The History Of Characteristics Of Monopolistic Competition Economics Essay

The History Of Characteristics Of Monopolistic Competition Economics Essay 1.0Introduction According to the Dominick Salvatore (2009 p.3) microeconomic theory is perhaps the most important course in all economics and business programs. With it we can answer or understand such question as why the price of gold rose sharply in few years; why the price of petrol rose dramatically in 2008s-2010s and declined in 2011s; why the price of sugar rose in few years; why the cereal rose in few years and others. By contrast, microeconomics is the study of individual house household or firms (business units). It focuses on particular parts of the economy. Microeconomics theory provides the tools for understanding how the other economies operate. 2.0 Introduction to Monopoly According to the Cambridge dictionary (second edition) monopoly in microeconomics mean is when a company or organization is the only one in an area of business or activity and has complete control of it. In market structure under the monopoly there is a single seller and large of buyers and selling products. It have no a high entry and the existence of barrier and have no close substitution to other vendors to enter into the market. Examples of products in monopoly market in our country are water, electricity and local telephone services. Our home telephone services are Telekom Malaysia (TM Berhad). Obviously, Telekom Malaysia is a monopoly in market. Through this it can let us know the meaning and reason causing monopoly. Besides that, it also know characteristic of monopoly and how affect or effect in market structure. 3.0 Characteristics of Monopoly 3.1.1 Single Firm Under the monopoly single seller is that the monopoly seller is the market. The market demand for a good is the demand for the output produced by the monopoly. 3.1.2 Barriers to Entry Barriers to entry is anything are designed which artificially to block or prevent the entry of firms entering a market profitably. There are some of the key barriers to entry are patents and copyrights, limit pricing, advertising, international trade restrictions and development expenditure. 3.1.3 Price Maker Single firm produces goods and have a monopoly in an entire market that means it holds a large majority of a stock. With having a large majority of a stock and a single firm makes a decision affect the price of an item in market. As a result, seller has full control over the market price. 3.1.4 Unique Product Single firm produces unique the product and no close substitutes for the product with each other. For example, there is presently no close substitute for Berita Harian, the only Malay language newspaper in Singapore. 4.0 Hypothetical Demand, Total Revenue, and Marginal Revenue Faced by a Monopolist Table 4.1 Hypothetical Demand, Total Revenue, and Marginal Revenue Faced by a Monopolist Figure 4.1 Hypothetical Demand and Marginal Revenue Curves of a Monopolist Since D is a negatively sloped, MR is lower than P. The MR values are plotted at the midpoint of each quantity interval. The MR curve starts at the same point as the D curve and at every point bisect the distance between D and the vertical axis. MR is positive when D is elastic. MR=0 when D is unitary elastic and TR is a maximum. MR is negative when D is inelastic. Table 4.2 Short-Run Total Cost, Marginal Cost, and Average Total Cost FIGURE 4.2 Short-Run Equilibrium of the Monopolist: Marginal Approach The best or optimum level of output of the monopolist is three units. This is given by point G, where MR=MC (and the MC curve intersects the MR curve from below). At Q=3, P=$6 (point A on the demand curve), ATC=$4.50 (point B on the ATC curve), and the monopolist earns $1.50 (AB) per unit of output sold and $4.50in total (shaded area ABCF). At Q MC and total profits rise by increasing Q. At Q>3, MC>MR and total profits rise by reducing Q. 5.0 Summary Characteristics of Monopoly are single firm, Barriers to entry high, unique product, power of firm over price and advertising. Single firm earns more profits in this type of market structure because no close substitute product to replace it. Barrier to entry is high because want to protect the single firm in market. A firm produces the unique products to avoid others firms to produce it. Monopolist has power to control prices of the product. Last, it consists of advertising in this type of market structure. 6.0 Introduction There are many types of market structures characteristics in which will affect the price and nature competition. For example, number of buyers and sellers, product differentiation, and the ease of entry into and exit from the market. Market structures refer to the competitive environment within which a firm operates. Market structures divided into four basic types which is perfect competition, monopolistic competition, oligopoly and monopoly. 7.0 Perfect Competition Perfect competition is a type of market in which there are large number of buyers and sellers. The sellers sell identical or homogeneous products. There is also free entry and exists of the firms. Both the sellers and buyers have perfect knowledge of the market. 7.1 Characteristics of Perfect Competition 7.1.1 There are many buyers and sellers of a commodity Reynolds, R. L., (2005, p.2) points out that the idealized perfect competitive insures that no buyers and sellers has any power or ability to influence the price. The perfect competitive market is price takers. Each buyer buys the commodity at the price determined by the market condition. 7.1.2 Homogeneous product The product of an industry in which the outputs of different firms are indistinguishable compare with another product. The homogeneous products are the product where the buyers could not differentiate the products of one seller to another seller. 7.1.3 Perfect knowledge In perfect competition firms, consumers and resource owners have perfect knowledge of all relevant prices and costs in market. No buyers to pay more a price of the product higher than the prevailing price. Similarly, sellers will not set or charge a price higher or lower than the prevailing price. Advertisement has no scope in this type of market. 7.1.4 Resources are perfect mobility This means that inputs or resources are free to move in market. Firms can enter or leave the industry in the long run without much difficultly. That is, there are no artificial barriers like copy rights and trademark or natural barriers such as huge capital requirements to entry into and exit from the industry. 7.2 Monopolistic Competition In monopolistic competitions there are contains many sellers but the products are differentiated. Many sellers produce products are similar but not identical. There are following features of monopolistic competition. 7.3 Characteristics of Monopolistic competition 7.3.1 Differentiated products Differentiated products are products that are similar but not identical and the products are close substitutes products with each other. Sellers cannot set their prices of the products very different from each other. In physical differentiation is through differences in design, material, color and others. Further differentiation of a particular product may be based entirely on some seller location of his shop, kind of service they provide and fair dealing. 7.3.2 Large number of firms Under monopolistic competition there is contains a big number of firms satisfying the market demand of the product. These firms do not produce perfect substitutes but the products which are relatively close substitute for each other. For instance, in soft drink industry, the prices for a can of 330 ml soft drink range among several brands on market today such as Pepsi, Sarsi and Cola-cola 7.3.3 No barriers to entry and exit Firms can also and leave a monopolistically competitive industry. The monopolistic element arises from product differentiation. For example, if à ¢Ã¢â€š ¬Ã‹Å"MASà ¢Ã¢â€š ¬Ã¢â€ž ¢ wants to become a company top 10 in international airline system, this firm must find some difference in term of quality of service or facility equipment are provided by the firm. 7.4 Oligopoly According to the Dominick Salvatore 5-edition Principles of Microeconomics (2009, p.330) oligopoly is the form of market organization in which there are few firms of a homogeneous or differentiated product. 3.5 Characteristics of Oligopoly 3.5.1 Few numbers of large firms The firms are few but the size of firms is large. Few firms control overall the market to ensure few number of large firms have a fair amount of market. For example of the oligopoly is Proton and Perodua. 3.5.2 Interdependence Each firm under the oligopoly is can affect the market, making each firmà ¢Ã¢â€š ¬Ã¢â€ž ¢s choices dependent on the choices of the other firms. So, they are interdependence. 3.5.3 Barriers to entry Oligopoly is meaning only few firms in the industry with barriers to the entry of new firms. Firms recognize their mutual dependence. 3.5.4 Advertising and selling costs The firms want to increase a greater share in the market and to maximize sale. So, this firm will expend more money on advertisement and other sale promotion. Advertising and selling cost are playing an important role in this type of market structure. 3.5.1 Homogeneous and differentiate products 3.5.2 Homogeneous Product Oligopoly . In market, industries produce intermediate products and sent to other different industries for manufacturing their products. For examples of the homogeneous products are steel and aluminum industries. 3.6.2 Differentiate Product Oligopoly Products manufactured in these markets are for personal consumption. For example of the differentiate product oligopoly is beer, breakfast cereals, detergents, soaps, computers and others. 3.7 Monopoly Monopoly is a single seller and sell the product is unique. Thus, in market structure there are many buyers and selling the product and there are no close substitutes with each other. For example that gave by Dominick Salvatore (2009, p.287) The Aluminum Company of America (Alcoa) is a classic example of how a monopoly was created and maintained for almost 50 years. The monopoly was created in the late nineteenth century when Alcoa acquired a patent on the method to remove oxygen from bauxite to obtain aluminum. 3.8 Characteristics of Monopoly 3.8.1 Singer seller in the market There are no close substitutes of the product in the market and no more other competitors in the market. Monopolist can control or affect price is evidence of its monopoly power. 3.8.2 Lack of competition Under the monopoly in market structure there are lacks of competition because there are no close substitute products in market. 4.0 Summary The characteristic of market which is classified as one of four market models are perfect competition, monopolistic competition, oligopoly and monopoly. Perfect competition consists of many sellers and buyers of a commodity, homogeneous products, perfect knowledge, and resources are perfect mobility and no ability to control over the price of a product. Monopolistic competition is involved a large number of firms, differentiated products, no barriers to entry and exit and using advertising to shift demand. Oligopoly which is consist a few number of large firms, interdependence, barriers to entry, advertising and selling costs and homogeneous and differentiate products. Last, monopoly includes of singer seller, lack of competition, unique product and imperfect knowledge. In question 2 the various characteristics between the four types of market structures which are Perfect Competition, Monopolistic Competition, Oligopoly and Monopoly have been discussed. These four types of market structure are different characteristics and it will affect the nature or artificial of competition and the price of the product. The figure 6 is shows about the differentiation of the characteristics of the following market structure. Market structure Perfect competition Monopolistic competition Oligopoly Monopoly Number of producers Many Many Few One Type of product Standardized Differentiated Standardized or differentiated Unique product Power of firm over price None Some Some Considerable Barriers to entry Low Low High Very high Non-price competition None Advertising and product differentiation Advertising and product differentiation Advertising Examples Parts of agriculture are reasonable close Pepsi Computer, oil Telekom

Death in Do Not Go Gentle, City Cafeteria, Death Shall Have no Dominion

Death in Do Not Go Gentle into That Good Night, City Cafeteria, And Death Shall Have no Dominion and Grandparents  Ã‚  Ã‚  Ã‚  Ã‚      Death is a highly personal event. It affects each of us differently. It affected Peter Kocan's man in the City Cafeteria by making him look empty and disoriented. It affected Dylan Thomas by making him think about what there was afterward, and what you could do to avoid it. Death even affected Robert Lowell by making him realise how much it changed his life. I, fortunately, seem to have avoided death in many ways, but also have been touched by it, even recently. While preparing for this essay, ironically, one of my family pets died. It was a chicken named Ellephante, which belonged to my younger sister. I didn't know what to think. I don't think, even now, several days later, that I feel the chicken has gone. I suppose I'm denying it. I constantly revisit, in my mind, the times I went into my back yard to be greeted with a flutter of wings and a white body racing down the hill to greet me. I imagine this feeling to be similar to the one expressed in Grandparents, by Robert Lowell. He feels, as he walks around the farm, which now belongs to him, certain pangs of loneliness, of missing his grandparents. Small things set him off - the gramophone and the billiard table with the coffee stain. Small things still set my sister off - going up to the chook shed to feed the remaining chooks, or looking out the window and not seeing that other white shape we came to know and love as Ellephante. Taken before its time (the next-door dog is undoubtably the culprit), I do not feel that Ellephante 'went gentle into that good night'. Ellephante was a feisty chicken, always very vocal and very affectionate and tame... ... I look to death as Dylan Thomas does - as a natural progression from life. I don't know quite what I believe in - some days it's reincarnation, some days it's a very scientific returning to a state of atoms in different forms, some days (when I'm upset) it's just being buried and then it stops, some days it's being taken from this world to another. I don't know that I believe in a Heaven or Hell, as such, but it's nice to think about it some times. Unlike so many people I know, I don't fear death - I used to, but I have come to accept it as an inevitable part of life, which everyone will have to face. I just know that when it's my time to depart, I want people to remember the good times and not to dwell on the bad. "It is as natural to die as to be born; and to a little infant, perhaps, the one is as painful as the other." Francis Bacon - 'Essays "Of Death"' Death in Do Not Go Gentle, City Cafeteria, Death Shall Have no Dominion Death in Do Not Go Gentle into That Good Night, City Cafeteria, And Death Shall Have no Dominion and Grandparents  Ã‚  Ã‚  Ã‚  Ã‚      Death is a highly personal event. It affects each of us differently. It affected Peter Kocan's man in the City Cafeteria by making him look empty and disoriented. It affected Dylan Thomas by making him think about what there was afterward, and what you could do to avoid it. Death even affected Robert Lowell by making him realise how much it changed his life. I, fortunately, seem to have avoided death in many ways, but also have been touched by it, even recently. While preparing for this essay, ironically, one of my family pets died. It was a chicken named Ellephante, which belonged to my younger sister. I didn't know what to think. I don't think, even now, several days later, that I feel the chicken has gone. I suppose I'm denying it. I constantly revisit, in my mind, the times I went into my back yard to be greeted with a flutter of wings and a white body racing down the hill to greet me. I imagine this feeling to be similar to the one expressed in Grandparents, by Robert Lowell. He feels, as he walks around the farm, which now belongs to him, certain pangs of loneliness, of missing his grandparents. Small things set him off - the gramophone and the billiard table with the coffee stain. Small things still set my sister off - going up to the chook shed to feed the remaining chooks, or looking out the window and not seeing that other white shape we came to know and love as Ellephante. Taken before its time (the next-door dog is undoubtably the culprit), I do not feel that Ellephante 'went gentle into that good night'. Ellephante was a feisty chicken, always very vocal and very affectionate and tame... ... I look to death as Dylan Thomas does - as a natural progression from life. I don't know quite what I believe in - some days it's reincarnation, some days it's a very scientific returning to a state of atoms in different forms, some days (when I'm upset) it's just being buried and then it stops, some days it's being taken from this world to another. I don't know that I believe in a Heaven or Hell, as such, but it's nice to think about it some times. Unlike so many people I know, I don't fear death - I used to, but I have come to accept it as an inevitable part of life, which everyone will have to face. I just know that when it's my time to depart, I want people to remember the good times and not to dwell on the bad. "It is as natural to die as to be born; and to a little infant, perhaps, the one is as painful as the other." Francis Bacon - 'Essays "Of Death"'

Saudi Arabian Earrings

Saudi Arabia is known for having a rich culture. This is one of the countries where traditional costumes, jewelries and ornaments still matter. Women in Saudi Arabia use earrings as part of their customary beliefs and cultural practices. And as such, Saudi Arabia’s market is being targeted for this purpose. Since earrings are used as ornaments in the Saudi Arabian culture, women are very sensitive and particular in choosing and buying the earrings that are appropriate for their culture. Aside from these, Saudi Arabian women spend a lot on jewelries and they are less particular of the price and quantity as long as the item satisfies their need for it. And since we are going to develop a product that aims to capture women's attention because of the use of timeless stones, worthy and affordable accessories, and creative and elegant designs, Saudi Arabia was chosen to be the target market of this product. Mass Marketing Since earrings are perceived as necessary products in Saudi Arabia, the item is subject to mass marketing. No particular group in the country will be targeted for the product, as such, this means that this product can be introduced to a larger market. Thus, as marketers we will make variety of designs for the customers. This product is expected to be patronized by females from different classes. We are going to produce earrings of different designs in order to capture the attention of women from upper and lower classes. Aside from women, men can also be a target market because they may purchase earrings as gifts to their female family members. Segmentation In developing a product, the common needs and wants of the market should be identified first (â€Å"Market Segmentation†). This product was planned to be distributed to Saudi Arabia based on psychographic segmentation. Saudi Arabia was targeted for the product because they share the same values and lifestyle. Because of that, it will be easier for us to distribute and sell our product to this country. Multiple Segment We will develop different versions of the product offering for each segment. Since mass marketing will be applied, it is important that the product will have variety of designs. The upper class may buy the earrings with a larger stone but the customers who belong to lower class would refer to buy earrings with the most affordable price (â€Å"Market Segmentation†). For Bedouin women, we will create earrings that will be suitable for their social and economical status while some designs will be intended for married women (Ross). Other earrings will be designed for some Saudi Arabian traditions such as dowry and gifts for special occasions. Positioning It is indeed true there are a lot of competitors in the market. The product to be endorsed is no longer new in the market because a lot of manufacturers have also developed this kind of product. Yet, in order to be ahead of the competition, we would create a unique selling proposition so that the customers will buy the product instead of the others’. We will endorse this product not only as symbol of their culture and beliefs but also as a fashion trend. Our product has an elegant style which can be used in all occasions and events. Aside from that, the advertisement would highlight how the product was carefully designed especially for the women of Saudi Arabia. We created a lot of styles so that the customers can choose from variety of designs of the product. As such, in order to fully capture the interest of the target market and to entice them into patronizing our product, we must be able to identify our products with our selected target markets (Pezzullo 142). Target Concentrated. Although the mass marketing was applied and the product was created with different designs, the earrings will be distributed only in this country. We will concentrate on distributing and creating earrings for the target market only for the mere reason that the product was exclusively made for Saudi Arabian women. Through this strategy of specializing our product, the distribution and promotional tactics, our limited resources will be utilized in order to attain the highest level of benefits that can be gained from it (Pezzullo 142).

The Lewis And Clark The Land Of The United States

Before the expeditions of todays well known Lewis and Clark, the entire western end of the United States was uncharted territory consisting of new peoples and surroundings waiting to be discovered. A member of this team included John Colter , who is an unknown person to most historians. Colter was an important piece of this group, and though he did not stay with Lewis and Clark during the entirety of two years, from May 1804 to September 1806, he was an essential component of their travels. While Lewis and Clark have been recognized with pioneering the lands in the Louisiana Purchase during the 1800s, no recognition has been awarded to John Colter, a member of the Lewis and Clark Expedition . Colter deserves attention for locating the†¦show more content†¦Since they had so many men, they could all split up into small groups to cover more ground to be able to document it for Jefferson and the rest of the United States. Colter unfortunately showed another side to himself a few weeks after the group set off. Sergeant John Ordway was given command while Lewis and Clark left to finalize their supplies needed for the journey. Colter disobeyed Ordway’s orders and was also court-martialed for threatening to shoot Ordway. Colter improved his attitude and they kept pushing forward and soon met one of the first Native American tribes during the winter of 1804-1805. This tribe was Mandan’s and they did not turn to violence against their the group and actually let them stay for the entirety of the harsh winter. During the two years journey, Colter was also given the title of the group’s best hunter and trapper, keeping the men healthy by being able to provide game. The men explored much of the lower Rocky Mountains and most of present-day Montana, Oregon, and North Dakota. They also became the first white American men to reach the Pacific Ocean in 1805. There they built Fort Clatsop because of the neighboring Indian tribe. The Corps of Disco very , aka the Lewis and Clark Expedition, befriended dozens of Indian tribes who helped them along their journey. Without these tribes the party would’ve died of starvation or from the extreme weather conditions,