What Is Perfect Competition Promotes Market Efficiencies

Markets are typically divided into four sectors; perfect competition, pure monopolies, monopolistic competition and oligopolies. There are two factors that influence which sector an industry fits into, one being the number of competing firms and the other being barriers to entry. Commensurate with these are different pricing options and strategies undertaken by various firms to reach optimal profit maximization. Altogether, each market contains specific intricacies which effect supply and demand and ultimately management’s response to each. Competition fuels growth, and while one market might regulate competition by its very nature, other markets must carefully weigh the cost of competition and what other firm’s reactions to it might be. Regardless of which market a business fits into, managers ultimately care about profit maximization which occurs at different levels defined by supply and demand. The following discussion highlights differences between each segment and how management must interact with the market in order to succeed. A market in which perfect competition occurs provides many unique characteristics favoring both manufacturers and customers. This purely hypothetical notion of perfect competition promotes market efficiencies primarily through â€Å"delivering satisfactory levels of good and services at minimum cost to consumers who are most willing and able to pay for them.† (Samuelson Marks, Managerial Economics, 2015) The creation of this market categoryShow MoreRelatedAllocative Efficiency and Dynamic Efficiency1114 Words   |  4 PagesEfficiency is to fulfil the needs and wants of consumers by making optimal use of scarce limited resources. There are several meanings of efficiency and all are linked to how well a market shares scarce resources to satisfy consumers. The two of the terms within efficiency going to illustrate are allocative efficiency and dynamic efficiency. Allocative efficiency Allocative efficiency looks into the goods and services that match the changing consumers’ needs and preferences, reflecting on the priceRead MoreBenefits Of Competition Among Firms Delivers Benefits And Performance Within Business1354 Words   |  6 PagesIntroduction Competition is considered one of the main driving factors of innovation and performance within business. But before we can fully assess the benefits to society of competition between firms, we must first ask, what is competition? Competition has been described as the rivalry between firms selling similar products and services with the goal of achieving revenue, profit, and market-share growth. This essay will answer the question, â€Å"Assess the extent to which competition among firms deliversRead MoreThe Decision Of Department Of Justice703 Words   |  3 Pagesmerging is to reduce the cost as low as possible at efficiency scale level. This reason also to promote consumers and producer’s social welfare. However, some mergers films could change their market characteristic after merging (The FTC). The FTC added that vertical mergers had a difficult experience to keep the market with competition. After merging, the result could be a negative result that will affect other competitors or it calls â€Å"reduce competition or eliminate competitors.† When merger films’ priceRead MoreTypes of Competition1000 Words   |  4 Pagestypes of market structure: monopoly, oligopoly, monopolistic competition, and perfect competition. Although the list of market structures can be virtually unlimited, these four types are considered to be the basis for understanding the principles of market performance in different market conditions. Each of the four types of market structures possesses its benefits and drawbacks. In any of these markets, an entrepreneur can develop a strategy appropriate for conquering a part of the market niche. AlthoughRead MoreArgument Against Perfect Competition Theory Essay1551 Words   |  7 Pages3.0 Argument against Perfect Competition Theory Theory of perfect competition has severe shortcomings that limit its application in business. Generally, its assumptions fail to hold in the real world, which makes the theory implausible as discussed below. Firstly, it assumes that buyers and sellers are price takers in the market. As such, it presumes that there are many buyers and sellers that are insignificant and equally small for the conditions of perfect competition to exist. However, in eachRead MoreThe United States Healthcare System1683 Words   |  7 Pagesthe health system.4 In the article tiled Envisioning Free Market In Health Care, Schansberg questions the level and extent of government control, and whether such control should be relegated to the federal, state, or local level. Ultimately, one thing everyone would agree to is the desire to enjoy better health without breaking the bank, and fortunately, the free market system promises to provide it. Legislative Proposal The free market health care system would empower the consumers by providingRead MoreImportance Of Economic Market Structure3611 Words   |  15 PagesImportance of Economic Market Structure In today’s economy, before an investor or any organization makes a strategic decision to begin production of a product, a market analysis is done to get vital information and to thoroughly understand the domestic or international demand, current suppliers, entry and exit barriers into a market, and the cost of producing a product or service. From gathering this information a firm can identify the market structure the product will enter, find out potentialRead MoreImportance Of Economic Market Structure3664 Words   |  15 Pages Importance of Economic Market Structures Kevin Green Economics 204 Principles of Microeconomics Charles Fanning 8-3-14 Importance of Economic Market Structure In today’s economy, before an investor or any organization makes a strategic decision to begin production of a product, a market analysis is done to get vital information and to thoroughly understand the domestic or international demand, current suppliers, entry and exit barriers into a market, and the cost of producing a productRead MoreAdam Smith : The Father Of Modern Trade And The Free Market1258 Words   |  6 PagesSmith is widely regarded as the father of modern trade and the free market. His avant-garde ideas are presented in An Inquiry into the Nature and Causes of the Wealth of Nations, a masterwork of political and economic analysis published in 1776. The general thesis of Smith’s argument is that it is in the best interest of countries to manufacture or maintain a â€Å"perfect liberty† in their economies, raising worthwhile questions of what this notion of liberty entails, and where it originates. To understandRead MoreEssay about Railroad Deregulation in Eu and Us1605 Words   |  7 Pagesfree competition, starting with the most profitable segment of the business, freight transportation and the passenger portion later on. Deregulation is the removal or simplification of government rules and regulations that constrain the operation of market forces. Deregulation does not mean elimination of laws against fraud or property rights but eliminating or reducing government control of how business is done, thereby moving toward a more free market or competitive market. It promotes competition

Walmarts policies and values - Free Essay Example

Sample details Pages: 2 Words: 645 Downloads: 4 Date added: 2019/08/08 Category Business Essay Level High school Tags: Walmart Essay Did you like this example? Walmart is the worlds largest retailer. Like many other companies, Walmart may have started out with good intentions but failed to deliver due to numerous ethical violations. Walmarts founder, Sam Walton, has long stood by his dream of providing low cost prices for consumers. Don’t waste time! Our writers will create an original "Walmarts policies and values" essay for you Create order Numerous lawsuits in which Walmart is accused of poor employment practices and wage law violations where in some instances employees were forced to work without pay, required to work overtime and during scheduled breaks, and failed to properly compensate employees for hours worked, exploitation of workers, including child-labor laws, sexual discrimination in regards to its promotion policies and pay rates, and inadequate health care options. Walmarts objective was to keep labor costs down and management was key in overseeing that those objectives were met. Some were compensated for their loyalty to the corporate objectives, others fell victims for fear of being fired or demoted. Walmarts unethical behaviors seem to repeat a common theme amongst a large number of corporations both in the private and public sector. Unfortunately, the ethical issues Walmart faces are all too common. There were some former Walmart employees told their stories about how Walmart underpaid them. As an example, Joyce Moody, who used to be a Walmart manager, said that the company threatened to write up managers if they didnt bring the payroll low enough (qtd. Dicker 81). They forced the employees to work off the clock or deducted employees hours in the time sheet. Walmart has been accused of sexual discrimination in regard to its promotion policies and pay rates between its male and female employees. On June 22, 2004, Walmart became part of the largest class-action sexual discrimination lawsuit claiming that female employees received 6.2 percent less on average than male employees for similar jobs and that even though a large percentage of women held the majority of positions, only 33 percent held management positions at Walmart (Stanwick Stanwick, 2009). In the article Wal-Mart Female Employees Try Again for Sex-Bias Class Action, Jordyn Holman presents the lawsuit between Walmart Stores Inc. with a group of women who believe that they were unequally treated and faced gender discrimination during their employment with this company. She highlights that the defendants claim that they were not treated equally compare to other male workers, in which they were paid less and denied opportunities, in the complaint filed in Floridas federal court. She notes that this lawsuit is a part of Dukes and Walmart Stores Inc. case in 2001, which is acknowledged that the company had a kind of sex-bias over women in promotion, pay, training and job assignment. This case was representing for 1.6 million Walmart female workers. Besides that, she also lists that these cases are just a part of other 2,000 claims that were filed with the U.S. Equal Employment Opportunity Commission for sex-bias in pay and promotions at Walmart. Continually criticized for its healthcare polices, Walmart has taken some initiative in finding common ground in regard to this ethical dilemma. Walmarts healthcare plan was 40 percent lower than the average for all other United States companies and 30 percent lower than the average for the retail industry (Stanwick Stanwick, 2009). Walmart could change its position by re-examining other companies healthcare plans and at least meeting some of the industry standards met. The fact that the case study claimed that 5 percent of employees were on Medicaid, 46 percent of employees children did not have health care coverage and chose to enlist in their spouses healthcare plans shows that how little Walmart was offering for healthcare was less than desirable (Stanwick Stanwick, 2009). Walmart has gotten a bad reputation for its unfair employee policies and discriminatory practices, which demonstrates that the company is focused more on profits rather than social benefits. The company should manage to improve its policies and values and focus more on its contribution to the society. Therefore, Walmart does not exemplify the way business should be conducted.

9/11 Cause Effect - 1279 Words

â€Å"The planes were hijacked, the buildings fell, and thousands of lives were lost nearly a thousand miles from here. But the attacks on the World Trade Center and the Pentagon were an attack on the heart of America† (Newman). For every cause there is an effect, and unfortunately the effects of 9/11 are disturbing. I like to say that everything happens for a reason, and the reasons of 9/11 still continue to puzzle the people today. The attacks on world trade center and pentagon on September 11 2001 were tragic and devastating not only for the victims, but all the people of United States of America. The tragic losses will forever haunt the mind of who ever lived to witness this heartbreaking event. On the Tuesday morning of September 11th,†¦show more content†¦Nicholas Greek Orthodox Church. At least 200 people fell or jumped to their deaths from the burning towers landing on the streets and rooftops of adjacent buildings hundreds of feet below. Some occupants of ea ch tower above the point of impact made their way toward the roof in hope of helicopter rescue, but the roof access doors were locked. 2,606 people died from the Towers collapsing (www.wikipedia.com). At 9:37 a.m., the hijackers crashed American Airlines Flight 77 into the Pentagon in Arlington, Virginia. Flight 77 crashed into the Pentagon’s western facade, killing the 59 on board the plane and 125 military and civilian personnel inside the building (â€Å"9/11 Memorial timeline†). A hundred and six are severely injured in the ensuing fire. Within 30 minutes of two planes hitting the World Trade Center twin towers, American Airlines Flight 77 departed Dulles International Airport bound for Los Angeles. The Boeing 757 was hijacked and crashed, loaded with 10,000 gallons of fuel, at 345 mph into the west side of the Pentagon. The five-story Pentagon is made up of five pentagonal structures arranged in rings. The plane took out light poles in the parking lot, hit the ground just outside the outermost ring of the Pentagon, turned up on its wing, and penetrated the E ring midway between corridors 4 and 5Show MoreRelatedCauses of Psychological Trauma and Its Effects on Y oung Arab Americans Post 9/111066 Words   |  5 Pagesincidents prior the terrorist attacks were 28. In the immediate year after 9/11, 481 incidents were reported against the Muslims and Arabs(FBI 2002). The hate crime statistics of FBI conforms a staggering increase of 1617 percent in such a short period of time. The Arab Anti-Discrimination Committee (ADC) reported that over 700 violent incidents were ruthlessly targeted against Arab Americans within the first 9 weeks after the 9/11(Ibish 2003). These incidents included physical violence, death threatsRead MoreEffects of 9/11 on American Economy Essay625 Words   |  3 PagesSeptember 11 attacks were set of four terrorist attacks controlled by al-Qaeda, an Islamic terrorist group. On September 11, 2001, four aircrafts were hijacked by the terrorists; two of the planes hit Twin towers in New York, third hit the Pentagon and the fourth one crashed into a field near Shanksville, Pennsylvania (â€Å"9/11 Attacks†). The Septe mber 11 attacks had several long-term negative effects that include Social effects, Psychological effects, Physical health effects, Economic effects and manyRead MoreThe Effects Of Islamophobia On The Past And Present1326 Words   |  6 Pages Islamophobia began when the 9/11 terrorist attack occurred. After the 9/11 attack the development of the fear of Islamophobia began. In September 11, 2001, there was a terrorist attack and that took down the Twin Towers (Holman Silver, 2011, p. 483). Thus, this is a point of significant because this was the beginning of the major crisis of Islamophobia in America. People of America began to develop detestation for Muslim individuals. The presentation of the 9/11 act even three years later expressedRead MoreAnalysis Of The Book Why America Slept By Gerald Posner1535 Words   |  7 PagesDaniela Reynoso October 17, 2014 Capron Online CRJ 115-05 In the book, Why America Slept: The Failure to Prevent 9/11, by Gerald Posner he argues that the act of terrorism that occurred on September 11, 2001 could have and should have been prevented. He presented a powerful case of how stupidity and misdirected priorities made America an easy aim for terrorists. Gerald Posner, the author of the book was a former Wall Street Lawyer, award winning investigative journalist and bestselling author. PosnerRead MoreAirline Industry : A Financial Crisis Essay1686 Words   |  7 PagesAfter 9/11 many airline companies will be facing a financial crisis that will shape America banks, stock pricing and insurance company’s community. Airline industry after 9/11, will make many changes to foreign policy and national policy, â€Å"the hardest hit business was the airline industry, which suffered major economic damage† (to, H. and Lee, D. (2005). I choose this topic because many Americans really don’t know how 9/11 crippled airline industry. The terrorist attack on September 11, 2001 wasRead MoreThe Effects Of Hysteria On The World Trade Center Essay1148 Words   |  5 Pagestheir lives today both mentally and physically. Opinions like,â€Å"9/11 lead to mass hysteria because it was a horrible, sudden tragedy that many people did not see coming†(Maravilla,Perez,Avina, Pg 1). The long term effects of this incident were unnerving. The leaders of this society had to change how they protected this country and had to alter their immediate opinions of a certain people, in fact most people had to as well. The cause of the hysteria was just after the events occurred when the airRead MoreThe Impact of the 9/11 Terrorists Attacks1091 Words   |  5 PagesSeptember 11, 2001, at 8:36 A.M. Eastern Standard Time, terrorists flew American Airlines flight 11 into the North Tower of the World Trade Center. Then at 9:03 A.M. Eastern standard time terrorists flew United Airlines flight 175 into the South Tower of the W orld Trade Center. The main men who helped to organize the attacks were Osama bin Laden, Khalid Sheikh Mohammad, Ramzi bin al-Shibh, Abu Turab al-Urduni, and Mohammad Atef, which all are associated with the al-Qaeda (Wikipedia, September 11 Attacks)Read MoreZeitoun Rhetorical Essay1440 Words   |  6 Pageschallenges. After 9/11 Muslim families, like the Zeitouns, face many problems living in America. Eggers wants to inform other Americans on the situation of Muslim living in the United States, present day. People who are uneducated about the Muslim religion need to be informed on how similar lives are of other people all around the United States. These people throw out stereotypes and aim judgments wrongly at the Zeitoun family. Unjust treatment of the Zeitoun family is a cause of assuming and stereotypesRead MoreThe Terrorist Attack On The Twin Towers1661 Words   |  7 Pagesattack on the Twin Towers. Christopher Peterson and Nansook Park, writers of A Positive Psychology Perspective On Post-9/11 Security, says, â€Å"Our ongoing study of character strengths has found that post-9/11, people reported that they were more likely to display the theological virtues of faith, hope, and charity†(Peterson). Which is a clear reminder of how people acted during and after 9/11. As a small example of how Americans went on that day to help each other James Johnson, the editor of Community PreparednessRead MoreInnocence Is Lost As An Effect Of War And Causes Trauma After1732 Words   |  7 PagesThe theme states that innocence is lost as an effect of war and causes trauma after, which is emphasized through the theme’s application towards the different characters. For instance, Rahela in the beginning of the book is brought in as a baby, but develops a sickness as well during the war. The war causes the family of Rahela to have less and less resources to take care of Rahela. The war directly affected Rahela in her life through her sickness, but she is taken to America to be taken care of

Cases harvad free essay sample

In September 1976 William Jaeger, a member of the partnership that owned Freemark Abbey Winery, had to make a decision: should he harvest the Riesling grapes immediately, or leave them on the vines despite the approaching storm? A storm just before the harvest is usually detrimental, often ruining the crop. A warm, light rain, however, will sometimes cause a beneficial mold, botrytis cinerea, to form on the grape skins. The result is a luscious, complex sweet wine, highly valued by connoisseurs. The Winery Freemark Abbey was located in St. Freemark Abbey’s grapes came from an ideal climate in the central and southern parts of the valley. Winemaking Wine is produced when the fruit sugar, which is naturally present in the juice of grapes, is converted by yeast, through fermentation, into approximately equal molecular quantities of alcohol and carbon dioxide. Sparkling wines excepted, the carbon dioxide is allowed to bubble up and dissipate. We will write a custom essay sample on Cases harvad or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page The wine then ages in barrels for one or more years until it is ready for bottling. By various decisions during vinification—for example, the type of wooden barrel used for aging—the winemaker influences the style of wine produced. The style adopted by a particular winery depends mainly on the owners’ preferences, though it is influenced by marketing considerations. Usually, as the grapes ripen, the sugar levels increase and the acidity levels Professor William Krasker prepared this case as the basis for class discussion rather than to illustrate either effective or ineffective handling of an administrative situation. Copyright  © 1980 by the President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685 or write Harvard Business School Publishing, Boston, MA 02163. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. 1 This document is authorized for use only in Introducci? n a la administraci? n (Iouri Gorbanev) 2014 by Ana Carmenza Neira from January 2014 to July 2014. 181-027 Freemark Abbey Winery decrease. The winemaker tries to harvest the grapes when they have achieved the proper balance of sugar and acidity for the style of wine sought. The ripening process is variable, however, and if the weather is not favorable, the proper balance might never occur. Several different styles of Riesling (more accurately, Johannisberg Riesling) are on the market. If the grapes are harvested at 20% sugar, the wine is fermented â€Å"dry† (all the sugar is converted to alcohol and carbon dioxide) or â€Å"near dry. † The resulting wine, at about 10% alcohol, is light bodied. If the grapes are harvested at 25% sugar, the winemaker can produce a wine with the same 10% alcohol but with 5% residual sugar; this wine is sweet and relatively full bodied. A third and rare style results when almost-ripe Riesling grapes are attacked by the botrytis mold. The skins of the grapes become porous, allowing water to evaporate while the sugar remains. Thus, the sugar concentration increases greatly, sometimes to 35% or more. The resulting wine, with about 11% alcohol and 13% residual sugar, has extraordinary concentration, and the botrytis itself adds to the wine’s complexity. Freemark Abbey had already produced a botrytised Riesling from its 1973 vintage. Jaeger’s Decision Problem From the weather reports, Jaeger concluded that there was a fifty-fifty chance that the rainstorm would hit the Napa Valley. Since the storm had originated over the warm waters off Mexico, he thought there was a 40% chance that, if the storm did strike, it would lead to the development of the botrytis mold. If the botrytis did not form, however, the rainwater, which would be absorbed into the grapes through the roots of the vines, would merely swell the berries by 5-10%, decreasing their concentration. This would yield a thin wine that would sell wholesale for only about $2. 00 per bottle, about $0. 85 less than Jaeger could obtain by harvesting the notquite-ripe grapes immediately and eliminating the risk. Freemark Abbey always had the option of not bottling a wine that was not up to standards. It could sell the wine in bulk, or it could sell the grapes directly. These options would bring only half as much revenue, but would at least avoid damaging the winery’s reputation, which would be risked by bottling an inferior product. If Jaeger decided not to harvest the grapes immediately in anticipation of the storm, and the storm did not strike, Jaeger would probably leave the grapes to ripen more fully. With luck, the grapes would reach 25% sugar, resulting in a wine selling for around $3. 50 wholesale. Even with less favorable weather, the sugar levels would probably top 20%, yielding a lighter wine selling at around $3. 00. Jaeger thought these possibilities were equally likely. In the past, sugar levels occasionally failed to rise above 19%. Moreover, while waiting for sugar levels to rise, the acidity levels must also be monitored. When the acidity drops below about 0. 7%, the grapes must be harvested whatever the sugar level. If this happened, the wine would be priced at only about $2. 50. Jaeger felt that this event had only about . 2 probability. The wholesale price for a botrytised Riesling would be about $8. 00 per bottle. Unfortunately, the same process that resulted in increased sugar concentration also caused a 30% reduction in the total juice. The higher price was therefore partly offset by a reduction in quantity. Although fewer bottles would be produced, there would be essentially no savings in vinification costs. The costs to the winery were about the same for each of the possible styles of wine and were small relative to the wholesale price. 2 This document is authorized for use only in Introducci? n a la administraci? n (Iouri Gorbanev) 2014 by Ana Carmenza Neira from January 2014 to July 2014. Freemark Abbey Winery 181-027 Winery Label 3 This document is authorized for use only in Introducci? n a la administraci? n (Iouri Gorbanev) 2014 by Ana Carmenza Neira from January 2014 to July 2014.