Essays on Economic Efficiency

The institutional affiliation

1. A monopoly is defined by many as the domination of one provider of a product or service on the market (Amadeo, 2016). Thus, a monopoly maintains an economy of scale when only one supplier enjoys all the market benefits.

There are a number of positive impacts of monopoly on the national economy (Amadeo, 2016):

Taxes paid by monopoly firms become the major source of the national revenue. • Monopoly eliminates the duplication and the wastage of resources what cause serious issues in many countries. Monopoly uses price discrimination which can strengthen the economically weaker sections of the society. However, there are some opinions criticizing this type of market organization. They identify the following negative ...

CHAPTER II

This chapter will seek to conduct an absolute inquiry into what makes up security interest laws in the United States. In order to lay the foundation for comparisons in subsequent chapters, the three main elements of the study of the Saudi system will be reviewed here in the context of U.S laws with an emphasis on California state law. The features of the California legal system will include the assessment of foreclosure rules and patterns in California. This will include a detailed fact-based evaluation of CCP580 (b), CCP580 (d) and CCP726 (a). The different components will enable the study ...

Characteristics of the transportation project

Transportation project is concerned with the problem of transporting different amounts of a homogenous product that are initially stored at different origins to various destinations. It is a logistics issue in which the product is transported in a way that minimizes the total transportation cost. A transportation project has various characteristics. One of the features of this project is that every destination demands a fixed unit of the product. Additionally, the project will have possible solutions if all supplies equal all demands. The total demand must be obtained from the sources involved. Also, the cost of transporting the products ...

Step 1:

This efficiency analysis will examine the efficiency of widen an intercity highway in Los Angeles from four lanes to six lanes with the intention of reducing traffic congestion. Already the existing highway has four lanes. However, due to congestion, the project team proposed the idea to widen the highway to accommodate six lanes.

Step 2:

In this case, the main purpose of the economic efficiency analysis is to determine whether the project is viable for its entire lifetime. Any major infrastructure works within a city are very expensive. In addition, infrastructure projects have a life expectancy and they are expected to ...

Britton and Lindsay (2005) argue that emergency management of the future should be grounded in five areas. What are the five areas? Provide a detailed answer. Economic Efficiency-economic efficiency is one fact that has led to the scrutiny cases in emergency management. The policies developed should be comprehensive and stable to counter any emergency issue. Partnerships- involves bodies such as the government and other private sectors to ensure a streamlining of activities that can easily foster the development of techniques that can be necessary for emergency management cases (Britton Neil, p.44). Governance-communities are vulnerable since a good number of ...

[Date: mm/dd/yyyy] The penalty rate incorporates the rate of pay that is granted to the employees for the services that are being provided under difficult conditions or unusual timeframe. The penalty rate is provided when employees work during weekends, overtime, night shifts, early morning shifts or public holidays. The penalty rate has been reduced as a strategic decision to increase jobs by means of providing opportunities to the new employees rather than dividing work within the existing employees (Daly, 2014). The current paper enlightens the dynamics of the penalty rate that tend to justify the penalty rate and analyzes ...

Goals of a well-functioning economy

A well-functioning economic system should ensure price stability. It should be able to control the rate of inflation such that the interests of both consumers and traders are met. High inflation rates negatively affect the consumer welfare while very low prices are detrimental to businesses. Besides, an economic system should ensure full employment. It must reduce unemployment rates to the levels at which all factors of production are engaged. The economy should also ensure equitable distribution of resources and production. The tax system should fair and equitable. A well-functioning economy should also enhance economic freedom (Colander 17). The economy ...

Perfect competition market structures are rarely in reality, but very important to examine in theory, since their characteristics are found with no any other market structure. For instance, perfect competition markets attain a level of efficiency which is not exhibited in less competitive markets such as monopoly, monopolistic competition, and oligopoly (Glader, 2014). A perfectly competitive market is a market structure in which there are many firms, freedom of entry and exit, homogenous products and perfect information. Economic efficiency is defined into; productive efficiency –in which firms are required to produce at the lowest average total cost possible, and ...

ISI Company

BACKGROUND Jim Willis is the VP (Marketing and Sales) for ISI, a US-based aerospace corporation. Jim is facing an ethical dilemma. According to Cox and Shawana (2008), Fred Ballard, Jim’s boss at ISI, has asked him not to disclose information on the changes in the launch dates of ISI’s satellite following an issue with the camera. Fred expects that the disclosure could have a huge negative impact on ISI’s current and future contract negotiations. The most important contract in question is an ongoing negotiation between HTC and ISI. The ultimate effect would be severe financial losses, ...

Legal research

Introduction Every business should abide by the business laws to remain competitive and relevant. Particularly, concepts surrounding the law of contracts, torts, and employment law guide most conflicts occurring in businesses today. However, businesses are faced with challenging situations that require precise understanding and interpretation of different commercial case laws and concepts. The lack of understanding of these basic concepts may cause businesses to suffer legal consequences arising from frequent litigations (Singh, 2007). The current paper analyses three events that happened at Wicked Theatres Group Ltd.’s theater. In doing so, the paper sheds light on the legal principles ...

The effect of mandated health insurance benefits on the market for labour if the workers do not place any value on these benefits and when they fully value the benefits. In the situation where the workers do not place value in the mandated health insurance benefits, the relationship between employees and employers will significantly change. This is because workers will not be willing to contribute towards the mandated insurance scheme. Moreover, employees may present inaccurate information regarding the size of their family, their income and other household information (Kasper, Riley, McCombs and Stevenson, 2009). Economically, mandated health insurance benefits ...

The reasoning behind the view of accounting for tort liability as the economic efficiency view is that through the use of the tort system in supplementing the market forces efficiency is either improved or reduced. This isdependent on the incentives that are created for the injurers as well as the victims. Any alteration on the tort system leads to tradeoffs that seem to improve efficiency. From the economic efficiency view the tort system can only be measured by how it is able to minimize the different types of costs (Fletcher, 1992).

The corrective justice view uses the reasoning that ...

Introduction

Urban sprawl is the expansion of cities based on low-density, single-use development models. On the other hand, compact development is based on a high-density model, where residential households are concentrated in high-rise housing developments that do not take up large areas of land to set up. There are obvious differences in the advantages and disadvantages of both models of development. As a consequence of these differences, there have been extensive discourses on which model is best suited for contemporary cities. Arguments about the merits of sprawl and compact development strategies are wide and varied. However, in recent times, they have become ...

Forum 5. Instructions: International laws and regulations must be followed in international hiring practices. Describe at least two major international laws or regulations that must be complied with prior to hiring employees in a foreign country. Labor laws has always been one of the main ways, in which modern states have tried to promote the use and identification of those principles and rights at work, which are established in the ILO Declaration of 1998. ILO Declaration “On Fundamental Principles and Rights at Work” indicates that all ILO member States, even if they have not ratified the Convention, are recognized ...

In a ‘perfectly competitive market’, a large number of perfectly informed consumers and firms buy and sell a standardized good without being able to influence its price. All agents are free to enter the market, and all can vote with their feet by leaving it. When these conditions are met, welfare analysis can easily demonstrate that economic surplus is maximized. This ideal situation can then be used as a benchmark to analyze various existing deviations from competitive conditions. The existence of market power is an important case in point. (Ahuja, 2010) The perfect competition is enough but not important for efficient in ...

Introduction

For a long time, Australia has always been outward-looking nation that is strongly engaged and involved with the rest of the world. The last two centuries have particularly witnessed Australia build strong as well as enduring ties with countries across the global landscape. The bonds between Australia and many countries across the world have been forged and facilitated through a variety of aspects that range from history, trade, common strategic interests, sporting events and so on. The nature of the Australian society has also played a great role in facilitating the forging of superb relationships with other countries. Twenty-eight percent of the nation’ ...

HOTEL MAN OF THE HALF CENTURY

Following the American Psychological Association’s Guidelines

INTRODUCTION 3

PERSONAL HISTORY 3 PERSONALITY TRAITS 5 HOTELS BEFORE ELLSWORTH 7 HIS CONTRIBUTIONS TO HOTEL BUSINESS 9 HIS CONTRIBUTION TO THE HOTEL MANAGEMENT IN MODERN TIMES 11 CONCLUSION 12

REFERENCES 14

INTRODUCTION He was an American influential and pioneering hotel businessman, born in 1863 into a poor family in Somerset County, Pennsylvania. Although he did not receive much from his family in terms of financial resources, he could manage to be famous of hotel development and management. He is known as the father of American Hotel. He made a great amount ...

Microeconomics

Answer 7) Allocative Efficiency: This is an economic efficiency where the producers try to satisfy the maximum want of the consumers. In other words, when the society achieves optimal distribution of goods and services, taking into account the preferences of the consumer, it is said to be allocative efficient. In the economic literature, it is defined as an economic state where the price of the product equals its marginal cost as at this point the price which the consumers are willing to pay is equivalent to the marginal utility they get from the product. Below is the ...

Economic Report about Current Commercial Gasifiers

GE Energy Gasifier GE Energy Gasifier uses the entrained flow, coal-water slurry feed, refractory lined slag and oxygen blown technology. The manufacturers at GE Energy have two variants, one with a radiant cooler and another full quench gasifier. Their products use a wide variety of fuels like low rank coals, pet coke, bituminous coal and other blends of pet coke. The design of GE Energy Gasifier emphasizes on operational eficiency. This is achieved through optimization of heat recovery and production of carbon monoxide. As espoused earlier, the GE Energy Gasifier predominantly uses the direct quench system. This design is not ...

Using Contemporary Policy Examples, Explain What the 'Three Faces of Power' Teach Us about Agenda Setting

Introduction Public policies reflect, on the surface, governmental decision making processes. At a closer look, however, contemporary policies are the result of direct and indirect pressures upon the public or upon political decision-making factors. Steven Luke’s “three faces of power” model includes the decision-making power, the agenda setting and the preference shaping power, explaining three strategies of modeling public opinion by exerting specific aspects of power (Sundstram, 2011). Agenda setting, also named the non-decision-making power of the three faces of power model is a sinuous strategy that various groups can use for placing their problems or their issue as ...

Americans see the country in the face of numerous economic development programs and schemes that have the potential of eradicating major economic and social challenges. The United States of America claims huge impact from technological advancements that have occurred in the country recently. Technology contributes to the American dream in a number of ways in all sectors. As much as some aspects of technology contribute to cultural and social erosion in the United States of America, majority of it leads to improved systems and better working environments. This paper analyzes the contributions of technology to the dream of American people ...

Introduction

International free trade and environmental protection have appeared mutually exclusive in the modern world. This has been more the case at the turn of the decade of the 1990s with the adoption of the General Agreements on Tariffs and Trade (GATT) in the Uruguay Round and the subsequent establishment of the World Trade Organization in the year 1994. Liberalization in trade has been touted as a major force of enhancing the economic welfare of the world. At the same period, there arose the concept of sustainable development which emphasizes on the environmental protection and the issue of sustainable development gained ...

The ideal of medical care is that it would be undertaken without regards to economics. Unfortunately, the real world demands that the costs of goods and services be taken into account. To argue that economics does not play a role in health care is naïve and betrays a sense of entitlement to other people’s hard efforts and hard gained intellectual and tangible resources. Treatments themselves are expensive. They are expensive to develop and often they are expensive to produce. Delivery is expensive too, because of the length of physician, nursing staff, and other healthcare workers educations. Furthermore the healthcare ...

Report

Executive Summary The economic evaluation of Medicare as system of efficiency in the U.S. insurance sector economy of scale is analyzed according to U.S. Senator Cantwell’s Affordable Care Act 2010, enacted as a reform measure to overhaul the existing Medicare fee-for-service payment system. The report addresses Medicare’s Value Payment Modifier (VPM) replacement of the former volume cost instrument used by the government agency, as well as the value-based index (VBI) to be used by Medicare providers within the national health care delivery system by 2017. - Introduction The report examines U.S. Senator Cantwell’s (2013) ...

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Introduction Japan has the strong reputation of being among the most developed nations in the world, and it stands out as the most technologically advanced one in Asia. Its prominence in foreign affairs greatly supplements its economic power, and such has enabled it to push its popular culture across different nations. Among notable aspects of Japanese culture include anime and manga (animation and graphic novels), J-Pop (Japanese pop music), food and fashion styles. Yet, while Japan is a nation that has sealed its importance in the international community, what remains phenomenal is ...

Introduction

Economics studies the rationality of human beings. They maximize on deriving the possible benefits from a resource constraint. Economics covers a vast area. The broad meaning of economics gives rise to sub branches of economics. It may either be international economics or domestic. International economics involves both international trade and finance. It explains the patterns of transactions and relations of citizens from different countries and their consequences. International trade section of international economics studies the flows of goods and services from the international suppliers and international buyers. International finance focus on the effects of the exchange rates and capital flows over ...

Abstract

This paper seeks to explore the relationship between the cost of capital and voluntary disclosures. The paper outlines the benefits of voluntary disclosure to firms, investors and the general economy and how these benefits are weighed. It describes the categories of voluntary disclosures and the factors considered in disclosure decisions. The paper will explain the term disclosure friction and there after show how this factor affects cost of capital. It also investigates the association between the risk related discount and the voluntary disclosure. The two equilibriums i.e. overinvestment equilibrium and the underinvestment equilibrium and how they are brought about ...

Abstract

This paper seeks to explore the relationship between the cost of capital and voluntary disclosures. The paper outlines the benefits of voluntary disclosure to firms, investors and the general economy and how these benefits are weighed. It describes the categories of voluntary disclosures and the factors considered in disclosure decisions. The paper will explain the term disclosure friction and there after show how this factor affects cost of capital. It also investigates the association between the risk related discount and the voluntary disclosure. The two equilibriums i.e. overinvestment equilibrium and the underinvestment equilibrium and how they are brought about ...

Suggest how an economist would approach the problem of alcohol abuse. Provide two (2) possible solutions to this problem. Include the four (4) elements of the economic way of thinking in your analysis. Economists classify every activity as either consumption or saving. Consumption means that the individual is depreciating investible capital while saving adds to the available capital for investment. Consumption is health to an economy only up to a given level, after which it deteriorates it. In this case, alcohol abuse is a consumption activity that has negative effect on economic growth. Based on this, an economist will handle ...

Equilibrium Price and Quantity

The earthquake in Japan has affected the supply chain in the world including those of cars. As a result, there would be fewer supplies until Japan recovers from the earthquake. (Miyoung and Jim) Figures 1 and 2 show the demand and supply curves of Japanese cars would have been affected by the earthquake. Figure 1 shows the demand curve of Japanese car demand. It is the typical demand for Japanese cars. Figure 2 shows the shift of the supply costs of Japanese car. The situation is not a simple case of low inventory. So, it is not just a question ...

Conservative vs Liberal Ideology

America is considered by many as the “Land of the Free”, wherein any person could practice his belief, ideology and affiliation without the need to fear the government from forced intervention. Civil liberties and human rights matter most for the Americans, especially under its Constitution. However, there have been chances wherein ideologies became the cause of conflict inside the country, which could be seen in the country’s two leading political parties: the Democrats and the Republicans. Conservatives supports the growth of capitalism and retention of traditional laws to sustain the growth of the country, while the Liberals support ...

Marketing concepts are approaches that are used by companies to market their products, satisfy consumer expectations and increase profits. Consumer expectations and preferences are the biggest influences of the choice of a marketing concept. In the process of satisfying customer needs, the company achieves its objective of making profits or increasing its market share. There are many concepts of marketing such as market segmentation, product cycle and customer satisfaction. These concepts are used in various industries because of their flexibility and effectiveness. Market segmentation aims at dividing the market into groups that have homogeneous needs. Product cycle model is designed ...

Introduction

This article “Mitt Romney's green-jobs criticism carries risks” by Nicholas Riccardi of the Yahoo News discusses the effects of “green jobs.” Congressman Mitt Romney criticizes President Obama’s “obsession” with “green jobs.” Basically, green jobs should lower the use of resources and/or ecological impact. Green jobs must also create jobs. In simple terms, it must create economic efficiency. The economic article will be explained in terms of the principal microeconomic concept such as the cost-benefit principle, particularly through opportunity costs. Microeconomics’ basic tenet says that there is always a tradeoff between capital, labor and natural resources (like energy in ...

The Morality and Legality of Insider Trading

Undeniably, the rate of unethical behaviors in international corporate organizations seems to have risen to an uncontrollable rate. For instance, insider trading that does not involve the abuse of dominant positions or manipulation of financial marks is often termed illegal but hardly immoral. Among the major proponents of insider trading are that it promotes the spirit of enterprise and economic efficiency but at the same time, it leads to unequally access to information and breach of fiduciary duty (Juan, 2011). It is highly believed that insiders are capable of undertaking strategic trading activities to prevent them from revealing their ...

Generally, during recession period, there are theories that are implemented to try and remedy the situation. The two major theories that have been utilized during the United States of America to try and save big businesses are: supply side economics and Keynesian theory. Arguments have been put across regarding the best theory that is capable of rescuing big businesses during the recession. According to Boskin, many have been in favor of Keynesian while others have been in favor of Supply-side. In this paper therefore, is going to investigate both theories arguing in favor of supply-side. This paper will also ...

(A)Principles of increasing/diminishing marginal returns. Principles of economics include returns to scale. Most firms experience increasing returns to scale when at the beginning of the business the costs in the long-run are decreasing this is so because a unit of the available resources produces more returns. On the other hand decreasing returns to scale in most cases occurs when the unit resources produce fewer returns. Organic products on the article exhibit increasing returns to scale, (Arthur, 2003). From the article companies such as wall-mart improved and became big firms this helped them to scale up, and make high ...