Perfect competition

What defines an idealistic society? It could be where everyone is accepted, there are no social classes, or where no one is homeless or has to think about their next meal. In contrary, what defines a dystopian society? Kurt Vonnegut’s short story, Harrison Bergeron illustrates a dystopian society with total equality. The government achieves this status by authorizing handicaps for the citizens ensuring that nobody is smarter, better looking, or more athletic than anybody else, thus accomplishing…

effective way. Third, it helps reward innovation. New products that are created will end up meeting the needs of the customers. It’ll be better than the goods and services that already exist. Now for the disadvantages, the key to a market economy is competition. Therefore they don’t care for people who are at a competitive disadvantage. That would include kids, people with disabilities and the elderly people. Second, society only cares about the rich people in a market economy. They could…

According to Ronald Coase, founder of the Coase Theorem; the Coase Theorem is a theory in legal and economics that affirms that when there are complete competitive markets with no transaction costs, an efficient set of inputs and outputs to and from production-optimal distribution is selected regardless of how property rights are divided. In addition to that, according to Investopedia, “the Coase theorem asserts that when property rights are involved, parties naturally follow the most efficient…

The advanced pricing technique that would be most appropriate for a Sam’s Club or Costco would be second degree price discrimination. Second degree price discrimination is defined by Thomas and Maurice (2010, p. 583) as, “When a firm offers lower prices for larger quantities and lets buyers self-select the price they pay by choosing how much to buy.” Therefore, when the same consumer buys more than one unit of a good or service at a time the marginal value placed on consuming additional units…

The neoclassical economic approach assumes that working time is perceived in terms of time allocation and related choices taken by a rational actor with regards to the consumption of time. Thereby, time is considered as a scarce resource, as a day is limited to 24 hours and therefore the main aim of the rational actors is to achieve a maximization of personal time utility (Sirianny & Negrey, 2000). This implies that the actors act in order to achieve their individual preferences and this…

In this paper, Stephen Krasner expands on neoliberal institutionalism views towards global economics. Krasner defines two controlling variables for an economic system – state preferences and system structures. State preferences include aggregate income, social stability, political power, and economic growth. All four of these portions of state preferences relate the openness of a state to the respective aspect. For my argument, I will focus mostly on aggregate income and how it benefits the…

primarily focusing on worker coordinated actions in protest against their businesses and government. These three nations and their respective unions share the same reality however. Unions act as monopolies, requiring near total control and lack of competition over their commodity, in this case…

Paid Media v.s Owned Media With many things in life, you can earn your own way or pay your own way. Your marketing media channels are no different. Many will debate the advantages of Owned media vs. Paid media but the fact is that both are terrific ways of marketing your business, and each has its own place. Let's look at the differences and benefits of both. Simply put, Paid media is attention brought to your business, products or services directly through advertising that you paid for.…

defines the total output of the economy which is commonly accompanied by economic growth. However, for consumers, though some groups will have a benefit from the lower price, others will subsidise the winners. In other words, consumers would lose if competitions fell because of predatory pricing by the price discriminator, but, abnormal profits allow the firm increased funding to plough back into the business, which results in new products and amelioration in quality. Consumer loss is more…

1. Why are most construction companies small in size? Based on the explanation given in previous lectures of COSC 620 course. The size of construction companies is based on the theory of ‘Economies of Scale’. The concept of ‘Economies of Scale’ is originated from microeconomics, which states that there are more advantages for organizations/enterprises to run at a larger scale to minimize the impact of risk and spread out overheads/cost overruns. For example a smaller company handling less…