A monopoly from start to finish Essay Example for Free

A monopoly from start to finish Essay During out studies this term we have learned a lot about a Monopolistic way a company is able to maneuver in the business market and I would like to refresh your mind by offering a clear definition. A Monopoly is a situation in which an entity, either an individual or an industry or organization, is the sole supplier of a particular good or service. As such, this supplier has no competition from other suppliers and is able to control the market value of the commodity. Some monopolies are government-enforced or controlled, while others form naturally or through company merger. According to our focus of this paper, we are asking about the long-run competitive equilibrium of the Wonks Company that was earning a normal rate of return and were competing in a monopolistically competitive market structure. One of the questions we must answer regarding this change in business structure is how the company’s shift to a monopoly will benefit the stakeholders involved. One of the stakeholders who may be involved is the government. Monopolies sanctioned by the government are called legal monopolies. These are considered coercive monopolies, meaning that other companies are forbidden by law to compete against them. Governments also maintain some control over monopolies through competition laws, which prevent monopolies from engaging in unscrupulous or anti-competitive practices (http://www. reference. com/motif/Society/advantages-disadvantages-of-monopolies). The second question is how a Monopoly will affect other businesses and after research it is quite obvious from the definition of a monopoly that other companies do not have to worry about competition from other companies in the same market. Consumers are affected by this change because they must either purchase the product or service from the monopoly or do without it. When a company transitions from a monopolistically competitive firm to a monopoly, there will be changes with regard to prices and output from both of these market structures. So, let’s take a closer look at how prices are affected when a firm becomes a monopoly. A common practice among some monopolies is price discrimination, in which the monopolist charges some segments of the population more than others for the same product or service, based on a higher need or a wealthier consumer base. This would usually be called price fixing which is an agreement between participants on the same side in a market to buy or sell a product, service, or commodity only at a fixed price, or maintain the market conditions such that the price is maintained at a given level by controlling supply and demand. When the monopoly is able to prevent buyers from reselling their product, they may be able to price discriminate to accentuate the effects of monopoly power. In my opinion the most important group that is affected by a Monopoly are the consumers. Monopolies can impact consumer prices in two obviously different ways, they can cause prices to drop so low that it forces companies out of business or it an cause prices to skyrocket making it difficult for consumers to purchase a product, neither being a good option for the consumer. If one business is the only provider of a product or service, the consumer is forced to pay whatever the price they demand. This can also lead to the company providing a low quality product or service without fear of losing business (Home, 2009). Since monopolies are the only provider, they can set pretty much any price they choose, regardless of demand, because they know the consumer has no choice. Is this sort of thing fair to consumers? Of course not, but it is how big business is able to stay on top of the market. For example, most people find that Apple products have an outrageous price tag, but I have come to learn that the quality of their products is outstanding and I estimate that Apple will continue to rise in popularity for years to come. It has also come to my attention that because Monopolies try to monitor the price of products they may resort to price discrimination. Price discrimination is sometimes defined as the practice of a firm selling a homogeneous commodity at the same time to different purchasers at different prices . Of course, I believe it is important to understand what and how price discrimination occurs. â€Å"Price discrimination exists when two similar products which have the same marginal cost to produce are sold by a firm at different prices. This sort of practice is highly controversial in terms of its impact on both consumers and rivals† (Price Discrimination, 2006, p. 1). There are many ways to accomplish these sort of conditions because the transactions surely need not be simultaneous; indeed, there is temporal discrimination, such as between Sunday rates and week, day rates, matinee and evening prices, peak rates and off-peak rates, season and off-season prices. To sell different qualities or products with different marginal cost at the same price, or to buy different qualities or factors of different efficiency at the same price, is also discriminatory. Based on all of this useful information we must also answer the question regarding which market structure is more beneficial for Wonks to operate in and will this market structure benefit consumers? In my opinion it is based on the level of quality and service of the products and how much consumers are willing to pay for the products they want to purchase. In a monopolistic competitive market the consumer may choose to purchase a substitute product for a lower price, but only if the consumer values price over value. Of course with a monopoly there may be only a few companies offering a substitute product. If one company’s product becomes too high in price, the consumer will eventually look for another brand that offers similar use. According to economist, the monopolistic competitor’s demand curve is less elastic than a pure competitor and more elastic than a pure monopolist. Monopolistic competitors have excess capacity which means that fewer companies operating at capacity could supply the industry output. It is my opinion that Wonks might operate more beneficially as a Monopoly than at a Monopolistic Competitive firm because they will not have as much competition to deal with and they can corner the market with value and price. Resources: 1. McChesney, F. S. , Shughart II, W. F. , Haddock, D. D. (2004). ON THE INTERNAL CONTRADICTIONS OF THE LAW OF ONE PRICE. Economic Inquiry, 42(4), 706-716. doi:10. 1093/ei/cbh091 2. Mainwaring, L. L. (1977). MONOPOLY POWER, INCOME DISTRIBUTION AND PRICE DETERMINATION. Kyklos, 30(4), 674. 3. https://www. fcsknowledgecenter. com/uploads/2011_Row_Crops_Industry_Perspective. pdf 4. http://academic. udayton. edu/lawrenceulrich/Stakeholder%20Theory. pdf 5. http://www. answers. com/topic/mergers-and-acquisitions 6. http://www. helium. com/items/1405663-what-is-a-monopoly-what-do-monopolies-do-how-is-the-economy-affected-by-monopolies 7. Case, K. E. , Fair, R. C. , and Oster, S. E. (2009) Principles of Microeconomics (9th ed). Upper Saddle River, New Jersey: Pearson Prentice Hall.

Personal Narrative - Mother Ireland :: Example Personal Narratives

Mother Ireland My family is proud to boast a long and rich history mothered by the Emerald Isle of Erin, which is Gaelic for Ireland. My family's clan was first called the O'Neills, and we inhabited the outskirts of a small village which now goes by the name of County Cork. We were minstrels, actors and musicians in the courts of our family's home for many generations. An interesting piece of recent history about my family is that we are closely related to the Kennedys on my father's side. My grandmother was one of the Davises, who in some way were related intimately to the Fitzgeralds, who were John F. Kennedy's mother's close family. And not too many people know this, but one of the young Kennedy ladies had the good fortune of marrying the famous Mr. Arnold Schwartzenagger. I wish to go even farther back, though, to the era of the Medieval Renaissance on the Isle, when my family owned their own lands and estate, and the head of our family was known as one of the first rulers of Ireland. Our family's castle and lands remain standing to this day, but are inhabited by no one for failure to pay twenty million dollars in back taxes over the past three hundred years. So now our family's castle sits as a tourist attraction on the coast of Erin, as a reminder of the rich and time-honored beauty it has brought and will always bring to the Island. Our family owes its debt of gratitude to one young man. The rule who was living in our family's castle at the time had two sons. At the time, having two sons meant that the ruler would have to entrust his lands and properties to one of them when he died. Since the ruler could not decide whom to entrust the castle to, he told them to have boat race around the shores of Roan Innish ("Isle of the Seals, a small island off the coast of Ireland). So it was determined that whoever was first to touch the shoreline on the other side of the island would inherit all of his father's wealth. Well, the race was long and hard, and the younger son grew so tired that he could not row one second longer even though he was so close to the shoreline.

Case Analysis: Ski-Right Essay

I. Background of the Case The case begins with Bob Guthrie, a retired physician and an avid skier, who realized that there was a need for a special ski helmet following the recent incidents that lead to serious head injuries for skiers. There were existing ski helmets in the market, but Bob believed that he had a chance to make helmets more appealing to the people, by adding new features. Bob took this idea as something that could not only be an outlet for his creativity, but as a way for him to make some money. He set out with the goal of making helmets that were attractive, safe and fun to wear. With this in mind, Bob came up with several ideas for his new helmet, which he named ‘Ski Right’. Bob wanted his helmets to be attractive, so they had to come in several colors and feature the latest fashion trends and designs. But aside from this, they also had to be fun and useful. To achieve this, Bob thought of putting a built in AM/FM radio and cellphone to the helmets, with controls in a pad on the skier’s leg or arm. Before proceeding to build the helmet, Bob thought of the possibilities of success and failure in his venture. He figured that there was a 20 percent chance that there will be an excellent market for his product, a 40 percent chance that the market will be good, a 30 percent chance that the market will just be average and a 10 percent chance that the market will be poor. With this in mind, he continued his plans. Bob found several companies that could help him build his helmets. Progressive Products agreed to be a partner in developing Ski Right and would share in the profits and losses. Bob also discovered Leadville Barts, who specializes in bike helmets. They could be of great help in the production of the helmets itself. Bob was also talking to Talrad TR, a radio company in Florida, who had experience in making military radios. They could assist in putting the AM/FM radios in the Ski Right. Finally, Bob was meeting up with Celestial Cellular, who could develop the cellphones. Bob Guthrie now has to take into consideration all this information in making the decision of how to make and launch his new product, with the intention of making the most money he can as possible and avoiding failure. II. Problem Statement Bob’s problem now is deciding which combination of partners would result in the best profits for his new product, Ski Right. His first option is to partner up with Progressive Products in developing the helmets. He also has the option to ask Leadville Barts to make the helmets, which will then be taken by Progressive Products for finishing. His third option is to contract Talrad TR to make the radios for the helmets, which will then be brought to Leadville Barts and Progressive Products. Bob’s fourth choice is to work with Celestial Cellular to make the cellphones which will be passed to Progressive Products for the rest of production and distribution. His final option is to forget about Progressive Products completely, contract the three other companies and hire some friends to assemble and market Ski Right. Other than choosing which of the options would be the best recommendation for Bob, the case also calls for us to compute the expected opportunity loss that Bob would have if he chose one option over another. The group also has to determine what the value of perfect information is, which represents the maximum that Bob should pay in order to get perfect information. The group will also identify if Bob was logical in his approach to setting up his business and making decisions. III. Model Development The objective of this study is to identify what would be the most profitable course of action for Mr. Bob Guthrie. Another objective is to identify the opportunity loss in this situation as well as the value of perfect information. In all of the options available to him, Mr. Guthrie calculated the possible profits or losses he would have for every possible state of the market. He also determined the probabilities of each of the states of market given. The information is shown in the table below. In order to meet the given objectives, the group will apply the method of Decision Making Under Risk due to Mr. Guthrie being aware of the probabilities of all outcomes. There is also a need to identify the possible amount of losses Mr. Guthrie may incur which means that gaining a perfect or accurate forecast would be beneficial to better clarify what is the best decision to take. V. Conclusion After applying the method of Decision Making Under Risk, based on the decision table used to sort out and categorize the information given, the group was able to analyze and interpret the results, and found out he best decision Mr. Guthrie could choose for the new product he’s about to make. After determining the EMV for each alternative, option 2 which EMV for $2,600, came out as the highest among the other EMVs. Next, the group was able to identify the possible amount of losses Mr. Guthrie may incur. After getting all the opportunity loss for each alternative, the one with the lowest value of EOL which is $14,300 is determine. The result is once again, option 2. This was made sure by getting the EVwPI and subtracting it to the maximum EMV, thus giving us the EVPI of $14,300 which is equal to the EOL we determined earlier. According to the option 2 which is getting Leadville Barts to make the helmets, and Progressive Products to finish them, LB had extensive experience in making bicycle helmets which gives Mr. Guthrie a higher chance of assurance in getting the job done right, especially that he considers the quality of the helmets to be produced. On the other hand, he’s facing a greater risk since he’s handing out to job to two different companies.

Selection of Quotes by Seretse Khama

I think that the trouble we now face in the world is caused mainly by the refusal to try and see another man’s point of view, to try and persuade by example — and the refusal to meet a rather passionate desire to impose your own will upon others, either by force or other means.Seretse Khama, first president of Botswana, from a speech given in Blantyre in July 1967. It should now be our intention to try to retrieve what we can of our past. We should write our own history books to prove that we did have a past, and that it was a past that was just as worth writing and learning about as any other. We must do this for the simple reason that a nation without a past is a lost nation, and a people without a past is a people without a soul.Seretse Khama, first president of Botswana, speech at the University of Botswana, Lesotho and Swaziland, 15 May 1970, as quoted in the Botswana Daily News, 19 May 1970. Botswana is a poor country and at present is unable to stand on its own feet and develop its recourses without assistance from its friends.Seretse Khama, first president of Botswana, from his first public speech as president, 6 October 1966. We are convinced that there is justification for all the races that have been brought together in this part of Africa, by the circumstances of history, to live together in peace and harmony, for they have no other home but Southern Africa. Here we will have to learn how to share aspirations and hopes as one people, united by a common belief in the unity of the human race. Here rests our past, our present, and, most importantly of all, our future.Seretse Khama, first president of Botswana, speech at the national stadium on the 10th anniversary of independence in 1976. As quoted in Thomas Tlou, Neil Parsons and Willie Hendersons Seretse Khama 1921-80, Macmillan 1995. [W]e Batswana are not desperate beggars...Seretse Khama, first president of Botswana, from his first public speech as president, 6 October 1966. [D]emocracy, like a little plant, does not grow or develop on its own. If must be nursed and nurtured if it is to grow and flourish. It must be believed in and practiced if it is to be appreciated. And it must be fought for and defended if it is to survive.Seretse Khama, first president of Botswana, speech given at the opening of the fifth session of Botswanas third National Assembly in November 1978. Lefatshe ke kereke yame. Go dira molemo tumelo yame.The world is my church. To do good my religionInscription to be found on Seretse Khamas grave.