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Exam paper---read the requirement I send you carefully - Essay Example

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Exam paper-read the requirement I send you carefully Contents Contents 2 Introduction 3 Response of a perfect market to changes in consumer demand 3 Differences between perfect market and monopoly market 7 Conclusion 9 References 11 Introduction The market structures in the economy vary with the level of competition and concentration…
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Exam paper---read the requirement I send you carefully
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Exam paper---read the requirement I send you carefully

Download file to see previous pages... Due to increased competition in a perfect market, the bargaining power of the consumers is very high. The market trends are thus required to be followed by the companies in a market that is perfectly competitive. The price of products and services in a monopoly market is determined by the single player which also takes the government regulations into account. The products in a perfect market could not be differentiated as the products could replace each other. The products in a monopoly market could be differentiated and it is not possible to replace the products in a monopoly market. Response of a perfect market to changes in consumer demand A perfect market is a market that has the highest competition and is less concentrated. This means that the market is driven by a number of competitors which increases the level of competition for delivering products and services to the customers. The changes in the demand and its effects on the changes in price in a perfect market have been explained as follows. In a perfect market, the demand curve is perfectly elastic. This means that any further change in price will result in demand falling to zero (Mankiw, 2011, p.37). Thus a perfect market is represented by a horizontal demand line with the benchmark price remaining constant for the quantity demanded. ...
Such an ideal condition is difficult to obtain under practical conditions. For a change in the consumer demand in a perfect market, the response of the market could be explained in the short term period as well as the long term period. In the short term period, a rise in the demand level of the products against the prevailing supply will increase the price of the products and services. The increase in demand over a short term period is represented by the green line over the dotted line. A rise in price of the products and services over the prevailing cost would provide the companies with economic profits (Hall and Lieberman, 2007, p.108). The rise in the economic profits of the business would be supported by the revenues earned from the market. This is well supported by the economic theory of supply and demand and is explained by the graphical representation given below. “MC” and “ATC” are the marginal cost and the average respectively, “P” is the price which exceeds the cost as a revenue driver. An example of the demand of coffee in a perfect market could be used to explain the market response. A rise in demand of coffee in the market against the prevailing supply would force the coffee firms to raise the prices which would provide them short term economic profits which are, however, not sustainable in the long run as the competition level would tend to bring down the prices very soon. The response of a perfect in the long run with the changes in demand level is explained by the graphical representation given below. With time, the number of firms in the market would increase as there in minimal barrier to entry and also in order to tap the market opportunity. Thus with the increase in supply, the demand line would ...Download file to see next pagesRead More
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Read the document I send you carefully
A market structure is the type of market that an economy chooses in order to assist in its decision-making. “The extent and characteristics of competition in the market affect choice behavior among the actors.” (Baumol, 1961, p.142) This means that economists are more concern on the attitude of buyers and sellers in the market and then conclude which market structure would be best for a certain economy.
6 Pages(1500 words)Essay
Exam paper---read the requirement I send you carefully
Market types include: perfectly competitive markets where there are several buyers and seller, oligopolistic markets where there are limited number of sellers and monopolistic markets where there are only one to two sellers. In some markets, the sellers are price takers, while in other markets the buyers are price takers.
6 Pages(1500 words)Essay
Exam paper---read the requirement I send you carefully
For instance, people make choices about what goods to produce, how to produce these products and the target market or consumers of these products. Normally, in straight economics, these questions are answered by the market demand and supply. However, in market conditions in which no particular player has the power to influence prices, every player determines the price of goods and services.
6 Pages(1500 words)Essay
Exam paper---read the requirement I send you carefully
For example, production of wheat and sale of the same in the market is an example of perfect competition. The producer produces wheat for sales but is bound to accept the market price for selling the product. In this paper, the demand-supply equilibrium will be determined.
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Leadership------read the requirement i send you carefully
The study would be reflecting the competencies of domestic as well as international leaders. It would highlight the similarities as well as dissimilarities in these two forms of leadership by comparing the leadership behaviour in some selected countries i.e.
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Read the requirement i send you carefully,
About three decades ago, employees were people who were there in the company to work and receive wages at the end of the day or the month. Much focus was on production and achievement of profits without taking into consideration the concerns, ideas, opinions, and general welfare of the employees.
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Commonly, economists of the 20th century explain the meaning of entrepreneur as the one who is always eager to take the risk of launching a new project forecasting its scope of earning maximum profit. It is worth mentioning in this context that there are certain special features in a successful entrepreneur, which make them different from others.
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The big idea...read the requirement i send you carefully
Rodrigue, J. (2013) stated “The most important transport problems are often related to urban areas and take place when transport systems, for a variety of reasons, cannot satisfy the numerous requirements of urban mobility. Urban productivity is highly dependent on the efficiency of its transport system to move labor, consumers and freight between multiple origins and destinations.” Congestion or increased density of population paved way for pollutions of various kinds in cities.
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This tool is quite useful given that it helps in the understanding the level of competitiveness and the direction the business is headed. With clear knowledge on current situation, it is possible taking advantage of business’ strength and adopts mechanisms to improve on weakness.
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China is most engaging place for business communities, local and foreign players are investing more in this. Since, China has good legal policies in industry sector; it aids China to develop more
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