A Look At Three Types Of Price Searchers Economics Essay

A Look At Three Types Of Price Searchers Economics Essay A monopoly is a firm producing a commodity for which there is no close substitute. There are usually some forms of barriers of entry. It is difficult to define a pure monopoly as close substitutes are difficult to define. For example, there are no close substitutes for cigarettes, but there are many substitutes for Marlboro. 1.1 Characteristics à ¢Ã¢â€š ¬Ã‚ ¢ Features (a) Only one seller. (b) Restricted entry by barriers. (c) Market information is not free and perfect. à ¢Ã¢â€š ¬Ã‚ ¢ Barriers to entry (a) Legal barriers create legal monopolies. (i) Public franchise: exclusive right to run a business, e.g. TVB. (ii) Government licence: exclusive right to entry into a business, e.g. taxi licence. (iii) Patent: exclusive right to use an invention, e.g. right to produce a drug. (b) Natural barriers create natural monopolies. (i) The average cost falls over a large volume of output before it rises. LRAC would be lower if an industry were under monopoly than if it was shared between two or more competitors. (ii) Control the supply of an essential raw material, e.g. most diamond mines in the world are controlled by De Beers Ltd. (iii) Economies of scale: The large fixed cost of production requires a large output to pull down the average cost, e.g. electricity generated by China Light Power Ltd. 1.2 Output And Price Decisions Definition A single-price monopoly is one that charges the same price for every unit of output it sells. The monopoly must decide how much to produce and what price to charge. It is a price-searcher. Definition A price searcher is a seller with sufficient market power to set its price by adjusting supply. Since there is only one firm in the industry, the demand curve of the firm is also the demand curve of the industry, and the seller faces a downward sloping demand curve. Table 1 illustrates the demand function of a petrol station. The marginal revenue is less than and falls faster than the price charged. The price is also equal to average rev enue (AR). Table 1: Demand and marginal revenue Price (P, $/Litre) Quantity Demanded (Q) Total Revenue (TR = P x Q, $) Marginal Revenue (MR = ΆTR = ΆQ) ($/Extra Litre) 18 0 0 – 16 1 16 16 14 2 28 12 12 3 36 8 10 4 40 4 The monopoly maximises its profit by producing the level of output to MR = MC. Given the total cost as in Table 2, we can find that the best output level to maximise profit is at three litres, where both MC and MR are equal. The price charged is $12. Table 2: Demand and marginal cost Price (P, $/Litre) Quantity Demanded (Q) Total Revenue (TR=P x Q, $) Marginal revenue (MR = ΆTR / ΆQ, $/Extra Litre) Total Cost (TC, $) Marginal Cost ($/Extra Liter) 18 0 0 – 15 – 16 1 16 16 18 3 14 2 28 12 22 4 12 3 36 8 30 8 10 4 40 4 41 11 Graphically, the same conclusion can be derived in Figure 1. Figure 1 A monopoly’s output and price The price is determined by demand curve corresponding to the equilibrium quantity at which the MR equals to MC. The profit or loss is again determined by the ATC with reference to the quantity sold and the price charged. Owing to barriers to entry, economic profits will not be eliminated away in the long run. The only difference between short-run and long-run equilibrium is that in the long run, the firm will produce where MR = LRMC.

What is a Shaman Essay Example | Topics and Well Written Essays - 250 words - 1

What is a Shaman - Essay Example There are three basic concepts of Shamanism. The first concept of shamanism is the belief that animals, plants, water and rocks all have spirits which have to be respected and cared for by the human race (Michael. 59). The second concept focuses on personal responsibility and involves the belief of Buyan which can be related closely to Karma. The concept states that taking responsibility of one’s action is mark of an upright individual. The third concept advocates for balance. It states that balance is an important aspect that maintains harmony in the environment, within an individual and the community at large. In shamanism, a Shaman is approached when things get out of balance within the community, homestead or an individual (Michael. 59). The concepts of shamanism help in the understanding of the link between the living and the spirit world. The first concept portrays this notion through the use of a Shaman as a mediator between the living and the spirit worlds. The second concept advocates for personal responsibility which is an important aspect in human beings as it promotes self actualization in an individual thus creating positive thinking towards development as well as other life responsibilities such as management of the environment, promoting a peaceful existence in the community and respecting the human race. The third concept promotes a balance in natural and anthropogenic factors thus creating a harmonious environment (Michael. 62). Harmony is an important entity in community build-up as it is used to create a social capital which is required for communal development. It also maintains peace in the

Information and Communications Technology in Children Development Essay

Information and Communications Technology in Children Development - Essay Example A computer has always been a tool with great problem-solving potential. Regardless of how computers are used, people find an increased need to share information with others. This desire for information sharing involves the communication of electronic messages over a long distance and shaped the world into an information society. According to several historians, the Information Revolution is the third revolution in the history of the world after agricultural and industrial revolutions. The information age is the time, which brought fundamental changes in intellectual, social, philosophical and cultural aspects of the world. Some historians opined that actually information revolution was the first revolution ever occurred and the agricultural and industrial revolutions were caused due to the information revolution. To prove their claim they said that when civilization started, travelers and traders traveled from one place to another, as they have access to many cultures and traditions, they shared information and this information was actually the beginning of civilization as well as led the humanity towards the agricultural and industrial revolutions. Today information is the largest export of most News services, banks, insurance companies, television stations etc. these all organizations collect data, process it into information, distribute it, and store it as a major part of their business. As the world is an information society now, Information and Communication technology also become an active part of education and electronic classroom has evolved. Computers are found in grade schools, high schools, and colleges, as computer literacy becomes a graduation requirement. According to an official report, 98% of the schools of the United Kingdom alone are connected to the Internet (Rao, Mehta and Crishna, 1999). 1.2 Statement of the Problem This study will discuss the importance and benefits of Information and Communication Technology in the learning of Key Stage 2 children. It also attempts to determine the limitations and barriers to use information system in education. 1.3 Significance of the Study The importance of Information and Communication Technology in education has been thoroughly studied and explored in different researches and studies. However, the significance of this study lies in the researcher's aim to study the benefits of ICT in the learning of Key Stage 2 children. The intention is to look at the use of Information and Communication Technology in the learning of Key Stage 2 children.