CHECK THESE SAMPLES OF Microeconomics
... Point “a” does not represent an efficient allocation of factor of production. To see this, consider a point like ‘b’ in the same graph shown below. It provides the same level of output of good X as point “a” since we still are on the same X isoquant, but the production of Y has increased since now we are on a higher Y isoquant. Similarly, we could have picked a point on the Y isoquant through point “a” which is tangent to a higher X isoquant. This would imply a higher production of good X without reducing the output of good Y. Since such Pareto improvements are possible, point “a” can’t be an efficient allocation. 2) The Coase theorem states that in the absence of transaction costs, ownership of property rights does not matter... Point “a”...
3 Pages(750 words)Essay
...? Microeconomics 08/26 Microeconomics In 2007, the potato chip industry in the Northwest was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competing in a monopolistically competitive market structure. In 2008, two smart lawyers quietly bought up all the firms and began operations as a monopoly called “Wonks.” To operate efficiently, Wonks hired a management consulting firm, which estimated a different long-run competitive equilibrium. The new company is now a “monopoly” which is only the sole provider of potato chip in the entire country. Now, there is only a single supplier of potato chip all across the region (Brigham, 1976). As all...
6 Pages(1500 words)Essay
...of the of the Term Paper on Microeconomics Introduction As economics has many fields or branches, microeconomics is one of such fields, which deals with the study of consumer behavior. The consumer can belong to a household, an industry or a company. Hence, microeconomics relates to the study of allocation of funds by different sections of users, which include domestic households, firms and industries. Their decision making pattern is thoroughly studied to make assessment and observation for the future forecast of market condition, particularly when resources are limited. However, since the buying and selling is common to all participants of economy, therefore...
10 Pages(2500 words)Term Paper
...Indian Railways Enjoying 150 years of Monopoly Introduction to Monopoly Monopoly is a market conditions where there is only one seller to meet the requirements of large number of buyers. In other words, monopoly exists where there is no competition. The buyers have no alternatives to select and purchase in a monopoly market. The single seller determines the price of his product, the supply at any point of time, and indeed, the quality of the product. At the first glance, this seems to be unrealistic; there are some items in the real market which enjoys all the privileges of monopoly. Bill Gates, the owner of Microsoft Corporation had once experienced it. The worst thing about monopoly is that the seller gets market command... Railways...
4 Pages(1000 words)Essay
...Utility theory and marginal costs: Introduction: The demand for goods and services depends on a number of factors which include prices, tastes and preferences and income, the utility theory describes consumer consumption behavior and shows how there is a decline in utility derived from the consumption of extra units of a good. Marginal cost is a concept in economics that describes the extra cost incurred in production of one extra unit of a good or service in a firm, the paper discusses both the utility theory and the marginal cost concept.
Utility theory:
Utility can be defined as the satisfaction derived from the consumption of services and goods by a consumer, the theory is an attempt to measure the general satisfaction... theory and...
5 Pages(1250 words)Term Paper
...Topic: MACROECONOMICS Table of Contents 2 Introduction 3 Body 4 This report aims at demystifying two definite aspects of the Keynesian macroeconomic model. It is a static demand side model that came into existence after the Great Depression of 1929. Firstly, the national income account identity, to be precise the saving-investment identity in a Keynesian economy is discussed. Accounting identities always exhibit equality regardless the magnitude or value of its variables. Or in other words accounting identities are statements that by definition are always true. In a closed or Keynesian economy the savings-investment identity is derived without taking into consideration export and import. The saving-investment is derived twice... MACROECONOMIC...
7 Pages(1750 words)Term Paper
...Micro & Macroeconomics Even though Microeconomics and Macroeconomics may appear to be the same thing, there are distinct differences between the two. The one thing that these two concepts have in common with each other is that they both come from the main category of economics (“Difference”). The prefixes of these two functions give an indication of their origin—micro is smaller while macro is larger. This is just a simple explanation of these two economic principles because, in reality, it is a lot more complicated than that. Microeconomics is to do with the market’s supply and demand factors that establish the price levels of an economy (“Difference”). Macroeconomics is similar to this except that it...
2 Pages(500 words)Essay
...Microeconomics Microeconomics Resources in a country can be ified into two groups; tangible and intangible resources. Goods such as food and drinks, electronic goods, vehicles etc are tangible resources whereas services like education, healthcare, tourism, business consultancy etc are intangible resources. UAE is a country which is blessed with immense oil resources whereas it lacks scarcity in manpower resources. In fact UAE is currently facing demographic imbalances because of the huge expatriate workforce available there. The number of overseas population is more than the number of locals in UAE. Abdullah (2007) has pointed out that “8 out of 10 people living in the UAE were born abroad as per the...
6 Pages(1500 words)Research Paper
... Discuss how a firm in a perfectly competitive market can make a loss in the short run yet remain in the market. What happens to the firm in the long run?
Introduction
A huge number of producers with the same standardized products characterize competitive business markets. A competitive market does not give the producers or sellers the ability to influence the price. Entries and exit of sellers into the market provide unnecessary no price actions (Bartlett 12). In such a business environment, a firm can perfectly make a loss in the short run as all its competitors provide the same products. The probability of every firm in the same industry to experience a loss depends on the availability of the same product (Ferrell... Discuss how a firm...
3 Pages(750 words)Essay
...Consultation on Market Structures Consultation on Market Structures Market structures are the different conditions or characteristics of a certain market that interrelate to determine the degree of competition and profitability of a given market in an economy. There are different market structures in the economy determined by the different characteristics including monopoly, perfect competition, oligopoly, and monopolistic competition. Perfect competition is a market structure where there are many buyers and sellers operating in the market having no influence on the price, hence are price takers (Samuelson & Stephen, 2012). One of the main characteristics of perfect competition includes sale of homogenous goods where all firms... on Market...
8 Pages(2000 words)Essay
