Microeconomics Essays

Price Guarantee

Introduction Price guarantees have become a popular promotional tool for attracting new customers or selling new products to existing customers. Many business organizations are now adopting the price guarantee concept in their pricing policies. Most notable among them is Walmart. General implications of price guarantees Price guarantees can take two forms. One is price matching in which lower prices are immediately matched. The other is price beating in which lower prices are undercut by a certain percentage of the difference….

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Microeconomics About Fresh Water Supply

Scarcity of fresh water is emerging as the most critical resource issue which world is facing in recent years. The signs of a shrinking water supply can be seen worldwide. Many restaurants no longer provide a free glass of water to diners and cities restrict its use for private pools and gardens. The supply of fresh water is limited, but with the increase in population, the demand of water increases rapidly. We use water faster from our resources than it…

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Market Equilibration Process Paper

Glasses/Shades Sales In 2007, my business partner and I decided to get into the business of selling different types and brands of glasses. We purchased 1,000 glasses a month at about $4 a piece and the goal was to sell all the glasses every month. The price for these glasses started at $40 each. Based on our research on sites such as craigslist and ebay, we realized that the demand for shades was pretty high, in spite of this, our…

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Econ Problem Set

1) Describe the effects on output and welfare if the government regulates a monopoly so that it may not charge a price above p, which lies between the unregulated monopoly price and the optimally regulate price (determined by the intersection of the firm’s marginal cost and the market demand curve). As usual, the monopoly determines its optimal output on the basis of MR = MC. Here, however, it cannot charge a price in excess of p*. So, for any output…

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Supply and Demand

Chapter 3—Supply and Demand Question 1. Draw a demand curve with an equilibrium price and quantity, show what happens on your diagram when each of the following events occurs. Explain whether each of the following events represents a (i) shift of the demand curve or (ii) a movement along the demand curve. (a) A store owner finds that customers are willing to pay more for umbrellas on rainy days (b) When XYZ Telecom, a long-distance telephone service provider, offered reduced…

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Market Equilibration Process Final Paper

A condition or state, which the economic forces are at a balance, characterizes Economic Equilibrium. This paper outlines the process of market equilibrium and the restoration factor of the invisible hand. The paper discusses the several factors and the relevant laws governing the market demand and market supply, overall market theory, and shortages/surpluses due to market shifts, demonstrated by the housing market of Cupertino, California. The market graphs presented in Appendix A, and the equilibration process is shown step-by-step via…

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Microeconomics and the Law of Supply and Demand

During the simulation of Goodlife Inc. I was able to see how the effects of a lower rent verses a higher rent had on the vacancy percentage. In our simulation the town of Atlantis had only one rental agency with apartments available. There were single family homes available too but the need for renting was with apartments. I got to see how the supply and demand worked with this rental property simulation. The town of Atlantis saw a rise in…

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Monopoly – Economics

In this chapter, look for the answers to these questions: ? Why do monopolies arise? ? Why is MR The main cause of monopolies is barriers to entry – other firms cannot enter the market. Three sources of barriers to entry: 1. A single firm owns a key resource. E. g. , DeBeers owns most of the world’s diamond mines 2. The govt gives a single firm the exclusive right to produce the good. E. g. , patents, copyright laws…

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Microeconomics and Macroeconomics

Microeconomics is a branch of economics which deals with the study of resource allocation decisions within the confines of the sub-segments of an economy such as households and business firms (Arnold, 2010). Central to this study is an examination of how prices of goods and services in a market influence their demand and supply. Macroeconomics on the other hand deals with the study of the nature of the economy as a whole; national, regional or a global economy (Agarwal, 2007)….

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Cumberland Metal Industries

I.BACKGROUND CMI has developed a new technology using curled metal to create pile driving pads. Compared to existing products on the market, these pad offer several benefits: •Faster pile driving saves contractors rental fees, labor expense , and spreads overhead over more feet driven in a given period of time •Longer life of pads save contractors additional cost in reducing changeover time •Heat resistance further reduces changeover time, saving additional expenses •Safety – CMI pads do not expose workers to…

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Chip Monopoly

The structure of the market in any industry is important. Which market structure is the best is dependent on whether you are the consumer or the provider of the goods or services. In a monopolistically competitive market place there are many firms providing homogenous products meaning there are similar substitutes available which also means the demand curve is more elastic. The economic efficiency and barriers to entry for all practical purposes don’t exist. A normal rate of return in a…

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Individual Paper

As discussed in week 1; understanding market equilibrium and how to maintain market equilibrium is essential for all business leaders. Market equilibrium is the point at which the demand of the consumers is equal to the supply of the producers. The goal of all organizations is to ensure their output is at market equilibrium, therefore having no surplus or shortage. However, many factors can affect a both demand and supply of a product. This paper will look at the factors…

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Factors That Shift the Ppc

In economics, the Production Possibility Curve (PPC) is based under the field of macroeconomics. The production possibility curve (PPC) is also termed as the production possibility frontier (PPF), a production possibility boundary or sometimes called product transformation curve. It is defined as a curve that illustrates the possibility of producing two goods or services within a specified time with all the resources given such as (labour, land, capital and the technical knowledge). As we can see, here is an example…

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The Amount of Profit

In business there are certain factors that have to be evaluated before a company can see if a profit has been made. To even get to the point where a profit will be made there has to be a product that is sold whether it is a tangible or an intangible product. There has to be something that the business is selling in order to make that profit. The amount of profit that is attained is the outcome of the…

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Introduction to Macroeconomic Analysis

(a) Explain the meaning of a production possibilities curve. (b) What is assumed to be constant when we draw that curve? (c) How is a point on the curve different from (1) a point inside the curve or (2) a point outside the curve? (d) How does this curve illustrate the concept of opportunity cost? (e) How does it illustrate the principle of increasing marginal opportunity cost? 1(a)Production possibility curve measures the maximum combination of outputs in totality of the…

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