Monopolistic Competition versus Monopoly Essay Example | Topics and Well Written Essays - 1500 words

Monopolistic Competition versus Monopoly - Essay Example Monopolistic competition is comprised of a group of producers with identical products. The competition between the producers is not determined by the prices of the goods they supply but rather by how differentiated their products are (Salvatore, 2006, p.238). In this kind of competition the producers that are involved take the price that the rival producer is charging and use it on his own product not considering the consequences of the price. The scenario is different in a monopoly. Here, a single firm is the sole supplier of a given product as is the case when Wonks bought up the individual competitors and joined them to make up a single firm. The main characteristic of a monopoly is that the producer has a higher market share than that which is expected within a perfect competition. Another characteristic of the monopoly set up is the lack of substitute products in the market denying the consumers a choice. In this paper, we are going to analyze the consequences of a monopolistic competition being transformed into a monopoly. The hypothesis developed is; analyzing the effect that transforming a group of companies in a monopolistic competition into a monopoly will have on consumers, government and the company. Discussion In order to better understand the transformation, a closer look at the characteristics of both a monopolistic competition and a monopoly is required. In so doing, one can then draw parallels and differences that arise. In a monopolistically competitive market, a firm acts as a monopoly does in the short run, however in the long run, the market resembles a perfect competition since there is entry by more competitors and the gains accrued by having highly differentiated products diminish as does the possibility of the producers gaining economic profits. Consumers are very aware about the qualities of the products that the rivals offer since the differences are not evidenced by price. This model therefore is characterized by well informed custom ers and the producers rely on brand uniqueness to trigger a brand loyalty in consumers. In this model, there is no barrier to entry or exit. The model can thus be attractive to a large number of producers with identical products as there are no rules against entry. Likewise, there are no rules that may hinder a producer exiting the market when it is no longer attractive. Lastly, producers exercise a certain degree of control over the prices they charge. Although the control they have is limited, a producer can decide to price his products differently from the market price. The government can usually intervene in a monopoly in order to accomplish a determined goal or simply to cushion the consumers against extortion. Otherwise, when a monopoly is not coerced to perform in a certain way, the most typical goal is to maximize profits. The producer accomplishes this by producing few goods and charging them at a high price. The producer is thus a price maker in contrast to one in a monopo listic competition Monopolies often have barriers to entry where other sellers find it extremely hard to enter the market (Burkett, 2006, p. 155). This may be due to the structure adopted by the monopoly that discourages competition or may be sanctioned by the government. The major characteristic of a monopoly, however, is the fact that only a single producer is present in the given market. Here, it is assumed that

Accounting Evaluation And Forecast Essay Example | Topics and Well Written Essays - 2250 words

Accounting Evaluation And Forecast - Essay Example Carter and Usry mentioned that â€Å"In Reality, planning and controlling are simultaneous, cannot be separated, and an interconnected process†. Within this elaboration we will evaluate performance of the â€Å"Aberdare - Super Service Mini Market† and furthermore describe Income Statement and Balance sheet forecast for planning purposes. According to the financial ratios, Aberdare posses an overall weaker performance, compare to the Pernarth mini market. The only ratios that exceed Pernart mini market are sales/operating assets ratio and the interest cover ratio. The sales/operating assets ratios present a slight lead on Aberdare’s effectiveness on using its operating assets to produce sale, while the interest cover ratio display Aberdare’s better performance on taking advantage of debts to finance operations. However, financial ratios should not be used as a sole instrument of measuring performance. According to available data, Aberdare’s sales in 2004 are amounted to $ 1,250,000 and the operating profit is $ 217,000. This has a relatively significant difference compare to Pernarth mini market, which produce a sales number of only $ 1,000,000 and operating profit of $ 190,000. Thus, in actual numbers, Aberdare mini market contributes more income to the business. Pernarth According to the financial ratio, Pernarth is overall better than Aberdare mini market. The ratios indicated that pernarth has a better performance in terms of: 1. Effectiveness of operation, displayed by the Operating Profit/Operating Assets ratio, Sales/Fixed Assets ratio, and Sales/Current Assets ratio. These ratios describe that Pernarth uses its assets more effectively to produce sales and profit. 2. Efficiency of operation, displayed by the Operating Profit/Sales ratio, Cost of Sales/Sales ratio, Sales/Stock ratio, Expenses/Sales ratio, and Sales/Stock ratio. These ratios describe that Pernarth's require less cost and expenses to produce equal sales number and profits compare to Aberdare's. 3. Liquidity of the mini market, displayed by the Interest Cover ratio, Gearing ratio, Current ratio, and Quick ratio. There ratios describe that Pernarth mini market require less debts compare to Aberdare mini market to run the business. II.2. Weaknesses Aberdare As stated before, compare to Pernarth, Aberdare mini market display a slightly poorer performance. Most of the ratios display only small difference between the two store, however, significant different appears on Sales/Current Asset ratio, Sales/Stock ratio, Interest cover, Gearing and Quick ratio. The Interest Cover and Gearing ratio indicate that Aberdare has too much debt within its financial structure. The Sales/Current Assets ratio, Sales/Stock ratio and Quick ratio on the other hand, describe that the mini market employ too much current asset on the current year, especially too much stock. Pernarth The mini market is superior according to any measurement of the financial ratios, however, in real numbers, the mini market does not seem to generate as much sales and profit as Aberdare. Thus, relating to the fact that Pernarth is the most profitable

Homework1 Essay Example | Topics and Well Written Essays - 500 words

Homework1 - Essay Example In addition, it has opened the country for more foreign investment despite local opposition. This move differs with the way the US government handles infrastructure in its country. The US government invested heavily in its local infrastructure making every part of the country available for trade (Sharma & Mukherji, 2013). c. The Indian government is trying to control the level of involvement of foreign investors in the local trade. This system tries to benefit the local people as the government works to their interest. On the other hand, the system has harmed foreign investors as they find it difficult to access the produce despite the amount of resources at their disposal (Sharma & Mukherji, 2013). d. Wal-Mart would be good for India because of its experience in procuring produce from the small farmers in upgrading a poor supply chain. It has shown success in many countries including Mexico, China, and Brazil (Sharma & Mukherji, 2013). a. There has been constant pressure that resulted to low price on Chinas products. Since the US does not pay an extra amount to cater for a clean production system, China producers do not include cleaning cost in their production (Spencer, 2007). b. With a high production cost, there would a high pricing on an item. However, with a market that requires low pricing on goods despite the cost of production, the company would lower its production cost to match the market price. Instead of spending to treat the wastes, the Chinese producers opt to releasing it in the rivers, reducing production cost (Spencer, 2007). a. Internet connection is expensive for some families who have to meet other needs. Despite this, rise in technology has taken root in education, being a disadvantage to those students without an internet connection (Troianovski,

Business Formal analytical report Research Paper

Business Formal analytical report - Research Paper Example In addition, the report has proposed a plan that will be followed to carry out the research plus the schedules on how the research will be carried out. I hope you find this report helpful in regards to lowering employee turnover and improving customer service at green park hotel. If you have any questions or comments regarding my recommendation feel free to contact me at (814) 862-7480. I hope you are going to approve this report to enable me and my teams research this problem concerning Green Park Hotel which will bring back its glorious image. Green Park Hotel, in the past, used to run its services smoothly and there were no major problems within the business. Currently, Green Park faces a big problem of high employee turnover and many complaints from customers concerning service quality. Customers for the entity used to leave good comments at the end of most services they received from the hotel. However, things have changed in the recent past with the most notable transformation being high employee turnover. In fact, the hotel replaces employees almost on a weekly basis. Moreover, the hotel has lost a huge stake in its market capitalization. Competitors are drowning a huge part of the once large market. Customers have hurled several complaints at our employees, and some have even gone ahead to publicize how some of our services have deteriorated. The report has defined the problem at hand, which is lowering employee turnover and improving customer service at Green Park Hotel. Thereafter various alternative solutions have been given, then there is an argument for the solution which satisfies the criteria best and finally a conclusion and recommendation follow respectively. I am writing to seek your approval to come up with a report for lowering employee turnover and improving customer service at Green Park hotel after an intensive research. On completion of the research, the operational management team for the hotel will receive the

Daniel Richter's Facing East from Indian Country. Book Report Essay

Daniel Richter's Facing East from Indian Country. Book Report - Essay Example In the course of this era, some of the aboriginal groups changed to try to fit in the American society, and although Indians changed, they did not forget their language and their traditions. This essay will discuss how initial contacts involving the Europeans and Native Americans occurred in earlier days. Christopher Columbus, an American author, was born in 1451 and died in 1506. Columbus reputation has for long had controversies, with the fact that his achievement in navigation cannot be alienated from violence that represent the European contribution to the new world. Columbus discovery of America led to destruction of most of the native groups found in America at the time of discovery. Columbus arrived in America while trying to explore the Asian markets, north Americas native people, populated most part of the continent. The connecting of the eastern and western regions marked the foundation of an organized history, a process known as Columbian exchange. This involved a substitu tion of goods, for example, crops across the Atlantic Ocean. This distorted the economies of the world; Native Americans approved animals such as, horses and cattle. Foods such as, tomatoes, potatoes, and corn were brought in by these populations and have so far been embraced worldwide. Jacques Cartier came from the French court to explore North America, and in Chaleur Bay, he encountered aboriginal people who were the Micmac people. Their meeting was the first time the French and the natives traded furs. At first, the aboriginal people were friendly, but they changed their attitude and became hostile when they realized that the foreigners had come to interfere with their existence. Cartier tried to establish peace among the people since his arrival. Prior to the coming of Christopher Columbus, it was thought that the aboriginal people did not have any history. In contrast, these people had developed a culture, which was not written; they displayed their culture through song, dance and other artistic performances. Though Columbus claimed to have discovered America, many inhabitants had already settled in for many years. Columbus’s arrival marked an era of contact Europeans and Native Americans that went on for an unusually long time. Captain John smith’s interactions with Indians were because of his relationships and dealings with their most influential leader, Powhatan. He had earlier been captured by Powhatan; this led to the progress of their relationship. They formed an alliance in which smith would provide the colonists with food, this later developed to hostility of the highest degree. By the time John Smith, left Virginia there was a conflict between the English and Powhatan. As compared to other Europeans at that time, John Smith seemed to be open-minded about the natives, referred to them as social, and referred to their leaders as kings. John smith, was welcoming and persuasive, he even tried to integrate into the communities he visited , learned their language. His ability to persuade changed the attitude of Powhatan towards him. In his speech, Powhatan pleads with John Smith for peace, his words indicate anxiety and doubt surrounding the arrival of white settlers, and foretell conflict between the Native Americans, and Europeans that would have influence on the history of both groups. He wants the uneasiness and

Marketing Plan Assignment Example | Topics and Well Written Essays - 2000 words

Marketing Plan - Assignment Example This paper is bringing a report on how marketing solutions assist a brand for its productive and sustainable growth in the market. The report will imply marketing models of analysis and the frameworks that could help launch a selected product in a feasibly selected market. The product selected is â€Å"solar energy systems† which are proposed to be launched in the demanding UAE. The aim here is to apply marketing concepts in order to enable the successful launch of the selected product. The first section of the report will bring the constructive UAE market analysis and the second will imply marketing strategies for enabling successful establishment of the product. The objective is to build the prospect for the brand and its product, by applying all possible successful marketing schemes. With the 2020 scenario, UAE is looking out to revive its business industry. There is a multiple level of governmental plans to make the place a hub for business establishers. The trend of industrial and business growth is massive and at the great numbers as quoted by modern day researchers in UAE. This is showing a rise of demand in the power sector where there are thoughts circulating to bring alternate energy solutions, which are efficient, economic and to the most environmental safety. The need of the market is extensive as the bulk number of offices, production facilities, and factory warehouses are currently operational in UAE. They are requiring efficient power generating systems, systems that could cut the cost, meet the demand and ensure environmental safety. Initiatives are already there to find the most workable alternate energy systems. This to cut dependency on natural gas power generation, that is expensive and much effort taking. Apart from all, it has been assessed that electricity consumption in UAE is far much at the greater rates than in Europe, North America or Asia. In this alarming state, the most workable

Strategic delivery of change Essay Example | Topics and Well Written Essays - 1000 words

Strategic delivery of change - Essay Example He later became the director of the company in 1986 where he renamed the company WPP. WPP became the largest marketing and Communication Company worldwide by 1998. Organic growth and strategic combination enabled the company to achieve this position. The company is of good importance to the public in terms of environmental conditions. The raw materials and other resources used by the company are wastes, which could have polluted the environment. The studies indicated that the problem in many companies is how the company is recruiting the employees. Employees are not recruited as per their qualifications. This is because after the interview the recruited employees have lower grades than those who are left out. I worked in the company as part time employee and I have experienced how the employees are recruited. There are employees who have served in the company for a long time without being confirmed. This is because new employees are admitted to larger positions in the company leaving the other employees unconfirmed though they are qualified. For one to be employed in the company, it depends on what you have and whom you know in the company. Employees in the management positions are recruiting their friends and relative even if they are not qualified for the positions. This will lead to poor performances in the company, which might even lead to collapse of the company. This problem in the organization is brought by long serving employees in the management positions. This makes them ignore the rules and regulations of the company and exercise their duties as they wish. When it comes to recruitment, employees in the management position will consider their friends and relatives are first making all process unfair. The managers employ their own people, but they conduct the interviews only for formality in the organization. This makes the employees in the organization to be incompetent. This is because they cannot perform their duties as