Supply and demand

B. Macroeconomic and Industry Analysis Macroeconomics is the study of the behaviour of the economy as a whole based on key indicators to perceive the health of the economy. These indicators include national output, inflation and unemployment (Heakal, 2011). The Vodacom Group Limited 2013 Annual Report stated that in 2012, Vodacom appointed the Economics Information Services to assess and document the broader social and economic contribution that the company has made to South Africa between 2006…

In Chapter Four of What Money Can't Buy, Michael Sandel analyzes the market in life and death. Sandel provides evidence of how the markets impact a person's life. In this chapter, Sandel argues that life and death become an object of money. The two issues Sandel brings in this chapter are, Janitor's Insurance and Victicals. Sandel purpose is that trying to persuade people who think that markets are always a great thing. Sandel makes a strong argument against Janitor’s insurance and viatical…

Price skimming, also known as market skimming, is a product pricing strategy where then firm charges a high initial price when introducing a product. With time, as the demand of customers is satisfied, the firm lowers its price a bit attracting those who are more price sensitive. This strategy is useful when there are enough customers who are willing to buy the product at a high price, when the high price keeps competitors from entering the market, lowering the price won’t have a huge impact on…

The primary distinguishing factor between Penrose’s and Coase’s theories is the idea of fluidity – Coase believes the firm to be a static body with an optimum size, whereas Penrose views the firm as a dynamic entity that has no size limit, unless it fails to exploit its resources, at which point the firm becomes stagnant. Whilst Penrose defines the firm as an "autonomous administrative planning unit”, which is bounded by its “area of authoritative communication”, Coase perceives the firm as a…

The principle of competitive exclusion, also known as Gause’s principle, tells us that it is impossible for any two organisms to occupy the same niche without one of them going extinct (Hardin 1960; Gause 1934). This principle is easy to see in frugivores, grainivores, and carnivores that use discrete food packets, such as an insect or seed (Hanley 1982). MacArthur (1958) clearly demonstrated that each species is uniquely adapted to their niche and their competitive advantage prevents niche…

The Malthusian model of population and economic growth has two key components. First, there is a positive effect of the standard of living on the growth rate of population, resulting either from a purely biological effect of consumption on birth and death rates, or a behavioral response on the part of potential parents to their economic circumstances. Second, because of the existence of some fixed resource such as land, there is a negative feedback from the size of population to the standard of…

There are two types of Forex merchants: People who make money. Others. What separates them? It's not the brain or the knowledge. So many smart people are losing money in Forex trading. Often the problem lies in the mismanagement of money - which delays the loss of trades too much or generates profits too soon. Successful traders have long lost Forex currency trading in the three commandments of Forex Trading. The first commandment: Calculate the risk-reward ratio The first thing to consider in…

Oligopoly 3.4.1 Kinked Demand Curve Model Prof. Sweezy in his article published in 1939, presented the kinked demand curve analysis to explain price rigidities frequently observed in oligopolistic markets. Sweezy expects that if the oligopolistic firm brings down its price, its rivals will respond by matching that price cut in fear of losing their customers. Thus the firm which lowers its price will not be able to increase its demand. Therefore this portion of its demand curve is moderately…

Demographic transition is a demographic phenomenon that is characterized by changes in the population indicator of fertility and mortality from a high numbers towards a stable lower numbers. This phenomenon in the study of development is one of the alternative points of view to explain the development process, in addition to any other point of view that tends to emphasize the economic aspects, such as capitalism, industrialization, and the theory of modernity as the center of development process…

CASE BRIEF – TATA NANO DESCRIPTION Tata developed and started manufacturing Tata Nano, “the cheapest car in the world”, and has to decide the level of production capacity. Should Tata be conservative risking to cede market to competitors or should they make an aggressive commitment? EVALUATIONS Tata worked years to develop a ULCC (Ultra Low Cost Car) targeting the bottom end of the pyramid of the Indian population. The development of Tata Nano was based on 3 main targets: cost lower than Rs 1…