Monopolistic competition

The above chart 4.0 illustrate comparing of perfect competition and monopoly. In the perfect competition price and quantity are determined by the intersection of the demand and supply curves which is known as equilibrium where as in monopoly the equilibrium quantity falls, and the equilibrium price rises. In contrast, monopoly market profit maximise quantity is at the point where the marginal revenue (MR) curve intersects the marginal cost (MC) curve and the profit-maximizing price is determined…

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…

Solyndra, A U.S. Solar Panel Manufacturer Solyndra was the first manufacturer to receive a guaranteed loan from the government under the Energy Policy Act of 2005, and was endorsed as a model manufacturer for the clean energy economy. In this essay we will look at a brief history of Solyndra, their unethical behavior, ethical framework, and the laws that pertain to this company. It is always an unfortunate situation when a large company, such as Solyndra, is viewed as becoming very successful…

acts attempt to prohibit anticompetitive practices and prevent unreasonable concentrations of economic power that stifle or weaken competition. The Sherman Act made agreements "in restraint of trade" illegal. It also made it a crime to "monopolize, or attempt to monopolize … any part of the trade or commerce." The purpose of the act was to maintain competition in business. However, enforcement of the act proved to be difficult. Congress had enacted the Sherman Act pursuant to its…

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…

Annotated Bibliography Bush, Joel. "Student or Professional Athlete - Tax Implications in the United States If College Athletes Were to Be Classified as Paid Employees." Labor Law Journal, vol. 68, no. 1, Spring2017, pp. 58-63. EBSCOhost, search.ebscohost.com/login.aspx?direct=true&db=buh&AN=121769969&site=ehost-live. This is an article from the Labor Law Journal. The author of this article is an assistant professor at Lucas College and Graduate School of Business. He graduated from San Jose…

Discussion 1 Antitrust policies in the United States are both federal and state laws that are applied to regulate business conduct and organization of corporations. They are used with the aim of promoting fair competition and benefit consumers from unfair prices due to unfair competition practices. The antitrust laws prohibit unlawful mergers and unlawful business practices (Ftc.gov, 2015). Identify one way economic regulations impact monopolies and discuss whether or not you believe that works…

The notion of “plan for competition”, which is in contrast with “plan against competition”, seems vague when it functions in practice. Hayek demonstrates that the “successful use of competition as the principle of social organization precludes certain types of coercive interference with economic life”. However, he does not mean to eliminate all kinds of coercive…

determined? Is there bargaining between firms and workers? Equilibrium search theory provides a rigorous but manageable framework that can be used to address these and related questions. According to Cahuc and Zylberberg (2004) “The theory of perfect competition predicts that identical individuals with identical jobs should receive the same wage”. The authors…