Essays on Monopoly

Abstract

The paper dwells on general equilibrium theory by putting into perspective various critical issues. The origin of the concept of general equilibrium theory is illuminated dating back to neoclassical period. Moreover, various models such as Walras model of pricing and modern equilibrium model is also put into consideration. Finally, the importance and application of general equilibrium has also been discussed at length. General equilibrium theory refers to a concept modeled around theoretical economics. The modern general equilibrium takes into consideration three important interpretations which should be taken into consideration. The idea of general equilibrium theory cannot be complete when Continue reading...

This article is about how two of the world’s largest parcel delivery and shipping companies are, in fact, owned by the same owners. The article talks about UPS and FedEx, two companies having a chunk of the market share offering the above-mentioned services. Based on the illustration shown herewith, UPS has a 25.9% share of the deferred market while FedEx is closely following at 21.8% share. In terms of overnight packages, FedEx leads all market players with a 42.2% share while UPS follows at 33.8%.
Figure 1 Market Share of FedEx and UPS
Taken together, these two companies Continue reading...

An ideal market place is one where demand is equal to supply leading to the right quantity of goods being supplied into the market. The goods that are supplied in the market must also be used or at least bought by the consumers in order to create a “perfect” market place. If this balance is changes or forced to change, then the resulting market would not be an ideal market. It would either be more goods supplied than demanded or more goods demanded then supplied. In either case, this will lead to higher than the actual or lower than Continue reading...

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The company that changed the world
England’s East India Company (EIC) was established by a royal charter on one cold New Year’s Eve in 1600. It was established in order to take part in beneficial space trade, the monopoly on which Spain had till 1588. Firstly, the company conducted separate voyages to India. Few years later, in India were built first factories, and since that time Britain begun its ardent activity in the region. The company had a full monopoly for all the trade between Britain and Asia. The greatest impact this company had in Continue reading...

Chicago Bridge & Iron Co. V. Federal Commission
[United States Court of Appeals, Fifth Circuit, 515 F3d 447 (2008)]
FACTS: The Chicago Bridge and Iron Company and its United States subsidiary, Chicago Bridge and Iron Company (Petitioner) is a company that was engaged in designing, engineering, and constructing industrial storage tanks for liquefied natural gas and other gases. In this market the Petitioner and another company, Pitt-Des Moines, Inc., were the dominant firms. The Petitioner acquired all the assets belonging to Pitt-Des Moines, Inc. in the year 2001 for 84 million dollars. The Respondent preferred charges against the Petitioner alleging Continue reading...

Business Strategy

Competitive advantage can be defined as the advantage gained or accrued by a firm or company over other firms in a competitive industry. This is done by offering customers a greater value of the purchased products and through several mechanisms (Rumelt, 2003). Such mechanisms may include low priced goods, high quality products, and after sale services that are superior to competitors. Competitive advantage may stem from several factors such as economies of scale, integration and non- integration and process based core competences (Peteraf, 1993). To further understand the concept of competitive advantage, several theories have been put forward for Continue reading...

Import Tariffs

Introduction
Sloman and Wards (2007, p23) define tariffs as the taxes imposed by the government on the imported goods. In most nations of the world, the tariffs on the imported goods have always been hiked in favor of the locally manufactured goods. When the imported goods get to be highly taxed by the native government, their prices are increased to counteract the high cost of importation. This has always left the domestic goods relatively cheaper and thus high demand from the customers. The imported goods on the hand suffer at this expense; their cost lowers their demand. The government Continue reading...

INTRODUCTION

In order to come up with effective and efficient strategies, it is important to understand the dynamics of different market structures. Different market structures have different characteristics and features and operate differently. In this report, an attempt has been made to understand the different market structures and comments have been made on the different features and characteristics of these market structures.

MARKET STRUCTURE

A market is a group of individuals, firms and economic agents, who have interaction with each other as a buyer and seller. In economics market structures are defined into four main types, and that are perfect competition, monopolistic Continue reading...

Introduction

Antitrust policies are a threat to companies welfare; most of these laws are detrimental to monopolistic firms. This is due to the extensive market power that they dominate over a given sector in the economy. Most companies have suffered antitrust penalties due to their dominance in the market. This causes a negative effect to the statement of financial position of such firms. Microsoft is one of the best examples of companies that were subjected to antitrust laws. Microsoft is a monopolistic firm in the computer software sector. It deals with manufacturing and selling of computer chips to all the Continue reading...

Article Summary

The two largest companies in Telecommunication industry are Mexican telecommunications and television broadcasting. These two companies dominate the Mexico City media industry, therefore, exercising monopoly. It is because of the monopoly powers with the two companies that have resulted to increase in cost of doing business in Mexico. They are have set high prices thus limiting investment, and holding back the penetration of new technologies (Malkin 6).
According to International Telecommunication Union, only 26 percent of the Mexican households have access to the Internet compared to 45 percent in Brazil. The course of the monopoly in the market is Continue reading...

The first Tuesday after the first Monday in the month of November 2012, saw a tradition coined in 1845 realized once again. The citizens of United States went to the polls in their respective states to elect their president. President Barack Obama sought reelection for a second and final term against the former governor of Massachusetts, Mitt Romney. November 6, 2012 saw Obama win the elections; with the Democratic Party dominating the senate and the Republican Party the House of Representatives.
Each candidate relied on a war chest of a different artillery, money. Money spent on the campaign trail, Continue reading...

Introduction

Comcast and Time warner Cable are two competitors in the provision of cables in the market. The two companies are selling the same product in the market on very competitive market forces. The two companies, therefore, merges in order reduce the competition and working together to achieve the same goals and objective since they provide the same products. When these two companies merge, the levels of competition in the market will reduce effectively enabling them to have almost full control of the market through monopoly. The mergers will be able to determine prices and provide products to the customers Continue reading...

Business Report based on Excel Sheet workings and calculations

For the application of this paper, it is required that a comparative study in different scenarios be conducted to understand the implications of economic models and pricing theories on two products – brand X and brand Y. The data for this paper has been collected from actual supermarkets and by using analytical techniques it would be seen how the marginal cost, revenue and other economic functions react when the market scenario changes. These two brands – X and Y, are available in two versions, one is the regular version and the second one is a light version or the lite version.
Continue reading...

This case deals with the story of Apple Inc. in 2010. In spite of the great recession that had hit the United States in 2008, Apple Inc. had celebrated the record quarterly revenues and sales of its computer, smartphones and tablets during the third quarter of 2010. The company’s quarterly revenues of $15.7 billion were its highest ever quarterly sales figure. Apple had sold 3.47 million Macs, 3.3 million iPads and 8.4 million iPhones during the quarter (Marino,L. & Gamble,J.2010. Apple Inc. in 2010. c153). Although the sales of its flagship iPod declined from the previous quarter, Continue reading...

Why It Is Bad for Air Canada Monopoly in Air Business in Canada

Introduction
Since the Canadian Airline was bankrupted in 2001, thus Air Canada became the only giant airline in Canada and monopoly in the air business for over a decade. According to the Air Canada’s Annual Information Form 2012 that Air Canada occupied approximately 55% market share of domestic air business and 37% for international flights (excludes flights to the US) departure from Canada (Air Canada’s Annual Information Form, 2012). However, throughSkytrax servers that the Air Canada show low satisfaction for its services due to incredible high price, poor staff services and maintenance and high frequently delay even Continue reading...

Benefits and Costs of Competitive Market Structures

Competitive market structures, such as perfect competition and monopolistic competition, have the benefit that efficiency is high. Sellers aim at providing high quality goods and outdoing one another to attract and retain consumers. This is beneficial to the consumers who enjoy high quality of goods. Furthermore, the prices of goods are affordable as sellers aim setting prices that will attract more clients. Consumers experience a higher purchasing power with the same level of income. Consumers enjoy a wide range of goods courtesy of the sellers’ efforts in branding. The high quality and wide variety of good at affordable prices Continue reading...

The development of Russia had many historical turning points. These changes were mainly connected with such political figures as Lenin, Stalin, Khrushchev, Brezhnev, Gorbachev, Yeltsin, and Putin. The Soviet economy depended on mostly political decisions but not economic programs. Although the basic economic system in Stalin, Khrushchev, Brezhnev eras remained unchanged, there were some peculiarities in these periods. The effect of Stalin’s policy had a profound impact on people and the state. In 1928, the Communists instituted the first Five-Year Plan. It dealt with such aspects of development as an industry, consumer goods, agriculture, transportation, communications, health, education, Continue reading...

There are four main market structures namely monopolistic competition, perfect competition, monopoly, and oligopoly. Perfect competition denotes situation where there are many sellers without variation within the product, no influence, or effect on price, and no price tag to exit or enter the market. Monopolistic competition market is the most common category of market structure. Monopolistic competition denotes many sellers with slight price variations within the product, less influence on cost that rely on advertising, and a low entry cost to the market. Oligopoly denotes market structure with few sellers having different products, actual cost of entering the market Continue reading...

Business Ethics Antitrust Law

Business Ethics Antitrust Law

Introduction

The antitrust laws aim at ensuring that all businesses in a given market play by the same rules. This is so because businesses in a free market may achieve the near-monopoly status via their own merits such as creating better production processes, offering the best quality service and decreasing costs among others. However, antitrust laws set vivid boundaries for fairness in the business by prohibiting practices that control free trading. It also restrains dominant firms from abusing their market position. The antitrust laws offer regulatory review of business mergers, acquisitions and joint ventures to ensure Continue reading...

The film, Walmart: The High Cost of Low Price is a documentary that was filmed in the year 2005. It paints a picture of negative business practices perpetrated by Wal-Mart. The film is a compilation of interviews conducted with former employees, the company’s executives and other small business owners. The film was directed by film director named Robert Greenwald. It was produced by Brave New Films. The director makes use of statistics as well as footages containing interviews so as to avail an objective analysis of the impact that Wal-Mart has had on both individuals and the larger Continue reading...

IS THE WORLD ECONOMY BECOMING MORE GLOBALIZED, MORE INTERNATIONALISED, MORE WESTERNISED OR MORE NEOLIBERAL? DISCUSS

Introduction
The world economy is a contemporary topic of study in the current century because of its uncountable benefits. People need to understand the economic situation of the world to foster local, regional, and international development. There are numerous benefits of understanding the economic trends in the world. Understanding the world’s economic trends enhances an individual’s purchasing powers, economization, and creating a platform of countering the effects of any economic problem such as recession and depression (Cannan, 1976: 34). From the past experiences, it is notable that the world economic recession affected many people and institutions. Although Continue reading...

Following the American Psychological Association’s Guidelines

Introduction
Pricing strategy is an important decision for the companies. Price means the agreement or the balance point between suppliers and demanders. In another word, price exhibits who is (are) stronger in the market; it is the most important indicator in the market. The price occurs depending on the strength of the side in the market. The companies would like to have more power, and having more power in the market happens through controlling the price. Thus, if a company or a group of companies can control the market price, then they get the monopoly or oligopoly power. Subsequently, Continue reading...

Introduction

When the unemployment increases above certain limit, then it becomes extremely important for the policy makers to return people to their work. They find out the ways to bring business to the markets so that more and more people can be employed. However, this is only possible if the government, policy makers, politicians and economic development experts emphasize much more on the development of entrepreneurs or small businesses. According to Helfand et.al,(2007) in order to sustain generous benefits to society and combat prevailing unemployment throughout any economy the government has to undergo very daunting task of introducing policies Continue reading...

Why must Apple pay attention to the business cycle when planning to sell more products in China?

Innovative design, information technology and international competitiveness are the possible three phases of Apple’s business success. Apple did not invent any of the products, but made its name by reinventing its products through stylish design and cutting edge technology. The company has become market leader for products like iPod in U.S and several other countries. In China’s case, Apples’ I pod market share is less than 8 percent and Mac’s market is less than 1 percent. The company needs to pay attention to the business cycle when planning to increase sales in China because its market Continue reading...

In recent years, the American public have been increasingly inundated with media that is owned and operated by businesses with the express purpose of increasing profits, rather than the purpose of providing the average citizen with information and news. In Market, Media, and Democracy, Baker postulates that there is a purpose for journalism in the context of a democratic society, and that American journalism has, by and large, lost the ability to serve that purpose. Baker suggests that there has been a movement in media and journalism that promotes the idea of giving the people “what they want” in Continue reading...

American Public University

Economies of scale are a term used in the science of economics. Economies of scale explain the relation between efficiency and volume of business. If the cost of business increases parallel to the increases in the volume of business, then this is called negative economies of scale. If the increases in the volume cause decrease in the cost of business, then this is called positive economies of scale.
An important example in the transportation industry is the public transportation. Economies of scale are an essential term to be taken into consideration in the public transportation. Some municipalities prefer a Continue reading...

Though depicted as democratic, contemporary societies are from equal in certain respects since there are gender, sexuality, and income-based inequalities that can keep talented workers from being employed or stimulate their creativity as a means of working their way from the ranks. While some types of inequality may prove beneficial, some require revising for society’s sake. The point is that giving a chance for self-fulfillment particularly to poor, albeit talented lower socio-economic groups, women suffering from historically established marginalized social status, and the representatives of sexual minorities has its pros and cons.
First and foremost, social equality giving Continue reading...

[Document title]
[Document subtitle]
Since 2000, Syria’s economy was being managed centrally. Supported by the IMF and the World Bank, the structural adjustment program was used by Syria. The five-year plan started in 2006 and ended in 2010. Changing the economic strategy to a liberal market led was the main purpose of the program.
The contents of the plan were based on five main purposes. 1. Respecting the human rights, 2. The rule of law, 3. Making sure the society participates in the political process, 4. Preparing the economy to a social market, 5. Making sure the government Continue reading...

Market structures Franchise firms are granted the rights to operate their businesses in particular locations. They include companies dealing with fast foods, automobiles, financial services, cleaning and other products. The MacDonald’s is one of the largest franchise firms operating in the restaurant industry. The company deals in fast foods, with over 35000 branches worldwide. The firm, just like any other businesses is faced with stiff competition, but it has remained in the company due to the business strategies it employs to beat the competition. It advertises its products on the billboards, television, radio, newspapers, and it is involved Continue reading...

Introduction

This paper is going to describe one of the most popular games in the world – “Monopoly”. The game was founded in United Stated, created by Parker Brothers. It gained its popularity in 20th century, and became one of the most played games in the world. The major idea behind this game is to build a monopoly (to become the only owner of the businesses) and become the most successful and powerful businessman in the game. Moreover, the main task of the player is to lead other players to the bankruptcy. However, the most fascinating merit of this game is Continue reading...

- Throughout this course we have analyzed the class structure, monopoly capitalism (the dual economy), economic concentration of the media, the increasing essential role of advertising in these processes, and the relation between the capitalist class and the state. How have these structures and processes evolved with the introduction of the internet as part of the US communications infrastructure? Has it significantly changed the political economic structure of capitalism to call it "revolutionary"? Has it moved journalism any closer to serving as a public good in achieving the normative goals of democratic communications theory noted below?

Introduction:
The internet Continue reading...

- If Adam Smith were faced with the problem of procuring donor organs, he might suggest that we would be better off relying on donors’ self-interest rather than their benevolence, and advocate a market solution to distributing this scarce resource. Karl Polanyi, however, might argue that society would be harmed by allowing the market to displace the gift relationships created by voluntary donation. Although both died before successful organ transplantation was possible, use what you have learned of their theories to state the position you think each would take on whether and why organ donations should be organized on Continue reading...

[Class Title]

Introduction
This paper would like to discuss Ryanair’s business strategy and how it is linked with the company’s financial accountability. As stated by Friedman, a business’s primary accountability is to increase its profit. Apparently, financial accountability does not only relate to providing accurate reports and financial statements to avoid fraud. An equally important concept of financial accountability is on how it relates to managing company resources, expanding on strengths and how it effectively uses accounting tools to develop strategies that would provide economic benefit for the company. However, economic forces can sometimes become confusing. Continue reading...

The fundamental rule of economics is that it is a study of interaction of various market forces for utilization of the limited resources towards the satisfaction of unlimited demands of the society. The interaction and power of the forces of demand and supply determines the nature of the market. Microeconomics is the study which deals with the interaction of the individual demand and supply forces. The nature of such interaction and the relative influence of demand and supply forces would determine the kind of competition that exists in the market i.e., perfect competition or imperfect competition. The paper has Continue reading...

Economics 15: Research paper

Markets – late 19th Century/early 20th Century
Monopoly, Oligopoly and Trusts
The late 19th - early 20th century was the time of rapid development of American industry. In 1895, the majority of industries were competitive with no dominating companies. As a result of intense competition, many weak and small companies “disappeared”. Large and successful capitalistic associations based primarily on a system of participation got the name of trusts and corporations. One after another, the industries occurred in the hands of small groups of entrepreneurs, who used any methods to achieve complete control over these sectors of the economy. By 1904, Continue reading...

Discussion Question

A monopoly exists when a particular person or enterprise is the only supplier of a particular commodity. Monopolies are thus characterized by a lack of economic competition to produce the good or service and a lack of viable substitute goods. There could be two ways monopoly can occur - Natural monopoly and Pure monopoly (Kaplow, 2010). Natural monopolies occur since it is cheaper and more efficient to have the firm alone usually due to the very high infrastructural and start-up costs. This mostly happens with utility companies eg. electricity, water, gas, rail – as an effect of the need for Continue reading...

Introduction

Today’s airline industry is defined by various established corporations. Each of these airline corporations has their own routines and operational characteristics. This means that diversity is at its peak in the airline industry as the case among other corporations from different sectors of the economy (Lerrthaitrakul & Panjakajornsak 2014). The benefit of diversity has been mainly attributed to the particular employees, customers and the communities that are served by the airline corporations.

Characteristics of Diversity

In history, the scope of diversity in the airline has continued to widen with time. Today, one can easily notice the various aspects that identify and distinguish Continue reading...

Introduction

Economic consequences are extremely essential for the sake of an economy, as it is the only thing through which the power of economics of a country will get appreciation and upper hand in the market (Angermuller, Maingueneau & Wodak, 2014). Escalating stock market recognition, increasing economic power, Gross Domestic Product and Per Capita Income are some of the important aspects that found interactive and effective in the entire field of economics and management (Angermuller, Maingueneau & Wodak, 2014).
In terms of significance, the subject of economics has its diversification in different themes that will be considered accordingly in the picture. The Continue reading...

The United States district court for the District of Columbia is a case that was brought against Anheuser-Busch InBev SA/NV (ABI) to oppose the acquisition of Modelo group by ABI. It was brought up since the government felt that the proposed merger was violating the law through illegal ownership or acquisition of another firm. In addition, the government felt that the acquisition was threatening fair competition in a free market, and the consumers would suffer most as a result of the merger.

Facts to the Case

- The case involved two beer companies in the United States, which were ABI and Modelo Company. Continue reading...

International trade

Technology is a critical factor in production and international trade. The competitiveness of a country correlates with the level of technological development. Posner’s technology gap model explains the trade that exists between an innovative country that comes up with a new technology and the country that imports products from the innovative country. According to Posner, a country that has a technology lead will benefit from international trade so long as it keeps the lead. Due to the economic differences between countries, technological advancement and product innovation do not take place simultaneously in countries (Krugman & Obstfeld, 2012).
Innovative countries Continue reading...