2. Should they try to get a price higher than $40 per ton to improve profits? Why, or why not? Yes, they should try to get a price higher than $40 per ton to maximize the profit. As the variable cost is too high as we increase the production.
Sometimes the extent of competition within an oligopoly can be extremely high. It might be the case that in those oligopolies which do fact occasional extreme competition that the firms have an incentive to achieve productive efficiency and dynamic efficiency. It is an empirical matter whether a particular oligopoly industry does—or does not—active efficiency. No general conclusions are possible. http://economics.csusb.edu/facultyStaff/nilsson/personal/Capitalism%20Text/19-Oligopoly.pdf Evaluation of oligopolies Oligopolies are significant because they generate a considerable share of the UK’s national income, and they dominate many sectors of the UK economy.
These countries, which were considered developing nations or third world countries have emerged from the global economic crisis as the new face of world economic powerhouses. As the effect of monetary turmoil deepens, in Europe and United States; two conflicting economic theories and solutions for this crisis have emerged. One theory favors the “pumping of money” or stimulus money into the economy which in certain economists views represents a “stalled engine”, which needs more gas. The extra money means, people will have more money to spend, which in turn mean more demand for products which will lead to the creation of more jobs which will make the economy grow again hence stimulating the economy. The other theory is tightening of the belt or Austerity measures.
So was the case in a research survey conducted by Pew Research Studies (2009), Americans indicated that having a vehicle was a greater necessity than any other item. So with the demand for vehicles period at such a high rate, why not also strive to protect our environment as well. Essentially vehicles are required in order for us to perform the necessary tasks that are required to keep our cities and local governments running, but the harsh reality is that driving vehicles daily can increase the amount of pollution emissions in the air,
Analysis of car industry in the UK Recently, the surge of economic failure influence Britain's car industry deeply. And what really disappoints the industry is that increasing cost of motoring such as fuel costs make the situation worse. As the result of few new car brand enter in the market and second hand car market become prevalent now, competitive effects actually have changed to be more actively. This issue of the car industry arises even if there are rare evidence illustrate that recovery exists in car industry of UK (Neil, 2012). With accelerating of people’s income; buying a car is likely to be a popular tendency.
There is a failure to realise that long term better economic welfare also means general higher standards of living, as people have enough money to buy everything they need and some of what they want, competition is rife so drives quality up and prices down, and the government are able to take in more taxes from firms who are much healthier financially. This mass employment may lead to more jobs, but the workers themselves or the way they’re used is hugely inefficient. Another reason that labour production in the UK is so low is the lack of competition. There is a strong body of evidence that competition enhances productivity. So, with a lack of one there is a lack of the other.
Although United States may be in a recession and Vanilla Bicycles doesn’t offer the cheapest bikes around, averaging 7,000 dollars a bike, it hasn’t stopped bicyclist from buying high-quality American-made bikes. The company has an income of 300,000 dollars a year, earning 100,000 dollars in profit, which is more than enough to keep White from ever having to become a bike messenger again. This article reminded me of Chapter 2, Competing in Global Markets, due to the reasons of other bicycle companies that are imported into the country with a much lower resale value. Not only does White face competition from bikes made in China, but other American-made
This is as the economy is larger in developed countries, their currency appreciates and is much higher compared to less developed countries, thus labor is cheaper to be paid in less developed countries. As many companies carry out manufacturing off-shores, companies that refuses to do so would be left behind as their manufacturing cost would be higher and thus less profit is made. This is as said by David Manners where stated that as manufacturing in China and India is cheaper compared to most countries, and as globalisation is part of the economy now, it is best to welcome and not go against it. Due to this in 2000-2004, UK gained a
Nike has been criticized by many people since 1990s; it is considered as an unethical company due to its practices including child labor and workers’ exploitations (Davidjaxe, 2010). To begin with, in order to lower the production’s cost, Nike prefers the innocent labor, the child labor, especially in developing or poor countries. Philip Knight, the company director, excused that it did not use child labor, but several evidence contradict his statement. He said that the company has set the age standards; it does not hire children under 18 years old for footwear production, and 16 years old for clothing and equipments (Boggan, 2001). The most undeniable and worst case happened in Pakistan, a crucial centre for the manufacturing of exported goods.
The existence of democracy in North Korea is not a controversial issue most would bring up in a conversation talking about Kim Jong Un or some of the other oppressive systems of government in the region. The fact of the matter is that it’s not actually democracy. Democracy is described as choice by the people and in the rule book of the DPRK, their is no choice so what is really going on? Described by Time magazine, North Koreans are forced to vote for a leader that is predetermined by legislatures. Any citizens that are able to vote, do so in a way that does not represent democracy at all.