Download file to see previous pages...
Because of its market dominance, a firm in a monopolistic marketplace has the exclusive rights to raise prices. Consequently, when it does so, the society has no alternative but to buy the high cost products. In contrast, in perfect competition, if one business raises prices the society can just move to the next competitor for a lower price. Thus, the society gets better prices (Samuelson & Marks, 326).
The losses to society can further be explained in terms of supply and cost curves. In a perfect competition, prices and the amount of goods produced are arrived at by looking at the market demand and supply curves. Accordingly, the society is assured of competitive prices, which necessarily lead to minimum prices. In a monopoly, the supply curve is hardly there. The amount of output does not determine the prices. Whether the sole firm produces less or more, it can still maximize the prices because the competitive level is restricted. Hence, in a monopoly, firms maximize their profits by raising prices without any added benefit to the society (Samuelson & Marks, 327). In addition, in a monopoly, the sole firm produces less in order to increase price, consequently exploiting the society.
Finally, the loss to society as a result of monopoly versus perfect competition is the reduction in the consumer surplus. Under monopoly, because of raised prices firms earn much more than what consumers gain from them. As a result, the reduction in consumer surplus leads to a reduction in consumer social welfare (Samuelson & Marks,
...Download file to see next pagesRead More
The idea behind the weekly update is to identify possible threats in the financial market and to handle them. This paper is a review of Weekly Market Update posted on 5 April 2012. It discuses market developments, economic trends and their implications, focus ahead and major moves.
The idea to develop the childcare centre is born out of the fact that there is a high demand for full-day childcare in the town and also the previously established centre named Twinkle Two was extremely successful and satisfactory. There is an urgent requirement to employ staffs in the organization which comprises of qualified childcare workers, receptionists and administrative officers for aspects like bookings, making payments, ordering supplies; cleaners and maintenance staffs too.
There has been significant conflict between the Airbus and Boeing airliners. This is with regard to product delineation. Their product advancement strategies are extremely crucial in establishing a competitive edge in the market.
I intend to schedule the second session with Dr. Silverstein in the coming September. I hope to watch more of his work this time and to learn from them.I had opportunities to participate in many activities with the Golden Key International Honor Society, which is an organization of international scholars that offers various internships.
John Paul II begins by outlining that work is essential for humanities existence and survival on the planet. The main idea is that man’s power over earth is stems from and ensured through his work. Technology can help ease the process of production and can enhance
The author states that research is the first step. Writer should think on the material available for essay writing and also get the material from internet and books. Second step is analyzing the relevance of topic. Brainstorming for framing the ideas and questions and then answering them is the third step that should be considered.
As the discussion stresses it is especially surprising that a culture like they have in Germany would have a road that has so few rules. The Germans follow lots of driving rules on the autobahn so they can safely travel at high rates of speed, but it seems odd that a culture that loves rules and order would have no rules for speed on their highways.
The essay is a proposal argument despite the topic being general since the author creates other numerous proposals that he dwells on as the essay progresses. The essay has an introductory paragraph, where the author states the thesis. In addition, there are body paragraphs where the author explains the author explains his proposals.
According to the research findings, it can, therefore, be said that the introduction part of the essay may have been better if the researcher included a thesis statement. If given more time, the researcher would like to change the introduction a bit to include a thesis statement that brings out the main theme and focus of the essay.
1 Pages(250 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Essay for FREE!