territories in which each region is divided into separately identifiable sub cultures. Each of these regions is represented by at least three ancestral components related to the ancient Chinese customs and traditions. For example, ancient cities like Guangdong

Develop a Summary on the State of the US Economy Essay

Develop a Summary on the State of the US Economy - Essay Example Additionally, access of low-interest loans and other credits has been easy. This is a chance to property owners to refinances their mortgages. Car sales have also increased significantly due to sufficient liquidity; consumers can take advantage of cheap financial incentives and price discounts by to buy vehicles. However, car manufacturers do not make profit due to the inexistence of price power. The strength of the United States economy is also increasing due to development of GDP brought by defense spending. According to Kubarych, (2002), defense spending especially on military hardware is contributing close to half of the U.S. GDP. The rate of unemployment is still high despite the decrease in the number of job layoffs. Statistics shows that unemployment rate of in the U.S. currently stands at 6% with no hopes of falling. A study by Kubarych, (2002) explains that unemployment rate is likely to increase even further in the future. In addition, most businesses and industries in the U.S. are still making losses despite the economic recovery. Finally, borrowers especially those going for less credit are under tight restriction from lending institutions. The development of the United States economy is likely to slow down in the next 12 months due to factors such as harsh weather conditions, reduction of spending on both the U.S. and countries Europe. Compared to recovery of previous U.S. economy, the recovery of the current economy is slower. However, increase in government spending will likely to foster the U.S. economic growth. A change of fiscal policy is needed to increase economic recovery of the United States. Application of expansionary fiscal policy will improve economic recovery. The fact is that expansionary fiscal policy will lead to increase in aggregate demand. The government does this by increasing spending and reducing taxes. The result is that consumer spending will rise significantly due to availability of extra disposable income (Boyes &

Microsoft and Antitrust Essay Example | Topics and Well Written Essays - 500 words

Microsoft and Antitrust - Essay Example I therefore agree that Microsoft attempt is one of gaining monopoly power in the software industry. The windows operating system and the internet explorer browser are completely different products that should not be bundled together (Evans, 2002). Microsoft decision is thus one that denies fair competition from other browsers and their restrictive licensing is monopoly intended. In a pure monopoly one firm has the complete control in the production of their products because of barriers of entries for other businesses. There is therefore no competition in the industry and the pricing is not based on the forces of demand and supply. I am against monopoly structure because it promotes inefficiencies and discourages competition. Consequently, monopoly products are of low quality and are highly priced hence encouraging consumer exploitation. In a monopoly, prices and quantity demanded is set at the point of intersection of the marginal revenue and marginal revenue curve. If the marginal cost cuts the marginal revenue curve from the lowest point possible, it means that the firm is operating at optimal capacity and there is no room for expansion and it is at this point that the profit is maximized (Fellner, 1949). Since the demand curve is downward sloping, a reduction in price is accompanied by a corresponding increase in the quantity sold. The firm is therefore the price marker and therefore records high economic profits. Monopoly also deprives consumers their sovereignty of choice, as there are no substitutes for the company’s products. Failure or conditions that can halt the production of a company’s products will therefore result in acute shortages. Monopoly pricing coupled with artificial shortages to the society will result into dead weight loss to the society (2009). The locative inefficiencies in monopoly lead to loss by the society. Moreover, monopolies have been