Maximazing Profit Essay Example

Maximazing Profit Paper Assignment: Maximizing Profits in Market Structures Paper XECO/212 University of Phoenix The structure of a market is defined by the number of firms in the market, the existence or otherwise of barriers to entry of new firms, and the interdependence among firms in determining pricing and output to maximize profits. This paper covers the following: the advantages and limitation of supply and demand, the characteristics of each market structure, the barriers to entry and how organizations in each market structure maximize profits. Markets are the heart and soul of a capitalist economy, and varying degrees of competition lead to different market structures, with differing implications for the outcomes of the market place. The goal of a firm is to maximize profits, to get as much for the firm as possible. In the perfect competition, each firm maximizes profits where marginal revenue (MR) equals marginal cost (MC). That is, the additional revenue from producing additional quantity equals the additional cost incurred in producing that quantity. At an output where MR is greater than MC, increasing production increases profits. If MR is less than MC, decreasing production increases profits. Therefore, MR=MC is the profit-maximization condition. In perfect completion, the price is a given for each firm, P=MR. This is because the fixed price per unit is the additional revenue the firm can expect to earn by selling additional quantity. The firm’s profit- maximization condition becomes P=MR=MC. In the long run, however, all costs are variable. We will write a custom essay sample on Maximazing Profit specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on Maximazing Profit specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on Maximazing Profit specifically for you FOR ONLY $16.38 $13.9/page Hire Writer All firms in a perfectly competitive market make zero economic profit in the long run, because if profit was being made, more firms would enter the market and market prices would decline until all firms made zero profit. These elements are perfect competition, monopolistic competition, oligopoly,  and monopoly. Based on the differing outcomes of different market structures, economists consider some market structures more desirable, from the point of view of the society, than others. Each of these market structures describe a particular organization of a market in which ertain key characteristics differ. The characteristics are: (a) number of firms in the market, (b) control over the price of the relevant product, (c) type of the product sold in the market, (d) barriers to new firms entering the market, and (e) existence of non-price competition in the market. The number of firms in the market supplying the particular product under consideration forms an important basis for classify ing market structures. The number of firms in an industry, according to economists, determines the extent of competition in the industry. Both in perfect competition and monopolistic competition, there are large numbers of firms or suppliers. Each of these firms supplies only a small portion of the total output for the industry. In oligopoly, there are only a few (presumably more than two) suppliers of the product. When there are only two sellers of the product, the market structure is often called duopoly. Monopoly is the extreme case where there is only one seller of the product in the market. The extent to which an individual firm exercises control over the price of the product it sells is another important characteristic of a market structure. Under perfect competition, an individual firm has no control over the price of the product it sells. A firm under monopolistic competition or oligopoly has some control over the price of the product it sells. Finally, a monopoly firm is deemed to have considerable control over the price of its product. The type of products sold in the market is also a key characteristic. The extent to which products of different firms in the industry can be differentiated is also a characteristic that is used in classifying market structures. Under perfect competition, all firms in the industry sell identical products. In other words, no firm can differentiate its product from those of other firms in the industry. There is some product differentiation under monopolistic competition—the firms in the industry are assumed to produce somewhat different products. Under an oligopolistic market structure, firms may produce differentiated or identical products. Finally, in the case of a monopoly, product differentiation is not truly an issue, as there is only one firm—there are no other firms from whom it should differentiate its product. The barriers to entry need to be accounted for while classifying the characteristics of a market structure. The difficulty or ease with which new firms can enter the market for a product is also a characteristic of market structures. New firms can enter market structures classified as perfect competition or monopolistic competition relatively easily. In these cases, barriers to entry are considered low, as only a small investment may be required to enter the market. In oligopoly, barriers to entry is considered very high—huge amounts of investment, determined by the very nature of the product and the production process, are needed to enter these markets. Once again, monopoly constitutes the extreme case where the entry of new firms is blocked, usually by law. If for whatever reasons, new firms are allowed to enter a monopolistic market structure, it can no longer be termed a monopoly. Market structures also differ to the extent that firms in industry compete with each other on the basis of non-price factors, such as, differences in product characteristics and advertising. There is no non-price competition under perfect competition. Firms under monopolistic competition make considerable use of instruments of non-price competition. Oligopolistic firms also make heavy use of non-price competition. Finally, while a monopolist also utilizes instruments of non-price competition, such as advertising, these are not designed to compete with other firms, as there are no other firms in the monopolists industry. Perfect competition is an idealized version of market structure that provides a foundation for understanding how markets work in a capitalist economy. The other market structures can also be understood better when perfect competition is used as a standard of reference. Even so, perfect competition is not ordinarily well understood by the general public. For example, when business people speak of intense competition in the market for a product, they are, in all likelihood, referring to rival suppliers, about whom they have quite a bit of information. However, when economists refer to perfect competition, they are particularly referring to the impersonal nature of this market structure. The impersonality of the market organization is due to the existence of a large number of suppliers of the product—there are so many suppliers in the industry that no firm views another supplier as a competitor. Thus, the competition under perfect competition is impersonal. Perfect competition is considered desirable for society for at least two reasons. First, the price charged to individuals equals the marginal cost of production to each firm. In other words, one can say sellers charge buyers a reasonable or fair price. Second, in general, output produced under a perfectly competitive market structure is larger than other market organizations. Thus, perfect competition becomes desirable also for the amount of the product supplied to consumers as a whole. Monopoly can be considered the opposite of perfect competition. In the monopoly, there are no price takers a monopolist sets the price for the product or service to maximize profits. The profit-maximizing price and output is at the point where MC=MR. The output is less than what it is in the perfect competition. In the long run, it is possible for a monopolist to earn some economic profits, if to entry of new firms exist. The concept of monopoly arises when one firm is the sole producer and marketer of a product or service. Monopolies come in being when a single firm is the sole producer of a product that has no close substitutes. Monopolies are characterized by a single seller, no close substitutes, price maker, blocked entry and non price competition. In the oligopoly, there are few firms, pricing and output decisions are strategic; that is each firm considers the reaction of the other firms while taking any decision. An important characteristic of an oligopolistic market structure is the interdependence of firms in the industry. The interdependence, actual or perceived, arises from the small number of firms in the industry. If an oligopolistic firm changes its price or output, it has perceptible effects on the sales and profits of its competitors in the industry. Thus, an oligopolist firm always considers the reactions of its rivals in formulating its pricing or output decisions. The prices set by all firms are nearly identical, because any effort to change the price by one firm will induce other firms to follow suit. For this reason, prices, once fixed, tend to change very little in oligopoly. Firms in oligopoly can expect to make some profit in the long run. An oligopolistic industry is also typically characterized by economies of scale. Economies of scale in production imply that as the level of production rises, the cost per unit of product falls for the use of any plant. Thus, economies of scale lead to an obvious advantage for a large producer. In the monopolistic competition, there are many buyers and sellers, and there are few barriers to the entry of new firms. Each firm, however, sells differentiated products, and invests considerably in differentiating it products from the competition. The profits of each are maximized at the point where MR=MC. In the long run, however, the free entry and exit of firms means that all firms earn zero economic profit. As in the case of perfect competition, a firm under monopolistic competition decides about the quantity of the product produced on the basis of the profit maximization principle—it produces the quantity that maximizes the firms profit. Also, conditions of profit maximization remain the same—the firm stops production where marginal revenue equals marginal cost of production. But unlike perfect competition, a firm under monopolistic competition has some control over the price it charges, as the firm differentiates its products from those of others. However, this price making power of a monopolistically competitive firm is rather small, since there are a large number of other firms in the industry with somewhat similar products. REFERENCE Colander, D. C. , (2004). Economics, 5th edition. Irwin/McGraw-Hill, Burr Ridge, Il. Chapter 13. Retrieved November 23, 2009. Forgang, William G. , Einolf, Karl W. (2006). Management Economics: An Accelerated Approach. M. E. Sharpe Competition (2007). Encyclopedia of Business, 2nd Edition. Retrieved on November 23, 2009 from Encyclopedia of Business, Clo-con website: http://www. referenceforbusiness. com/encyclopedia/Clo-Con/Competition. html

Parents essays

Parents essays Its eleven o clock and even though you are only five minutes away from home, you know that as soon as you walk through the door your parents will act as if you have come home 3 hours late. As you enter the front door you are greeted with the expected I can't believe you broke curfew again. It seems that you have once again found yourself incapable of making your parents happy. There are many things about most adults that bother me: How they assume they know how you feel, the way they pry into your private lives when they think you are lying, the way they think they are more capable of making decisions for you. Today most adults have forgotten what it is like to be a child. And as a result, have developed into a spitting image of how their parents were with them. I'm not sure if it is the times that have changed or if my parents do not remember what it is like to be a teenager. Teenagers are under more stress than any other age of people in the world, especially those who are seniors. I myself am a senior in high school, which by itself is a big responsibility. There are so many things that are stressful about your senior year like grades, test scores, and graduating that sometimes the little things just get put off for a while. I'm not sure why our parents get so bent out of shape when this happens. I mean come on, who can remember to clean and keep their room spotless when they are trying to decide what they want to do for the rest of their lives or where they are going to go to college. Jobs are another huge stress on me as a teenager. Teenagers are probably the most expensive things in the world. We need the latest clothes, cars, insurance, and of course food. Parents should not put the full responsibilities on their children to find a job so they can pay for all those things on their own. It is not possible for someone to perform their best in school or get their homework completed when they to work every nigh...

How to Use Mock Interviews to Prep for the Real Thing

How to Use Mock Interviews to Prep for the Real Thing A mock interview is a simulation of a job interview, and can be an extremely useful tool in job searching and preparation. Mock interviews help you practice delivering your prepared answers to some expected questions, so you have some experience saying your answers out loud and have a chance to work out some kinks. It also gives you a little bit of comfort and confidence with the interview format. How to Set One UpFirst step is to see if your college career center has a program in place- whether for in person, online, or video chat mock interviews. If not, there are a number of online programs that perform this service- and might be worth trying. The more professional and realistic the mock interview (i.e. the less personal or casual ) the better. Extra points if your mock interviewer can give you a really clear-eyed critique.If you can’t find a professional, you can always ask a trusted friend, colleague, or family member. Make it clear that you’d like them to be as co ld and harsh as possible to simulate the real thing. The more you practice now, the more confident and at ease you’ll be during the real thing.How to PrepPrepare just as you would for a normal interview. Bring your materials (even if you’re just Skyping someone; it’s good practice to go through the routine). Dress smartly. Be in place and ready 10  minutes early. Be positive. Smile when you speak. Address your interviewer by name and make eye contact. Bring a notebook to take notes, where appropriate.Questions to IncludeNow the questions. Here are a few of the most popular questions that might be asked in a mock interview situation. Usually these are the sorts of questions that get asked in first-round or screening interviews by companies or HR departments. Start preparing your answers to these, and other questions, and then start practicing!â€Å"Why should we hire you?†Here you should make a point of emphasizing the skills and experience you have that are most relevant to the job you’re applying for. Show them how you fill a gap, or solve a problem that is important to them. What can you give them that the other interviewees cannot?â€Å"What are your weaknesses?†Pivot as much as possible to focus on your strengths, but do take the time to come up with a thoughtful answer to this. Interviewers can see through b.s.â€Å"Why do you want this job?†Why do you want to work at this company? How does it fit with your strengths and what you’re passionate about?â€Å"What are your career goals?†Careful not to make it clear you want to use this job as a stepping stone, but also don’t neglect to show your ambition in the field. It’s a bit of a balancing act, so good thing you’re getting a chance to practice.â€Å"Tell us about your past jobs.†Questions about what you liked or were satisfied by and questions about what you hated/why you left are to be expected. The trick is to g ive your interviewer a sense of what motivates you.Remember to treat your mock or practice interview like the real thing. The realer it is, the better prepared you’ll be once you’re in the actual interview room, ready to win the job.

Communication theory 3-4 Essay Example | Topics and Well Written Essays - 1000 words

Communication theory 3-4 - Essay Example Through the times, the focus has expanded to construct meanings of the world within which one lives. Thus, rhetoric not only promotes wider understanding of issues and events around oneself but they also serve dual purpose of giving ideas to people and people to ideas for widening the scope of understanding. Rhetoric involves rhetor who uses symbols for communicating with public under different situations and constraints. It has developed over the time to encompass different elements of human interaction and provide one with distinct symbolic construction of ideas. Classical, medieval, renaissance, contemporary and post-modern are important historical period that have witnessed evolution of rhetoric to its present form. Classical era from 5th to 1st BC was started by sophists who defined and codified art of rhetoric. It was later compiled by Aristotle and further refined by Romans and Greeks. Medieval rhetoric was mostly recognized as pagan art of persuasion that went against the Chr istian doctrine. Augustine revitalized rhetoric to be used by preachers which made it easy for them to teach. During Renaissance period (1300-1600 AD), rhetoric was seen as important way of constructing meaningful language and through it to understand the world. Language as a medium was recognized as critical vehicle of rhetoric and showed the powers of the words and symbols. In the age of Enlightenment, rhetoric was used for rationalization. Great thinkers like Descartes, Francis Bacon etc. used it investigate the working of mind and role of imagination in perceiving things and events. Thus, knowledge was differentiated from the language which had just become a tool to disseminate information about the truth and provided language with distinct style of communication. It was used in letter writing and different formats of literature like poem etc. This also limited the role of rhetoric and provided it with negative connotations. During contemporary and post-modern period, rhetoric b ecame vital link of communicating in public. It was an art that provided orator with myriad symbols to emphasize dialogues and effectively communicate ideas. It was also reassessed and used to understand the world at large and helped provide different perspectives for critical thinking. The post-modern rhetoric was significant in understanding the experiences of life through the broader understanding of race, gender, culture, class and sexuality. Queer theory is interesting because it helps to understand the nuances of public speakers that make public speech more complex that require deeper knowledge to decipher the meanings of words. The alternative rhetoric based on race and culture identity like AfroAmerican, Asiacentric, Aborginals etc. are important post-modern uses of rhetoric that expand its scope and emphasize role of symbols in communication. Communication theory of identity Communication theory of identity explores personal identity with reference to one’s surroundi ng. Specific identity within the broader societal framework is one of the most important aspecst of human race that facilitates its interaction and promotes relationship building. The social identity provides individual with a distinct characteristic that helps to establish social status, thus representing him/her physically in the world. Moreover, it also contributes to a knowledge base that others can instantly access to have a general idea about

Data Presentations Essay Example | Topics and Well Written Essays - 1500 words

Data Presentations - Essay Example The economy, the social life and the satisfaction with life can be estimated using the statistical analysis of the corresponding data. The analysis permits to find the mean value of the parameter and to estimate whether the difference between the mean value and the particular measurement is due to the effect of the certain factor or whether it is within the confidence limit for the estimated parameter. The statistical analysis permits also to estimate the hidden trends and relationship between the parameters (Mendenhall, Beaver and Beaver, 2013). The aim of this analysis is to estimate the parameters related to the economy, demography and social life of the countries. The data from 100 counties represents the information about the following indices: average lifespan, average number of people per household, median household income and average number of people per household. The provided data permits to estimate each parameter, as well as the relationship between them. The analysis is started from the estimation of each variable. The Data Toolkit in Excel is used for this purpose. To obtain the descriptive statistics for each parameter the option â€Å"Descriptive Statistics† is chosen in the Data Toolkit. The obtained table provides information about the mean, median, mode, range and other main parameters of the descriptive statistics (Anderson, Sweeney, Williams, Camm and Cochrane, 2015). The information and its analysis are given below. The descriptive statistics for the median household income shows that there is a significant difference between maximum and minimum value of this index. The minimum value is more the two times less from the maximum value. The data is distributed symmetrically because the mean and the median are very close and the skewness is comparatively small. It can be assumed that the data is normally distributed (Mendenhall, Beaver and Beaver, 2013). The main feature of the data is the large difference

Is friar Lawrence to blame Essay Example for Free

Is friar Lawrence to blame Essay Friar Lawrence is the local Roman Catholic priest who is also an apothecary. He is the confident of both Romeo and Juliet and plays an important role in the fate of both. He is more than aware of the familys feuding and seems to be well thought of by everybody. Romeo respects Friar Lawrence very much and sees him as a father figure. When Romeo feels suicidal when he has just been banished from Verona, the Friar tells him to straighten up. `This is dear mercy, and thou seest it not. ` When Romeo confesses that he wants to marry Juliet, Friar Lawrence teases Romeo about how fickle in love he is. `Is Rosaline, that thou didst love so dear, So soon forsaken? ` But in spite of this he still agrees to marry the young couple as he hopes it will end the familys feuding. `For this alliance may so happy prove, To turn your households rancour to pure love. ` He only agreed to it because he had their best interests at heart. I dont think he is to blame for marrying them as he did what he thought was right. And even if Friar Lawrence hadnt married them, whos to say that another Friar wouldnt have married them? Romeo and Juliet both feel as if they can turn to him when they are in trouble. We see this when Romeo has been banished, because he stabbed Tybalt and Juliet has been told that she must marry Paris. Romeo doesnt seem as if he is very close to either of his parents but Juliet usually has her nurse to turn to, but even the nurse, in the end the nurse rejects her too. `I think it best u married with the county. ` So in desperation each one goes to Friar Lawrence for help. Romeo is helped by being giving him a hide out in Mantua until Juliet can meet him. Juliet, being ordered to marry Paris, has gone to Friar Lawrence in desperation and has asked for help. First of all the Friar has to help Romeo escape. He allows Romeo to spend one night with Juliet, but before dawn he must leave. It is at this time that Juliet has been told to marry Paris. So she goes to the Friar. Friar Lawrence then devises a plan that will ensure Juliet and Romeos happiness. In some ways this shows us the Friars cunning, we are also shown that he is quite a smart man. We know that the friar is also an apothecary, so he gives Juliet a potion, which will make Juliet look as if she is dead. When she is taken to the family tomb, the friar will wait until she awakens, and by which time Romeo will hopefully already be there and take Juliet away. While devising this plan he still has the families interests at heart. He is only doing this in the hope that the two families, Montague and Capulet will reconcile. Although it could be argued, that he only helped them because he wanted to save himself. I personally dont think so. I think he would have known that he would have had to `cover his tracks` before he married the couple. He seems like a prudent man, one that will think things through; he would never have married them and helped them elope for selfish reasons. But the Friar did deceive both the Capulet and Montague parents. And although this was wrong, it was also, in my opinion justified. I think this because he didnt really have much choice. If he had wanted to succeed with his plan then they would have had to be kept in the dark, there was no other way round it. If they had been told, neither parent would have agreed to let their child associate with the child of the enemy. Priests do have the best interests of their parishes at heart and they do not lie and deceive people needlessly, but I think in this case it was allowed. Even though everything didnt turn out the way it should have, it achieved the one thing the Friar wanted: peace between the families. And although the price paid was very high, almost too high, the motivation was honourable he genuinely didnt act selfishly. I think everyone, in the play recognised this including the prince. `We still have known thee for a holy man. ` Friar Lawrence really was a decent man, even if his plans did go slightly wrong.

Law and Order in the First Part of the Nineteenth Century :: Papers

Law and Order in the First Part of the Nineteenth Century In the first part of the nineteenth century crime was one of the biggest social problems. Crime was made worse by widespread poverty, many people wanted proper law enforcement. May crimes were punishable by death, so the criminals adopted the phase â€Å"better to be hung for a sheep than a lamb†. When Sir Robert Peel became Home Secretary in 1825, he made a properly organised police system his propriety. Up to now towns had only their caped night watchmen, with warning bells and rattles. Peel’s major concern was preventing crime rather than punishing it. For this reason, in 1829 he established the first regular police force. Large towns such as London were often particularly lawless, and authorities often used troops to keep the peace, which was a much-hated practice. In 1829 Peel established a regular police force in London and the suburbs. At first there were 300 ‘Bobbies’ recruited and controlled by the Home Office. Their presence soon forced many criminals of the capital. Finally in 1856 every county and borough had to maintain a police force. The Metropolitan police force had many different duties. The man on the beat was there to stop disorderly behaviour. So this meant the Metropolitan Police Force were to deal with beggars, drunkenness, vagrants and prostitutes. In the second half of the nineteenth centuary London’s streets became more orderly, but as a consequence of this the number of burglaries went up. Another of the Metropolitan Police Forces duties was to deal with major disturbances. Police constables received very little training in the late nineteenth century and often learnt their trade â€Å" on the job†. Police constables worked seven days a week and up to fourteen hours a day. In London in the 1870’s and 1880’s, a beat during daytime was seven and a half miles long whilst at night it was two miles. Pick pocketing was rife in London in the late nineteenth century. Pickpockets were generally around the age of 6-10 years old and had