This Perfect Day

“Man is an animal that makes bargains (or exchanges): no other animal does this - no dog exchanges bones with another”. (Smith, A. (n.d.) Whether man is an animal or better described as a creature, notwithstanding, it can easily be said, even taken as an axiom that humans are actors in the economy. Even Robinson Crusoe on his little island maybe described as an economic actor in so far as he is motivated to behave based on factors such as scarcity, choice and cost. It has been said that “man…

Therefore, this game suggests the simultaneous moves. The graph below represents a part of the game (as we mentioned, there is an infinite number of possible moves and combinations, therefore, it is impossible to present all of them on the graph), where the firms…

Very little or no product differentiation as well as good communication and co-ordination possibilities due to few players in the bearing industry lead to perfect conditions to collude in a cartel. Firms mentioned in our case deliver to the market highly technologically advanced products, which make the entrance for new companies even harder. This resulted in a cartel to ensure stability in the demand and costs as well as predictability of profits. These companies agreed on fixed prices, fixed…

had established a new company transformation strategy called Renew Blue. This was implemented in 2012 when the new CEO Hubert Jolly began his career at Best Buy. Renew Blue Transformation In November 2012, Best Buy’s organization sat down to try to diagnose there main two issues; declining store sales and shrinking profit margins. Best Buy decided the best way to move forward was to incorporate corporate diversification. This strategies main objective is to promote growth in 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 consequently presupposes a utility-maximizing rational mind-set (Hermann, 2015). In line with this assumption, it is argued that the time devoted to domestic and care…

price of goods and services. The company, price leader, is often larger than other companies. Price leader determines the prices and other competitors have no alternative, need to lower their prices in order to compete and remain the market share. This type of pricing strategies is common in the oligopolies, which means fewer sellers in a market, for example oil companies, airline industry. Price leadership usually happens when there is no highly differentiation of the products. It is because…

they want to sell to and receive all the profits. Monopolies and advertising go hand in hand. Advertising is what transforms a company into a monopoly. This then affects what people think they want and need. Thus, monopolies are what we consider as the leading companies and they are the ones who control most of the media shown to the public, this can either be benefiting or unsatisfactory, depends on who you are. Monopolies are what form unfair fields for advertising. A spectator will trust a…

company, the Mega-Big Corporation. If this merger proceeds as planned, then the Mega-Big Corporation will control over 80 percent of the market share in Brazil. With such a large market share, the Mega-Big Corporation would be considered a monopoly of the sugar market. In the discussion that follows, pros and cons of the merger will be discussed. It will then be up to the government to decide whether or not to intervene in this merger. The only entity in this situation that may actually…

Industry and the organization As part of this project, we have selected the consumer apparel and footwear industry, which is represented by Nike Inc. About the company Nike Inc. is an American multinational corporation that designs, develops and markets sports footwear, apparel and accessories under its brand name. The company was founded in the year 1964 as Blue Ribbon Inc. , but was then named as Nike Inc. in 1970. The company is listed on New York Stock Exchange, under the ticker symbol of…

markets are imperfect competition with each other. This means that a company does not have enough market power to control the quantity or price of a good. The second assumption is that the outcome of what happens to the market only matters to who is participating in the market. If the market has side effects on a third party these are called externalities. Depending on these externalities the welfare of the market activity can change especially…