Policymakers in the government can respond to the monopoly problem by trying to make industries more competitive, regulating the behavior of monopolies, turning some private monopolies into public enterprises, or do nothing. Price discriminate means the exactly same product could sell to different consumers for different prices, even though the costs of producing for the products are the same. Price discrimination is impossible when product is sold in competitive markets. For a firm to price discriminate, it must have market power. There are three lessons to be learned about price discrimination are price discrimination rational strategy for a profit-maximizing monopolist, price discrimination requires the ability to separate customers according to their willingness to pay, price discrimination can reduce the inefficiency inherent in monopoly.
In short run profit maximization will increase however in long run it is harder to increase companies profit because they will need perfect information in order to prevent the risk of the market. According to reality in most of times big companies work for society, to get a brand image and name lowering prices, use child labor and pesticides in order to create lower cost and therefore increase their profit. Sometimes companies make polices in order to get subsides as low carbon emission. As a result more consumers are demanding these products. In the short run firms may not increase their profits because the cuts in prices but if they achieve this in long run they may experience maxim profits.
Essentially all advertising as we now know it is emotionally manipulative, but whether this is harmful or not is highly questionable. For the sake of analysis, that advertising creates a market, new needs, and generally encourages consumerism will be assumed to be true. These facts on their own could be debated until the end of time, but to focus only on analyzing the ethics of manipulative advertising, some assumptions must be made. If this is true, then it is also true that advertising and production are necessary for prosperity. If advertising has a direct effect on consumerism and production, then advertising is essentially creating jobs and markets and helping people make a living.
Another external threat includes economic slowdown. The economy can play a direct role in the success of an organization, and should be monitored accordingly. Another external threat is currency changes which can affect business and sales in other countries, another area that should be monitored closely. With limitless external opportunities in markets online CanGo has room to expand in multiple markets outside of online gaming, books, and the music industries. With online market growth the opportunities for CanGo are endless, a very important factor to consider in the company’s future growth.
Even the dynamic efficiency refers to a market’s ability to promote cost-reducing or product-enhancing technological change. Technology affects real-world competition too. Though technological advance have no influence on perfect competitive firms, yet they have influence on monopolistic firms and oligopolistic firms. Such firms have funds for research and development. Such firms are searching for ways in order to beat up their respective competitors, and this leads them to enroll themselves in more advanced technologies.
A country can be a capital (or labor)-abundant nations and labor (or capital)-scarce nations which consider their comparative advantage in technologies, input productivity, and wages of labor. Free trade can bring a lot of advantage to us; however, it does not apply in real world. Tariff and non-tariff are the tools that use to trade protection or prevent the economy from undergoing adjustment during economic stagnation. Although tariff and other restriction can concede the economic losses and using resource with less efficiency, but protectionism argue that non-economic benefit such as a national security can more than offset those economic losses. Normally trade protection is use to secure domestic industry and labor union’s economy welfare.
Negative externalities occur when social costs are more than a private cost. Governments may usually intervene when negative externalities arise, this is to tax demerit goods, which are goods that have negative externalities and are over produced in an economy. However, the government may find other solutions much more useful, for example; they find it more effective to subsidise merit goods, goods giving out positive externalities and also provide more information about the effects of demerit goods to discourage them. If markets were over producing demerit goods, those selling those goods such as firms would be taxed, so raw materials for the goods may be more expensive or possibly the machinery. This would increase the costs and result in the firms passing on the costs to the consumers, this would increase the prices of the goods causing negative externalities and discourage them from being bought.
On the positive side, industrial regulation helps to pass on to the consumer the savings that monopolists enjoy as far as cost reductions while also preventing the restrictions on output and higher prices that are typical of an unregulated monopoly. Additionally, in cases where competition is not practical, a monopoly is encouraged so that consumers can benefit from the low per-unit costs, so long as the monopoly’s prices are regulated (McConnell, 2011). Some negative aspects of industrial regulation are the costs and inefficiency associated with it, and that it can also form a perpetuating monopoly, where a monopoly continues to exist much longer than a natural monopoly should. 3. Explain the entities affected by industrial regulation in terms of market structure.
One of the reasons companies outsource workers, and thus help imperialize foreign countries, is for cheap labor. Western corporations can have multiple sources for a given item, in order to allow continued production once one region realizes it is being treated unfairly and strikes. Oddly, it is argued that these companies could survive without any foreign connection—capitalism without imperialism. But, this would lower profits and prevent “advanced capitalism.” The decision to claim that cultures with what is considered modern technology is defined by military power rather than which culture is actually superior. It is this force that essentially created this gap.
* MGM has external factors and one of them is also competition, they started the innovation in order to compete. Manager has all the control over the innovation. Pressure for change * #1 Caesars has pressure for change due to bankruptcy and in other to reduce cost and the external factors for it could be the competition and bad management or CEO bad