Externality

xj Solving for pj (xj ) from equation (2) we get the inverse demand function pj (xj ) = L1 Y xj 1 max L1 Y rxj , and the problem can be rewritten as xj xj and the …rst order condition is [xj ] : 2 L1 Y xj 1 r = 0. It follows that xj = r 2 1 1 LY and it is clear that xj = x for all j since the right hand side does not depend on j. Plugging this on the inverse demand function we obtain r (3) pj = , and again it is clear that pj =…

Two hundred years ago, Joseph Carpue, an English surgeon, used a patient’s skin to reconstruct his own nose for an experiment. He couldn’t image that work will bring a billion dollar global industry nowadays. From 1997 to 2013, the total number of cosmetic procedures increased by 580 percent, surgical procedures increased by 100 percent increased and nonsurgical procedures increased by 1,187 percent (Goertzen and Snibee). As the increasing number of people, especially teenage girls and famous…

rewards from exchanges will be exhausted. A competitive market is a standard which is used to critic genuine market outputs and this is conducted by policy-makers. This theorem suggests that there are no market imperfections such as monopoly, externalities and public goods This theorem also explains the invisible…

Nowadays, most of the world is using mixed economy to allocate resources. Economy systems such as pure capitalism and communism was proposed in the 16th to 19th century previously. Capitalism is an economic system where the ownership of production, distribution and exchange of wealth is mainly under controlled by the private sectors. For communism, it is an economic system where the mean of resource allocation is decided by the government and what type of goods and services to be allocated.…

A typical stigma is forming among society that domestic violence only effects the couple that are experiencing the situation. One needs to redirect his/her thinking to the perspective of the entire “family,” whether it be mixed, bi-racial, large, or small. Domestic violence has the impeccable capability to affect the emotional well-being and health of a child. Adolescents, who are not fully matured to comprehend a situation of this magnitude, often become filled with emotions that they also…

A common complaint amongst college-age individuals is that college is often not very affordable. Although basically all accredited colleges have some sort of financial aid program, it is often not inclusive enough to reach the population necessary. A lot of students with very little family income are given enough aid to afford school, but the average middle-class student is buried in crippling debt. This leads to the conclusion that the basic financial aid policy that most colleges abide to is…

Social marketing focuses on tackling social problems that create a negative externality to the society. For example, alcohol, drug and cigarette etc. Although social marketing has been very effective in altering some social behaviors, its overall effects were limited. (Alcalay and Bell, 2000) Social marketing campaigns tend to promote…

another to keep the economy going, the environment needs to exist for people to live and if we keep treating the place we call home in an unethical manner there will not be a place for the future generation. Lastly, when discussing the negative externalities of fracking, there are clearly the need for federal regulations on the fracking process which proves there needs to be a focus on a shift in demand to protect the doctrine of public trust. The doctrine of public trust is the communal…

inevitably leads them to do wrong. With filial piety, one learns to respect elders, which advances their own personal virtue of Goodness. Those who are truly Good experience an unconscious effort to be Good – they are not exposed to the outside externalities of life. In this instance, filial piety is bounded by the idea of recognizing one’s contributions to society. The pursuit of Goodness that was accomplished by those who are older projects admirable actions that are desired by many.…

Aspiration means desire, aim, ambition, the goal towards which one strives. Aspiration is the powerful and basic sources of one's success. When they are combined with definiteness of purpose, perseverance and pulsating irresistible desire to translate them into action, they become dynamic .force. Aspirations are defined as integral and important parts of a self-picture, that represents him not as he, but as he would like to be. Aspirations determine…