In a free market economy there is interaction of demand and supply forces to bring about equilibrium in the in the market. The paper will attempt to highlight economic systems; forces of demand and supply; economic issues in the wall street journal and finally a brief conclusion…
Download file to see previous pages...
The paper has examined how market functions depending on the structure it adopts. Scarcity is a state where wants exceeds available resources while an opportunity cost is the foregone alternative that is actually the cost of what is chosen. An allocative efficiency is a situation where resources are utilized without waste. Cost-benefit analysis is where resources are selected on basis benefit as weighed against costs. A resource is any asset that will satisfy human wants. An economic problem arises due to availability of insufficient resources to satisfy all unlimited human needs. The challenge then is how to establish products and to allocate the factors of production of land, labor capital and entrepreneurship to attain maximum production, when is to produce and for whom. This scarcity necessitates the need for consumers to make a choice to satisfy their demand due to their limited incomes. Different economic models place choice in various economic systems. The figure below offers a typical example of an opportunity cost. Assuming that a country produces only two goods, A and B, it has to make a choice in the allocation of resources to attain maximum production efficiency and to achieve maximum utility.
Different economic models place choice in various economic systems. The figure below offers a typical example of an opportunity cost. Assuming that a country produces only two goods, A and B, it has to make a choice in the allocation of resources to attain maximum production efficiency and to achieve maximum utility. Fig 1 Production Possibility Frontier (ppf) Possibility Frontier (ppf) Capital Goods A M E A K 0 N B Consumer goods Consumer goods The curve AB can be attained if the resources employed in production are efficiently utilized with the existing state of technology. Suppose country X decides to produce only two goods: Capital goods and consumer goods as shown on the ppf AB. If it decides to produce (OA) units of A, it will have zero OB units of A. Thus OA goods are the opportunity cost of OB goods. Occasionally, country X will allocate resources to produce little of OA and OB to maximize utility as depicted at E. In real life situations, people will have to make choices between two competing alternatives. For instance, students making choices on either continuing with studies or earning, consumers to choose good A at the expense of good B or vice versa. One alternative becomes an opportunity cost for the other. Various Economic Systems Economic systems are mechanisms through which an economy works. For instance, there is socialism in which policies regarding allocation, production and distribution are left in the hand of producers and government. Others are capitalism, communism and mixed economy which functions differently. Goals of Microeconomics Micro-economics analyzes market failure, describes theoretical conditions related to perfect conditions and how these anomalies can be corrected. The theory of demand and supply
...Download file to see next pagesRead More
Cite this document
(“How Markets Functions Essay Example | Topics and Well Written Essays - 1500 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1433816-how-markets-functions
(How Markets Functions Essay Example | Topics and Well Written Essays - 1500 Words)
“How Markets Functions Essay Example | Topics and Well Written Essays - 1500 Words”, n.d. https://studentshare.org/macro-microeconomics/1433816-how-markets-functions.
In his writing, Cassidy argues that in any market system, there are unseen variables that ruin the performances of commercial businesses (402). These variables include the hidden information, moral hazard and human emotion. He claims that these concepts curtail the effort of the traders, home sellers, bankers and regulators.
channel appears to be more efficient for the company described. Marketing Functions Channel of distribution is one of the functions of marketing that require different stages of evaluation and decision making strategies to ensure that products and services of business organizations reach their target markets.
As the airline industry is characterized by high investments and fixed costs and considered to be a low frill economics (Homa, 2012), effective strategies for managing supply-demand determines the profits to a large extent as well as the competitive advantage (Knorr and Zigova, 2004).
Numerous markets often emerge; thus, there is a need for regulation of different aspects of emerging and existing markets.
The perfect way to understand how markets create reforms to authorities is to examine the decentralization of businesses or markets.
This paper will define what financial markets and institutions are and their implication in an economy particularly in a largely consolidating world market.
Financial markets "consist of agents, brokers, institutions, and intermediaries transacting purchases and sales of securities." The individuals and institutions operating in the financial markets are linked by contracts and communications networks that form an externally visible financial structure, laws, and friendships.
Another goal of Public Relations is to create positive public interest on the company and its products or ideas by presenting and highlighting all favorable aspects of the organization.
The mass media is the main vehicle of Public Relations. The development and proliferation of the different forms of mass media gave way to more progressive and far-reaching Public Relations campaigns because more people gained access to information.
In the last few years, these fees have even out shadowed the revenue that was being earned by these airlines from heavy baggage that consumers carried to the airlines. The revenue earned by AMR, was $116 Million, as compared to the revenue earned from
keting Association said that “Marketing is the activity, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large” (American Marketing Association, n.d.).
The creative Mind’s human resource base is medium and employees freely interact with the groups towards completing the organization’s projects. The organization has been consistently appraising its employees twice a year and a new appraisal strategy, the 360- Degree Feedback system, has been proposed.
A high school diploma and at least two years of higher education can work toward guaranteeing that an individual is well-equipped to handle the strain that comes with the task of being an officer. In defense of the above educational requirements, the
Human resource department is an intermediate between employees and management. Employees can access all information they need about the company from this department. Functions by the human resource is a key department and should be handled with great keenness and
2 Pages(500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic How Markets Functions for FREE!