Nobody downloaded yet

Perfect Competitive Markets and Allocating the Resources Fairly Across Sectors in the Economy - Research Paper Example

Comments (0) Cite this document
Summary
The paper describes activities of businesses or individuals that affect the lives of people who live around them. It may also affect the natural environment in which the business or individual operates. The environment or people are affected either positively or negatively…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98% of users find it useful
Perfect Competitive Markets and Allocating the Resources Fairly Across Sectors in the Economy
Read TextPreview

Extract of sample "Perfect Competitive Markets and Allocating the Resources Fairly Across Sectors in the Economy"

Download file to see previous pages According to Callahan (2004), the British economist Pigou played a major role in describing the theory of externalities. Negative externalities are costs or negative effects that spill over to the third parties because of the activities of other people or business entities. A third party is a person or entity that is not part of the activities or processes that goes on when the negative effects are generated. Negative externalities are factory emissions, noise pollutions and dumped wastes. A good example of a negative externality is a factory that dumps untreated wastes into the river or carbon emissions released by fuel engines. People who use the water downstream spend their money in cleaning the polluted water. Therefore, the cost of cleaning the water is a negative externality. Describe some of the ways to correct the negative externalities and the pros and cons of each method. Give examples. Governments apply various mechanisms to eliminate or reduce negative externalities. They include government taxations, criminalization of the polluting activity, government regulation through quotas and permits. The first mechanism used to reduce the negative externality is taxation. The government or local authority introduce taxes to the business or non-business entities responsible for producing pollutants that harm the environment and the people who live in it. Environmental taxes are the most powerful tool societies for reducing externalities and protecting human and environmental health. ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Perfect Competitive Markets and Allocating the Resources Fairly Across Research Paper, n.d.)
Perfect Competitive Markets and Allocating the Resources Fairly Across Research Paper. Retrieved from https://studentshare.org/marketing/1735973-assessment-item-1-assignment-economics-for-business
(Perfect Competitive Markets and Allocating the Resources Fairly Across Research Paper)
Perfect Competitive Markets and Allocating the Resources Fairly Across Research Paper. https://studentshare.org/marketing/1735973-assessment-item-1-assignment-economics-for-business.
“Perfect Competitive Markets and Allocating the Resources Fairly Across Research Paper”, n.d. https://studentshare.org/marketing/1735973-assessment-item-1-assignment-economics-for-business.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Perfect Competitive Markets and Allocating the Resources Fairly Across Sectors in the Economy

Markets and the Economy

...? Markets and the Economy ID Number: of School Word Count 240 of Submission: August 18, 2011 Markets and the Economy Introduction The world financial market is in great turmoil today, as shown by the wild fluctuations in the major stock markets during the past few weeks. There is a lot happening today that can be confusing to some people and this paper tries to explain the reasons behind these major events. A few of these are the first-time ever credit downgrade of the United States of America, the crises in sovereign debts of some European nations and the worst-ever riots in London in recent history due to unemployed youths and economic...
6 Pages(1500 words)Admission/Application Essay

MARKETS AND THE ECONOMY

...in price levels and wages. Thus, when one or more of the other macro-economic variables changes in the economy, prices and wages are slow to react to this change, therefore the economy comes to operate in a short-run equilibrium where prices and wages are yet to adjust to the other macroeconomic changes. Some of the reasons for this stickiness of prices and wages include contracts for fixed duration like labor union contract for wages fixed for a year, or even market competition prohibiting firms from increasing prices suddenly. However, as time goes (in the long-run), wages contracts get re-negotiated depending on earlier changes in demand and supply, inflation, and...
6 Pages(1500 words)Assignment

Utopian Economy and Markets

...?Answer Utopian economy is fundamentally based on the assumption of ideal conditions where produced goods are consumed by people. The idealistic format of economy is based on free market economy and favors capitalistic approach with little regulation from the state. Cassidy has elaborated Adam Smith’s views by saying that market needed to be self-regulatory as buyers were assumed to have perfect understanding of goods that they bought. Most interesting was the fact that it promoted excludability as the goods purchased by one consumer becomes consumer’s exclusive item which cannot be consumed by others, even if the consumer does not use...
3 Pages(750 words)Book Report/Review

Competitive Markets & Free-Market Economies

...? Competitive and Free Markets A competitive market is one that has many buyers and sellers in the market hence not one buyer or seller has the power to manipulate price. There are two extremes in a market. At one end there is a perfectly competitive market where there are many firms competing hence each firm is relatively small as compared to the industry and so has no influence on price. On the other extreme is the monopoly, a single firm in the whole industry hence there is no competition (Sloman 2007). Theoretically a perfect competition is possible...
4 Pages(1000 words)Essay

Fairly Contemporary Issue about Global Political Economy

...contribute to global political economy in different ways. In the fading of the hegemonies, it is evident that the global economy does possess regimes that reflect the British regimes and others that reflect the American regime. The distribution of power among states in the global economy does rid the states the mentality that the American hegemony is still a part of the global economy. However, it is of considerable importance that the global market should acknowledge that the American influence has been influential in setting up politically, and economically successful societies. The American hegemony has been useful in setting up healthy...
6 Pages(1500 words)Essay

Perfect markets, do they exist

...of economies have changed the very notion of market. The local economies' integration with the international markets has made the task of price detection and allocation a speciality in itself. The technologically developed nations who afford to invest in information technology do have a faster and easier access to market realities. On the contrary, the third world being deficient in digital infrastructure does not enjoy an unrestricted access to global trends. This technological gap and non-uniform flow of information are two major factors that shatter all the possibilities of existence of a perfect...
8 Pages(2000 words)Essay

Perfectly competitive markets

...Assignment Microeconomics Question no The characteristics of perfectly competitive markets affect how the price of products, herein referred toas bananas, is determined in the market. Perfectly competitive markets have large number of buyers and sellers; who are relatively small in size - hence, their underlying ability to influence price is negligible. Other factors that differentiate perfectly competitive markets from other market structures are easy entry and exit into and out of the industry (Welch & Welch, 2009). Both consumers and producers have perfect information availability...
6 Pages(1500 words)Essay

Human Resources, Competitive Advantg

...Human Resource Management One of the trends that will affect HR practices and the way labor market is composed is age. People between the ages of 45 to 65 are increasing, following an increase in those individuals who are 16 to 24 years old (Dessler 28). Issues related to aging experienced by HR include planning for retirement and retraining the workforce. Second trend that may affect is the issue of diversity, as the number of immigrants increase and due to this HR will experience the issue of managing cultural diversity within the workforce. The third trend is increase in participation of the female gender in the workforce. HR will have to ensure that they are given equal opportunity and they are...
2 Pages(500 words)Essay

Allocating resources and costs

...on pricing signals. To allocate scarce resources, the market economy highly depends on price signals which can only be projected by different costing methods. The relationship is that scarce resources have the potential to command higher costs than abundant resources. It therefore, means that, correct price signals guide users in the following ways; they will use scarce resources to command high cost on highly valued commodity while and uses low costs on lower valued commodities (2014). Therefore, it indicates that when costs are minimally or incorrectly projected, resources users will waste them by...
1 Pages(250 words)Essay

Us Economy: Private and Public Sectors

..., and ensure that contracts enforcement is done accordingly (Campbell & Stanley, 2004). Second the United States public sector maintains competition in the market. In any market system, the fundamental regulatory mechanism is competition. Competition subjects the resource owners and the producers to the sovereignty of consumers. The United States government is responsible in controlling the market forces only under monopolistic market. In this case the government uses antitrust and regulation to control the monopoly power. Under some situations, the government allows the operation of...
7 Pages(1750 words)Research Paper
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Research Paper on topic Perfect Competitive Markets and Allocating the Resources Fairly Across Sectors in the Economy for FREE!

Contact Us