...NAME: LKHAGVASUREN KHURELBAATAR ID: EMV 20110 ------------------------------------------------- Individual Essay Four Market Structures in Australia. NAME: LKHAGVASUREN KHURELBAATAR ID: EMV 20110 ------------------------------------------------- Individual Essay Four Market Structures in Australia. Introduction Market structure reflects all the most important aspects of the market - the number of firms in the industry, the type of product produced, the possibility to enter and exit of firms, number of customers, the ability of a single firm to influence the market price. The lower the firm's ability to influence the market, the more competitive the industry is considered. In the limiting case where the degree of influence of one firm is zero, talk about a perfectly competitive market. Companies and business through time they live attached to the four market structures. This essay will give some examples of the four market structures in Australia like Monopoly, duopoly, oligopoly and monopolistic competition. Companies and businesses can move from one market structure to another structure of the market during the period of operation. These changes between the structures may be the result of product changes, the introduction of competition and the interests of the client. This essay will give clear examples on each market structure: 1. Monopoly occurs when a company produces products for which there is no substitute. Due to the fact that the company has...
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...Running Head: ECONOMICS ESSAY III 1 Economics Essay III Task: Write an essay that describes the relationship between regulation and market structures and how regulations affects the market. A Define Industrial Regulation Explain why industrial regulation exists, how it affects the market, provide entities affected by industrial regulation in terms of market structure, and why industrial regulation affects those entities. Economic regulation is a form of government intervention designed to influence the behavior of firms and individuals in the private sector (Econ Guru Web). Other forms include public expenditures, taxes, government ownership, loans and loan guarantees, tax expenditures, equity interests in private companies and moral suasion. It is the imposition of rules by a government, backed by the use of penalties, that are intended specifically to modify the economic behavior of individuals and firms in the private sector, regulation in general is aimed at narrowing choices in certain areas, including prices (airline fares, minimum wages, certain agricultural products, telephone rates), supply (broadcasting licenses, occupational licensing, agricultural production quotas, pipeline certificates "of public convenience and necessity"), rate of return (public utilities, pipelines), disclosure of information (securities prospectuses, content labeling), methods ECONOMICS ESSAY III 2 of production (effluent standards, worker health and...
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...Market structures like Monopoly, Duopoly, and Oligopoly and Monopolistic competition in any industry in Australia. Market structure reflects all the most important aspects of the market - the number of firms in the industry, the type of product produced, the possibility to enter and exit of firms, number of customers, the ability of a single firm to influence the market price. The lower the firm's ability to influence the market, the more competitive the industry is considered. In the limiting case where the degree of influence of one firm is zero, talk about a perfectly competitive market. Companies and business through time they live attached to the four market structures. This essay will give some examples of the four market structures in Australia like Monopoly, duopoly, oligopoly and monopolistic competition. Companies and businesses can move from one market structure to another structure of the market during the period of operation. These changes between the structures may be the result of product changes, the introduction of competition and the interests of the client. This essay will give clear examples on each market structure: 1. Monopoly occurs when a company produces products for which there is no substitute. Due to the fact that the company has no competitors, it has full control over the delivery of these products and, as a single vendor can create barriers for potential competitors. In the real world monopolies that exist to date - this is some of the...
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...Essay #1. Congress is discussing the possibility of removing patent protection for life saving drugs in order to reduce the cost of the Medicare and Medicaid systems. Discuss both the short-run and long-run implications for the economic situation of the drug industry. Include in your answer the impact on prices, new development, etc. of drugs. Include appropriate graphs showing the difference between monopoly pricing and competitive pricing. The government can give a pharmaceutical company the exclusive right to produce a good by granting patents on drugs. Patents refer to the exclusive monopoly right over a particular drug that extends for a period of 20 years, creating barriers to entry where other firms cannot enter the market. The existence of high barriers to entry prevents firms from entering the market even in the long-run. Therefore, it is possible for the monopolist to avoid competition and continue making positive economic profits in the long-run. If congress remove patent protection for life saving drugs in order to reduce the cost of the Medicare and Medicaid system, there will be many implications in the short-run and long-run that will effect both the pharmaceutical companies and consumers both positive and negatively. Monopolies can maintain super-normal profits in the long run. As with all firms, profits are maximized when MC = MR. The level of profit depends upon the degree of competition in the market, which for a pure monopoly is zero. Profit maximization...
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...Garett Reppenhagen the writer of the essay titled, “I was an American sniper and Chris Kyle’s war was not my war,” is trying to make a point to his audience. Garett’s purpose is to ensure that no one makes the mistake of thinking the hit movie The American Sniper depicts what Iraq and the war are all about. This article was first published on Salon, a website that has an audience favoring liberals more than conservatives. This article also has an audience of a younger generation that follows hit movies. Garett Reppenhagen served as a Cavalry Scout Sniper with the 1st Infantry Division in the US Army, and is also a veteran advocate and social justice organizer. Garett’s background has a lot of relevance to this topic. I would say he is credible towards this whole subject. He is qualified to make judgment and criticize the way this movie is trying to depict Iraq. Garett’s extrinsic ethos is that he has served in the military. He has made a profession of being a real life sniper so he knows most of the scenarios that go on in the movie. He could also describe what goes on as you enter a war zone and how each and every person reacts. Garett states, "But viewing the war only through his eyes gives us too narrow frame." I believe this quote shows he cares about the audience because he wants to share that the frame of Iraq is not narrow, in fact it is on the contrary. Iraq is full of hospitality, proud history, and old-soul wisdom. This quote also shows virtue and goodness because he...
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...A. Summarize the four major pieces of legislation collectively known as the Antitrust Laws. Antitrust laws were put in place to make business’s compete fairly. These fall into four main areas: agreements between competitors, contractual arrangements between sellers and buyers, the pursuit or maintenance of monopoly power, and mergers. The four major pieces of legislation collectively known as the Antitrust Laws are; the Sherman Antitrust Act, the Clayton Antitrust Act, the Federal Trade Commission Act and the Celler-Kefauver Act of 1950. The Sherman Antitrust Act has two categories that are targeted; ○ to restrain or prevent trade among states or foreign nations ○ prohibit against monopolies. ○ Only the United States Department of Justice has the power to prosecute individuals who are suspected of violating this act, (unless the individual state has the power granted by its own antitrust legislation.) The Federal Trade Commission Act ○ created the Federal Trade Commission ○ gave the Commission the power to enforce United States Antitrust legislation. The Clayton Antitrust Act ○ passed to prohibit mergers and acquisitions when those would substantially lessen competition. ○ enabled state attorney generals the ability to prosecute and enforce federal antitrust laws. ○ outlawed price discrimination, regulated stock acquisitions, and tying contracts ○ The Robinson - Pitman Act amended the Clayton Antitrust Act by banning...
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... MONOPOLIES EXIST Page 2 Do Pure Monopolies Exist? Thesis Statement: According to the Essentials of Economics textbook a monopoly is defined as "a market structure in which the number of sellers is a small that each seller is a small that each seller is able to influence the total supply, and the price of a good or service. My essay is going to talk about if I agree if pure monopoly exist. Do I agree that pure monopoly exist actually, I do not agree totally with this statement. I believe that pure monopoly can exist up until another company or companies replace and create a competitive market that can cause the fixed prices to fluctuate. A natural monopoly is a firm with such extreme economics of scale that once it begins creating a certain level of output, it can produce move at a lover cost then smaller competitor. "Natural monopolies occur when, for whatever reason, the average cost curves decline over a relevant span of output quantities. (Spark notes Editors, n.d.) A monopoly is different from competitive firms in that it is not a price taker. Because it's only supplier in the market, it faces a downward sloping demand curve, the market demand curve. As a result, the monopoly is free to choose its price and quality according to market demand. A Pure Monopoly is a firm that satisfies...
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...A monopoly is a single supplier in the industry and they gain monopoly power if they have at least 25% market share in the market. Although monopolies in the mind of consumers are seemed as bad this may not always be the case, as monopolies may not necessarily abuse their power. Therefore in my essay I will be discussing the benefits of monopolies on consumers, and show that they can have positive effects. Firstly, monopolies are not seemed as bad for consumers as they can exploit economies of scale. This means that as the monopolies increase their production it can lead to a lower average cost. As shown in the diagram below. It is producing at a level where it can still achieve economies of scale by expanding production. This can help consumers benefit from lower prices. Industries that have natural monopolies such as the steel production or water or electricity companies are inherently more effect then when there are many firms providing the same service. Infrastructure will needlessly double and lead in inefficiency. Society i better off restricting the market to one firm because by producing more it is able to reduce its costs, something many firms cannot do by themselves. However the extent to which this depends upon whether the monopolies are incentivized to give lower prices to consumers. Like all firms monopolies also have the aim of profit maximizing and therefore they still have the incentive to reduce their sales and charge at a higher prince than in a competitive...
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...U.S. Monopoly on Global Weapons Trade The 19th and 20th centuries have been the centuries of monopoly capitalism. As we move into the 21st century, there is a new cultural and economic phenomenon arising: monopoly militarism. That is the subject this case study attempts to explore “ U.S. monopoly on the militarization of the world” . The Global arms trade can effectively be referred to as “the global weapons monopoly." Cold war and after During cold war days, the United States did have a major competitor. For instance, the Congressional Research Service's data for 1990, the last year of the Soviet Union's existence, shows global weapons sales totaling $32.7 billion, with the United States accounting for $12.1 billion of that or 37% of the market. For its part, the Soviet Union was responsible for a competitive $10.7 billion in deals inked that year. France, China, and the United Kingdom accounted for most of the rest. However in 2008, according to report from the Congressional Research Service (CRS), $55.2 billion in weapons deals were concluded worldwide. Of that total, the United States was responsible for $37.8 billion in weapons sales agreements, or 68.4% of the total "trade." US agreements with all of its customers include not only sales of very costly major weapons systems, but also the upgrading and the support of systems previously provided. The arms agreements involving a wide variety of items such as spare parts, ammunition, ordnance, training, and support...
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...ECO 555: Economics for Decision Making (MBA Microeconomics) --Essay Assignment Instructor: Frank F. Limehouse Student Name: Zhongyang (Marcus) Huang Student ID: #1261458 Finished Time: 11/05/2012 Google's Monopoly and Internet Freedom By JEFFREY KATZ Wall Street Journal, June 7, 2012 http://online.wsj.com/article/SB10001424052702303830204577448792246251470.html Never is the issue concerning monopoly and perfect competitive market failing to attract our eyes. And this is also a hot topic we discussed in our economics course. According to the article, Google, the most popular search engine in the world, controls nearly 82% of the global search market and 98% of the mobile search market. Its annual revenue is larger than the economies of the world's 28 poorest countries combined. And its closest competitor, Bing, is so far behind in both market share and revenue that Google has become, effectively, a monopoly. A monopoly refers to a situation wherein there is a single seller of a product or service for which there are no close substitutes. A single company dominates its area; squeezes out all its competitors thus gaining control over the entire market and inevitably can dictate the price of the product or service. While in the perfect competition market, many firms produce identical products, and competition forces them all to sell at the market price. Firms face perfectly elastic demand...
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...and students feedback. The candidate responses supplied here for the longer essay-style questions are intended to give some idea about how the exam questions might be answered. The examiner commentaries (underlined text) have been added to give you some sense of what is rewarded in the exam and which areas can be developed. Again, these are not the only ways to answer such questions but they can be treated as one way of approaching questions of these types. Topic 1 The firm: objectives, costs and revenues 1 Both private and public companies are privately owned capitalist business enterprises. The difference stems from their ownership. Private companies are owned by private shareholders who can choose the buyer of their shares. Public company shares are listed on the stock market, which means that they have to comply with the rules of the stock market and any member of the public can buy shares in the company. 2 An excess of sales receipts over the spending of a business during a period of time, which can be calculated using the formula: profit = revenue – costs. 3 At any level of output, revenue is calculated by multiplying output by the price at which each unit of output is sold. In perfect competition, because it is always possible to increase sales revenue by selling more units of output, the revenue-maximising level of output does not exist. In other market structures, including monopoly and oligopoly, marginal revenue falls as more units of the good are sold....
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...country and “are intended to circulate accumulated wealth and to regulate consumption according to the urgency of need” (Ebrey, Chinese Civilization 63). As each side lists either the benefit or the shortcomings, it is clear that the learnt men and the minister hold completely different perspectives with learnt men oppose effective government regulation whereas the officer supports. As the record of this debate contains twenty-four chapters and the first chapter included in Chinese Civilization contains four pages (Ebrey 60), it is reasonably to infer that not only there is disagreement, but also that level of dissention was intense. On the other side, in the Discourse on Salt and Iron (Ebrey 60-63) reveals the opposition to governmental monopolies in salt and iron and almost all government intervention. Scholars or “the learned men” believes that “These matters [economy and commerce] should not...
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...Invisible Hand in the Vietnamese context Introduction Adam Smith is an infamous political economist in the UK and around the world. He has many valuable arguments among which this essay will refer to the theory of "invisible hand" which was coined in The Wealth of Nations. The invisible hand is essentially a natural phenomenon that guides free markets and capitalism through competition for scarce resources by maintaining equilibrium between the supply and demand of resources. Also, as market participants compete, driven by their own needs and wants, they involuntarily benefit society at large without the help of goverment. This essay will examine the core theoretical ideas behind Adam Smith’s invisible hand theory, focusing on the negative aspects, and show that the negative aspects are more prominent when applied to the article ‘Power trader accused of abusing monopoly position’ Understanding of theory Adam Smith's invisible hand theory sets the foundation for laissez-faire economic philosophy, which describe the self-regulating behavior and minimize the role of government intervention and taxation in the free markets .Smith argued the most crucial variable in the market is the price and its functions is providing information telling people what to do and presenting incentive for them to act on this information. Both companies and workers are guided, as if by an invisible hand, to produce the goods and services that are most desired by consumers, which occurs when all of...
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...GOVERNMENT REGULATION IS GOVERNMENT MONOPOLY: THE EXAMPLES OF BRITISH AGRICULTURE AND THE BRITISH STOCK EXCHANGE SEÁN CRONIN Pretty much everyone agrees that monopolies — government-run or government-backed, coercive controls over the production, distribution or purchase of particular categories of product or service — are bad for society, i.e. for pretty much everybody. One only has to remember the record of British Leyland — a government industrial monopoly that did considerably more damage to the British motor industry than the Luftwaffe — to see that monopolies are harmful.1 The only exception to this generally agreed belief seems to run along the lines of “all monopolies are bad except when I or my friends are in control ”, which helps to explain why monopolies are so popular with governments. So this essay will not attempt to argue that monopolies are bad, any more than it will attempt to argue that the earth is round. The point I wish here to make is that monopolies, because they are so much more numerous, are accordingly causing much more harm, than is commonly thought. I will focus on two examples, both of which show a monopoly in action and doing great harm, even though at first glance there doesn’t appear to be any monopoly at all. EVERY GOVERNMENT REGULATORY AGENCY IS A MONOPOLY The first example is the long running saga of BSE. Bovine Spongiform Encephalopathy is a disease suffered by British beef cattle during the nineteen eighties and nineties, which is believed...
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...1. Why was/were the firm(s) investigated for antitrust behavior? The Justice Department and the states believe that Microsoft has used its monopoly in operating system software to protect its dominance and eliminate competitors. The government says that in the long run, consumers will be harmed, because there will be less competition and fewer choices. More specifically, the government contends that Microsoft has engaged in actions to preserve its Windows monopoly that violate antitrust laws. The government also maintains that the company has used the power of its Windows monopoly to attempt to monopolize the market for Internet browsing software. In addition, government lawyers allege that the company has committed other anti-competitive acts. Microsoft contends that it is simply trying to innovate its products. The company contends that its actions are legal and says that there's no grounds of consumer indignation over the practices that the government is targeting. If the government wins at the trial court, it has already specified that it wants Microsoft to cancel contracts deemed exclusionary. In addition, the government wants Microsoft either to strip out its Internet browsing technology from Windows 98 or to include a rival browser made by Netscape Communications Corp. The plaintiffs alleged that Microsoft abused monopoly power on Intel-based personal computers in its handling of operating system sales and web browser sales. The issue central to the case was whether...
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