Supply and demand

In this case, each firm maximizes profit by paying K and L their marginal products, without offering any additional payment for their contribution to technological progress. Learning by doing formed the basis of the first model of endogenous growth theory, which is known as the AK model. The AK model assumes that when people accumulate capital, learning by doing generates technological progress that tends to raise the marginal product of capital, thus offsetting the tendency for the marginal…

Have you ever wondered how people with difference careers communicate and express how they feel about what they do, how they do it, or what impact they have in society and how it relates to our education? Experts from different fields might study and approach current issues. My issue is: poverty. First, we must understand what an Economist is. An Economist is a Social Scientist, expert in economics. According to “What is Economics”, economics is “the branch of knowledge concerned with the…

In his piece on poor support, David Ellwood argues that clashes/tensions between American values yield three helping conundrums. We want to know, which of these conundrums is most salient today and how might policymakers work to reduce the inherent value tensions? Ellwood mentions three helping conundrums. The first one is the Security-Work Conundrum. He argues that welfare can increase the security of the poor and can also reduce their motivation and likelihood to work. On the other hand, if…

I believe that the purpose of this bumper sticker is clearly to express corporate capitalism. It is, in my opinion, an argument of ethics, reasoning, or logos. Is it ethical, or reasonable, to allow a large corporation, such as coke, to control a larger part of our economic system than the people or government? Nothing to my knowledge provides a more accurate depiction of this problem than a bumper sticker using the iconic enjoy that Coke (a large, multinational conglomerate) so typically, and…

dealing with several countries which adds vulnerability. Aspects such as economic growth and interest rates are major components in this situation. Interest rates may significantly increase in some countries, causing prices to increase, and therefore, demand to decrease. Yet, if interest rates significantly decrease in these countries, more people will spend which will cause economic growth, and therefore result in inflation. With inflation, aspects such as unemployment may occur since prices…

The numerous social goals that intervention needs to be identified in order to decide the optimum level of government intervention. Two of the main objectives of government intervention identified are; equity and social efficiency. (Sloman & Wride 2009). Equity – If some people are living in great affluence while other people are living in poverty then it shows that they free market fails to lead to fair distribution of resources. The government should have a duty and role to redistribute…

Mission Statement Our original strategy was to focus on our traditional and low-end markets. We decided that all products needed to shift over time to be in line with traditional and low end consumer preferences. Our plan was to keep R&D and other costs as low as possible so that we could have low prices as part of a niche cost leader competitive strategy. We planned to increase automation for Cake and Cedar in order to lower production costs. We believed that our strategy would lead to a…

of labour supply, in future generations, caused by the low fertility rate. Before making the OCP an actual policy, the fertility rate in China was about five children per female; today, the rate is below the national average of 1.7 children per female (Eberstadt, 2007). The low fertility rate poses a concern for the supply of labour in the market. Graph 1 shows that a decrease in labour supply leads to rapid unemployment, price increases and a decrease in GDP. The long-run aggregate supply curve…

retailers can adjust the price dynamically as per its customers. Thus, seller can differentiate the pricings as per the willingness of the customer to pay. Personalized pricing also helps the estimate the market demand. It is very easy to use promotions on Internet and see how it alters the market demand. 2. Bundling creates “economics of aggregation” for the digital goods. Digital goods have low marginal cost (i.e. fixed cost of production but cheap to reproduce and distribute). These…

Imagine working 80 hours a week and still not having enough money to feed your family. Imagine sending your chidren to school in old second hand uniform. Imagine telling your children you could not afford for them to go out with their friends. For many families in Britain this has been the case since October 2014 when the amount of people on the minimum wage doubled. In 1998 the labour goverment introduced the National Minimum Wage which ensured that people over the age of 18 years old were…