One Nation Under Wal-Mart an Example of the Topic Business Essays by

One Nation Under Wal-Mart Wal-Mart Stores, Inc was founded in 1962 by Sam Walton and it was incorporated in 1969. It first appeared on the New York stock exchange in 1972. It is the largest private employer worldwide. In United States, it has an estimated 20% of the retail grocery and 45% of the retail toy business. This makes it the largest grocery retailer that exists in United States. Wal-Mart has its operations in United Kingdom as ASDA, Mexico as Walmex and Japan as the Seiyu Co. Ltd. However in 2006, operations in South Korea and Germany had to be closed and sold by management because of a highly competitive market and sustained losses that it had incurred (Davies 1997). Need essay sample on "One Nation Under Wal-Mart" topic? We will write a custom essay sample specifically for you Proceed Our Customers Often Tell EssayLab writers: How much do I have to pay someone to make my essay now? Specialists suggest: Essay Help Provided Here With Beneficial Facilities! Cheap Essays Not Plagiarized Professional Writer For Hire Do My Assignment Best Essay Writing Company The Wal-Mart stores, division of the United States is the largest business subsidiary resulting in the 67.2% net sales of the fiscal year 2006. The Wal-mart stores, Inc, also operates under two segments: the Sams CLUB and the Wal-Mart stores segments. Supercenters, Walmart.com, neighborhood markets and discount stores comprise the Wal-mart stores segments. The neighborhood markets is comprised of frozen food, paper goods, pharmaceuticals, household chemicals, photo processing, dry grocery, bakery, meat, pet supplies, beauty aids and general merchandise departments (Shaw Barry 2007). Currently, Wal-mart is one of the largest companies in the world and has achieved much of its success in retail. It has more than 4,750 stores with an estimated 138 million shoppers who visit these stores weekly. The company has managed to conquer almost every corner of America increasing its strongholds in both the rural South and Midwest and also urban America. The companys marketplace is powerful such that it is estimated that 82% of the households in America purchase an item from Wal-Mart yearly. Households staples are controlled at 30% of the market, 15% and 15-20% of all magazines and all CDs are sold respectively. Wal-Mart is also behind the importation of 10% of all goods from China to United States (Shaw Barry 2007). Answers to Discussion Questions Question one I personally like Wal-Mart as a consumer because it is the largest retail company that exists in United States of America. I shop at Wal-Marts quite frequently because the prices offered at Wal-marts are cheaper compared to other retail stores in my area of residence. Apart from the low prices it guarantees to consumers, it also offers a wide range of products ranging from electronics, photo processing and toys to grocery products. These items are readily available at all times and at affordable prices. I like Wal-Mart stores because of the diverse activities that it offers to human mankind and other development activities globally. It employs about 1.8 million people worldwide in the more than 3,900 stores in United States of America and more than 2,799 stores in the west of the world (Shaw Barry 2007). Despite the cheap prices that Wal-Mart offers, I do not like its policies regarding its employees. This is because workers in Wal-Mart store earn low wages; they are also given low rates of the employee health insurance, cases of alleged sexism and a host of other issues. Question two There is a Wal-Mart store in my area of residence that offers a wide range of products. The impact of the store on the local community has been mixed. The Wal-Mart store has created both positive and negative effects on the local consumers hence changing consumer behavior as well. Wal-Mart store has had more of negative effects to my community as compared to the good things it has done for us. It has had much success on consumers part through the cheap and affordable prices of goods it offers hence attracting quite a large number of consumers who prefer to purchase from the store than purchasing from other stores. Another positive impact that Wal-Mart has created in my area of residence is employment generation to the local community. Its many stores that are spread throughout the state create many career opportunities to most people who are unemployed. However the negative impacts that Wal-Mart store has created in my community surpasses by far the good aspects that it has produced. Wal-Mart store has increased competition with the other business as a result of the lower prices it offers forcing other business to close down even though they were established long ago before Wal-Marts existence in the community. Buyers have chosen to go to Wal-Mart and this has greatly affected the sales of these other businesses that in turn make losses because of this. In other words, Wal-Mart has destroyed other local businesses in my area of residence. Despite the employment creation that Wal-mart offers, one employee turnover rate has been high in my community because of the low wage rate it offers to its employees. A part from the low wage rates, these employees have limited benefits given to them accompanied by the low rates of health insurance. This has resulted into consumer resistance that starts with the employees themselves. Because of th ese factors costs have been shifted to the tax-payers and other businesses that are forced to pay the underinsured employees of Wal-Mart indirectly. As a result of the poor pay that Wal-Mart offers to the employees in my community, these workers have been forced to rely on food stamps, public aid, housing vouchers and state health subsidies among other things. Moreover, due to the low labor costs it offers, the producers of consumer goods in my area have been forced to reduce their labor costs as well hence driving them out of business. The Wal-Mart store in my community has become unpopular yet it offers cheap prices for goods and services. It seems to work out for consumers who are only buyers of these goods but for workers, producers and other establishments, it has done more harm than good. I would support the idea of a rival new store to be opened in my area that will offer great competition to Wal-Mart. I would support any other new company that is ready to establish high employee standards than what Wal-Mart is currently offering. I will not be in favor of any other extra Wal-Mart branch opening in my community because Wal-Mart has low standards for its workers despite the low prices it currently offers for its goods and services. It has low business ethics regarding employees. Introducing another branch of its own will lead to monopoly practices in the community. Question Three I think that the rise to retail dominance by Wal-mart would impact the society negatively. Retail dominance means that Wal-Mart dictates other businesses as well as consumer behavior in a society. Competition is created between Wal-Mart and other businesses such as the supermarkets who cannot cope with the low costs of goods that Wal-Mart offers since they (supermarkets) get their goods probably at a higher cost hence lowering would mean making losses in their business. Rise in retail dominance will result to Wal-Marts dictation on what it offers both the consumer and employees in terms of quality of products and wages respectively. Dominance by Wal-Mart will just mean yet another evolution of capitalism and Walmartization in America. Capitalism is a type of economic system whereby a larger part of production and distribution is privately owned just like what we see in Wal-Mart. Business ethics in this case is bound to go down because of the dominance such ethics include: the labor practices and quality of life that will be offered to the employees. Therefore dominance creates capitalism and this means that Wal-Marts retail dominance will make the production and distribution processes to be entirely owned by Wal-Mart. Retail Dominance will have a negative impact on workers. This means that the policy of the workers will be determined by Wal-Mart workers will continue receiving low wages and there will be major job lay-offs. The turnover rate will be high and also the costs on the tax payer will be increased. Question four A retailer can become two large and hence powerful. This can be seen in the case of Wal-Mart as it controls the prices it buys goods with. The low retail price it offers has had major adverse effects on other businesses and it has introduced high costs to these businesses. This has exerted a lot of pressure on these companies. Wal-mart Company can be said to be a powerful company in the worldwide. A part from being the worlds largest retailer, Wal-Mart is also the largest company worldwide surpassing General motors, Exxon Mobil and General Electronic. It exerts its power for the purpose of establishing the lowest prices to its consumers. Wal-Mart has got the power to dictate prices, hence other business or producers have to lay off their employees or close their plants and therefore, they opt for overseas products. In conclusion, I agree that a retailer can become too powerful just as experienced in Wal-Marts case. Question Five In my opinion, I do not think the opposition of Wal-Marts expansion process is causing any interference with out market processes but it could be a part of a political process in that politicians tarnish the companys name to gain political votes. Politicians could be using the weaknesses of the company in order to gain their political stand and strength. On the other hand I think the opponents of Wal-mart have valid concerns. This is because Wal-Mart poorly pays its employees by offering low wages to them. Wal-Mart has made other businesses to close down because of the low prices it offers for its goods and the costs that it has increased on the part of the tax payer. All these have resulted into low standards that the company has created (www.fastcompany.com/magazine/77/walmart.html). Therefore it is important that Wal-mart Company keenly looks into these issues so as to create consumer satisfaction. References Davies, F., (1997). Current Issues in Business Ethics. Routledge. ISBN 0415124492. Shaw, W. Barry V. (2007). Moral Issues in Business (10th Ed.) Wadsworth Publishing ISBN 0-495-00717. Wal-Mart You Dont Know, Accessed on 9 July 2007, from https://www.fastcompany.com/47593/wal-mart-you-dont-know.

Age Of The Bosses Essays - Political Boss, Political Terminology

Age Of The Bosses Essays - Political Boss, Political Terminology Age Of The Bosses As industrialization caused cites to grow in leaps and bounds, political bosses started to take power. As the 19th Century came to a close, almost every sizable city had a political boss, or at least had one rising to power. Tons of immigrants from every part of the world began to pour into the major cities. Cities have had diversity in the past, but the huge diversity of the American cities was unique. The only thing the new immigrants had in common with each other was the dream of becoming rich and the poverty of their current state. Unfortunately, so many different people with so little in common often left tension between different groups on the edge of becoming violent outbreaks. The famous Tammany set the example early on of how to broaden it's own appeal to people of all races and ethnic groups. Not long after, the other bosses did the same. The bosses did much to clean up some neighbors and prevent violence, but of course it always had the ulterior motive of securing votes fo r their own power. Their corruption often lead to their downfall, such as William Tweed, who died in 1878, penniless and imprisoned. On of the main power gaining tools for the bosses was the ability to give employment to people. The people would sign onto these payrolls even when padded, since any employment was better than no employment. Another platform was the sale and regulation of liquor. Though becoming somewhat unpopular among some Americans, Europeans were appealed by the bosses' support of liquor. Also appealed were many middle class members of society who, though not needing financial aid, did enjoy the consumption of alcoholic beverages. Many businesses also were dependent on the local government cooperating with their operation and expansion. This expansion also attracted more people to the city, thus they fed and grew off each other, expansion of business and population. The boom in population meant that the city had to accommodate the new people and the services they n eeded. Yet history repeats itself, as greed and conventional thinking prevent the institution of social services that could have met the new needs and the governments began to loose control. The men who rose to power as the boss of their city were more than often a common man at birth who immigrated and seized the opportunity presented by industrialized cities. The bosses no longer exist today since public education has made for the smarter voter. Few immigrants with nothing to loose and everything to gain also contributed to the demise of the bosses. In the end, the bosses brought about the new style of municipal government, which still works today. Bibliography After the Fact

Planning, policy and financing of healthcare Research Paper

Planning, policy and financing of healthcare - Research Paper Example A system of monopoly in the provision of health insurance was therefore shifted from Daman, which was the largest player in the UAE healthcare insurance markets to a mix of regional, local, and international players. The shift has yielded positive results since today all people are covered by the mandatory health insurance. Transparency in healthcare funding has also been achieved creating a pathway for sound decisions in healthcare. However, there have been a number of challenges since the public-private partnership created a dominant player in the healthcare market. All in all, Abu Dhabi has set a good example that can be emulated by other cities and nations wishing to make reforms in health care access. Abu Dhabi is a city that has experienced rapid economic growth in the last two decades. Despite being the wealthiest and biggest city among cities in the United Arab Emirates, the government of Abu Dhabi faced a number of challenges. The first challenge was individual’s lack of significant access to healthcare; the city of Abu Dhabi comprises of high, middle and low income earners who are the majority. Given the meager amounts of salaries made by low income earners, access to good healthcare was a challenge. Secondly, government funded healthcare in Abu Dhabi lacked transparency. Consequently, medical services in public health facilities were perceived to be worse compared to services in private facilities. In order to get services in public health facilities, long waiting times were involved. Finally, there was overreliance of healthcare on public funding, whereas the burden could have been easier, if employers in Abu Dhabi helped in providing healthcare to workers. Administrative reform in healthcare in Abu Dhabi was initiated in 2005 when the Abu Dhabi health insurance law was passed. In 2006, by-laws associated with the Abu Dhabi health insurance law were enacted. According to the by-laws, every employer in Abu Dhabi was obligated to

Implication of National Innovation System Essay

Implication of National Innovation System - Essay Example l the levels among the individuals and organizations and the governments usually have a major influence on the innovations via the finances that they avail and the developments of institutions of further learning that will impart the knowledge on the people. The governments then require an outline that covers the concepts and an experimental basis that will gauge if and how their contribution of the public policy to the total innovation of the nation could be made better than it is (Hertog,  P., Remà ¸e,  S., & Organisation for Economic Co-operation and Development, 2001, p. 4). China has made advancements in a lot of things and competes with the US in a number of sectors and also in the military innovations in that they have developed new ways in which their military personnel will get ready and fight in a war so that they win it in a way that is modern. They have also made strides in the development of hardware and software technology for their organizations and also for the individual consumer in a world of innovation that can either be slow or fast and these innovations can happen at the same time or in a specified sequence (Cheung, 2013, p.188). China’s government made a histrionic move in its foreign and economic policy in 1978 and this changed the way that people looked at it from the business point of view making it become a profitable destination for multinational establishments that are from other countries outside China and the international business researchers (Kau & Marsh, 1993, p. 124). The Chinese government employed the use of the foreign direct investment in the 90’s with the intention of stimulating the rate of economic development and the achievement in the attracting the foreign business to start there is in contrast to the their own state owned enterprises that are in debt (Chen,  2011, p. 145). Even though all this that is going on is good for the investors, the unique characteristics of these environment and the implications that will

Reading assignment Essay Example | Topics and Well Written Essays - 750 words

Reading assignment - Essay Example In The Abolition of Man, C.S Lewis uses the example of The Green Book and its authors Gaius and Titius which is meant to provide English education for children (Lewis). Gaius and Titius basically created the following proposition, according to C.S. Lewis: â€Å"firstly, that all sentences containing a predicate of value are statements about the emotional state of the speaker, and secondly, that all such statements are unimportant†(Lewis). To Lewis, this is unacceptable and goes against the natural moral law as it teaches â€Å"the belief that all emotions aroused by local association are in themselves contrary to reason and contemptible†(Lewis). This means that a large part of the learning process in studying literature is being able to understand and interpret the emotions conveyed by the author of a piece. In turn, not being able to comprehend the emotional aspect or associating the emotions with something negative or of little merit, students are losing the lessons i n ethics, morals, and philosophy that often are interwoven with literature. By taking the emphasis off of this type of examination, the study of English and literature becomes much more scientific, clinical, and empty. Many of the important moral and philosophical lessons comes from literature and by threatening to take this aspect out of books or by placing less emphasis on it, the education system is not supporting the high morality that has existed in the Western hemisphere. Without this support, the moral and philosophical nature of the Western culture will further deteriorate and there will be a plethora of unreasonable citizens in its wake. C.S. Lewis continues his argument for natural moral law with providing evidence that society has lost objective truth and morality. According to Lewis: â€Å"Their skepticism about values is on the surface: it is for use on other peoples values; about the values current in their own set they are not

Contribution Of Summitry To Diplomatic Practice Politics Essay

Contribution Of Summitry To Diplomatic Practice Politics Essay In 1919, diplomatic practice as the world had known it was about to change. This change would be brought about by a culmination of factors, including but not limited to: advances in communication and transportation technology, the ending of WWI and, most notably, the coming together of world leaders at the inaugural Paris Peace Conference in January 1919. Two precedents were set during this conference: the establishment of the League of Nations (precursor to the United Nations) and the invention of the summit as a way of engaging in international diplomatic negotiations (Finch, 1919, p. 161). In this paper I shall focus on the effect of the latter on diplomatic practice nowadays. The conference is a good starting point when examining the role of summits in modern day diplomacy. Yes, leaders of government and heads of state had been meeting for years (Goldstein, 1996, pp. 23-25), but many leaders and delegates congregating on a global scale was truly a new phenomenon, one that would c hange the practice of diplomacy forever. In order to truly analyze the contribution of summitry, or the practice of engaging in summits to negotiate important issues, first, I shall examine the history of modern day summitry from its early beginnings at the aforementioned Peace Conference as well as the rise and unprecedented growth of summits as an option to solve a diverse range of global issues. I will scrutinize select past summits to see if they illustrate the effects of summitry. Then I will look at the broad picture and explain summitrys overall contribution to diplomatic practice. In the 1919 Paris Peace Conference, which was a twin byproduct of Woodrow Wilsons 14 points speech and Germanys desire to negotiate, the shape of diplomacy and international governance was changed forever with the establishment of the United Nations. This overshadowed the real reason the conference had been held: negotiations between the allied powers and the losers of WWI (Finch, 1919, p. 161). The conference also had another unintended consequence: the creation of the summit. A summit is, by definition, a meeting of heads of government to negotiate important or pressing issues. Summits can be planned yearly occurrences or impromptu conferences or meetings in which political leaders (at the highest level) meet for political purposes (Dunn, 1996, p. 20). In the resolution to create the League of Nations the following article states: 3. The members of the League should periodically meet in international conference, and should have a permanent organization and secretariat to carry on the business of the League in the intervals between the conferences (Finch, 1919, p. 170). This shows a concerted effort towards the establishment of using an annual international conference (i.e., summit) to resolve issues between states and to facilitate negotiations on pertinent issues. While the conference set the precedent of a diverse group of states meeting to discuss multiple issues, it also served the major world powers at the time. Under the name of the Council of Four, the USA, France, Great Britain and Italy were the only delegates to be meeting constantly throughout the entire conference, regardless of other sessions going on (Finch, 1919, p. 176). This demonstrates that the international balance was going to be maintained no matter how many other countries were invited to participate. This small allowance of extra importance and ability afforded by the conference allowed the diplomatic process of the past its first introduction to the impending paradigm shift. Traditional diplomacy (that of diplomats meeting diplomats) would meet its future where, much more often than used to be the case, heads of state themselves would do the negotiating and would meet with other delegates and representatives. This was the precise situation at the Peace Conference with President Wilson (USA), President Poincarà © (French Republic), Prime Minister Lloyd George (Great Britain) and Prime Minister Baron Sonnino (Italy), the Council of Four all in attendance, and participating in the negotiation of multiple issues (Finch, 1919, p. 168). This Council became the precursor to the G-5 who would come to dominate not only international relations but also diplomatic practice in general. The rise of summitry since that initial conference in 1919 has been astounding. There have been uncountable summits since 1919; the commonplace nature of their use has grown along with their importance. Summits have covered a multitude of issues and spanned regions and countries across the globe. In fact, it did not take long for the idea of summitry to take hold. Spurned by the outstanding representation of the original countries delegates, a conference convened in the United States in 1921-22. Although not as successful as the Paris Peace Conference, it still paved the way for future summits (Goldstein, 1996, p. 32). President Franklin Roosevelt followed Wilsons lead and attended multiple summits abroad thereby establishing the precedent of leaders of government venturing out to change foreign policy personally through their own diplomacy (Goldstein, 1996, p. 33). These two were the first in a long line of world leaders who would, through their interactions, negotiations and conferences at many sites around the world, help to shape not only the content but the process of diplomacy. While the focus of summitry over the years tended to be on the United States and the concessions that they intended to bring to the table, Europe has played a big part in the growth of summitry as a whole. In fact, the May 1960 Paris Summit between Russia, France and the USA focused on future European expansion issues and the direction and structure of NATO. It resolved key issues between America and Russia and led to drastic changes in Franco-American and Russo-American attitudes (Varat p. 102). The obstinate behavior and actions of Eisenhower, Khrushchev and de Gaulle, caused the eventual drastic failure of the negotiations, but despite this the summit itself would help to shape the history of diplomacy. The following passage describes what happened before the con ference closed: On 16 May, however, Khrushchev delivered the killing stroke to both the current summit and future ones when he launched into an overwrought tirade against American perfidy, berating Eisenhower for violating Soviet sovereignty and accusing him of wanting to start World War III (Varat, 2008, p. 105). The Hague Summit, December 1969, had an important impact on the future direction of summitry in Europe and is notable because it ratified summitry as a successful policy tool. Among other things, this summit was responsible for the creation of the European Monetary Union, negotiations on the enlargement of the European Union, and European political cooperation (Redmond, 1996, p. 54). This summit led to the decision, eventually to be brought forth and instituted at the Paris Summit in 1974, that it should institutionalize and regularize EU summits and hold them three times per year [although I should note that this practice was ended in 1985] (Redmond, 1996, p. 55). At the same time that European summitry was starting to stamp its influence on the diplomatic world, the then- recently un-colonized continent of Africa was beginning to recognize and utilize the process as well. From 1963 onwards, there has been a summit of African nations at least once a year, used to show unity on the continent and also to negotiate issues of importance to African states. This first conference in 1963 was held in Ethiopia, and is considered the most important African conference of the time, with 27 heads of government present and also creating the Organization of African Unity (Hodder-Williams, 1996, p. 136). Although, as Richard Hodder-Williams points out, there had been many meetings and groupings of African leaders dating back to 1918, this Organization and conference in 1963, showed the changing leadership and political dynamics in Africa as a whole (1996, p. 137). From these early beginnings until now, where summits cover a wide range of international problems (non state and state issues), the rise of involvement of summits in the area of international diplomatic negotiations and interactions has been phenomenal. The precursor to the present conference on Climate Change (in Copenhagen in December 2009) was the Earth Summit which was held in Rio de Janeiro, Brazil in June of 1992. It was, at the time, the biggest summit ever held, with 183 countries and over 40,000 observers and delegates participating in the process. The United Nations sponsored the event and the goal was to bring together as many world leaders as possible to help come to grips with, and hopefully put in place universal measures to tackle the problem, environmental degradation and destruction (Lanchberry, 1996, p. 222). The ability of leaders of many countries to come together (mind you with lots of advanced planning and negotiations) and recommend solid policy proposals (sometimes) for the world to adopt should not be underestimated when considering the effect of summitry in the diplomatic process (Lanchberry, 1996, p. 235-239). The Earth Summit is representative of many of the summits that take place every year and which cover a multitude of issues. Most notably, the way in which the media, world leaders, NGOs, and others attempted to come together for a common goal, even if the results appear watered down or dont go far enough when translated to policy, shouldnt alter the fact that leaders were able to coordinate their efforts, however briefly, to negotiate (or attempt to negotiate) binding policy. Two cases which help illustrate some of the highs and lows of the process of summitry are the International Landmine Treaty Ban and the G7/G8 failed summit in Hokkaido, Japan in 2008. The first illustrates the successes that can be achieved by summitry and some of the good decisions and processes that can occur along the way, while the other shows that sometimes diplomacy should be left to diplomats, not inexperienced negotiators (aka world leaders) who in the end just make a royal mess of things. In the span of just under five years, the International Campaign to Ban Landmines (ICBL) went from being an NGO awareness group, to being the key catalyst in the signing of a worldwide treaty to ban landmines (as well as the coordinator, Jody Williams, receiving the 1997 Nobel Peace Prize for her efforts) (Leguey-Felliux, 2009, p. 122). The non-profit group used intuition and keen planning to pressure the international community to enforce the changes that needed to be made. The UN landmine conference in Geneva in April of 1996, helped to initiate momentum towards the final end goal of a worldwide treaty as well as provide a platform from which NGOs and future governments could use to conduct the delicate negotiations needed to bring about the treaty (Leguey-Felliux, 2009, p. 124). The ICBL and the international community danced back and forth over the issue, by way of multiple conferences, all centered on the issue of banning landmines from the worlds stage. It was through the pressure of the NGOs present at these conferences acting under the coordination of the ICBL, coupled with the media pressure that caused lobbying and negotiations to turn into signatures on a treaty. With the world watching, and with more names (countries) being added to the treaty as the years passed and the conferences were convened, the pressure would slowly build on the remaining leaders to change their position and get with the times. The final summit was convened in the first week of December 1997 in Ottawa, Canada. It served the dual purpose of not only adding the final necessary and desired signatures to the treaty, but also helped fundraise and plan the implementation stages for the actual removal of landmines (Leguey-Felliux, 2009, p. 128). This was quite a feat considering that it started with an NGO using an opportune moment to seize upon the chance to remedy a serious social problem, and ended with government officials and heads of state negotiating po licies that would allow the world to not only ban landmines but also start removing the existing ones. This summit showed not only coordination of different groups and countries, but also global governmental cooperation and negotiation on an important issue. But this summit could be viewed as an exception, and was chosen as an example specifically because of the incredible tangible results that it managed to achieve. At the exact opposite end of the spectrum in terms of output or tangible results I have chosen to examine the G8 Summit in Hokkaido, Japan in July 2008 as a good example of hype and bluster beforehand not quite equaling results afterward. In the run up to the summit, there was optimism abounding from journals, economists and academics alike. A press briefing ahead of the Presidents trip to Japan as well as a report issued by the World Bank in preparation for the conference help to illustrate this optimism. The President of the United States prepared for the Hokkaido summit by using the briefings given by his senior economic, Asian and environmental advisors to explicitly lay out the agenda of the summit as well as the individual bilateral meetings and the working lunches that would take place with many countries at the table (Press Briefing 7/1/2008). Some of the key issues that needed focusing on were climate change, HIV/AIDS and poverty; the working lunches and bilateral meetings were to provide the setting for the international negotiations needed to solve these truly international problems. The Presidents advisors were not the only ones preparing briefings before the summit to help formulate a path to successful negotiations and outcomes, however; the World Bank along with others was also drafting pre-summit reports. The World Bank chose a different path from that chosen by the President. In their report Double Jeopardy: Responding to High Food and Fuel Prices, the World Bank illustrated the specific link between food prices and high oil prices and their effect on poverty by introducing a 10 point plan for the G8 to adopt (World Bank Report, July 2, 2008, p. 2). In this thorough report (which itself is evidence of the importance placed on this summit by the World Bank), there are specific policy recommendations as well as statistics illustrating the correlation between poverty, fuel and food prices (World Bank Report, July 2, 2008, pp. 2-5, 21-27). Using these two different entities preparedness and seriousness as a barometer the outlook for the summit should have been positive. So what actually happened? The title of The Economists review of the summit pretty much says it all: they came, they jawed, they failed to conquer (A mountain-top gabfest provided a spectacular show and a long guest list but few answers to the woes of the world) (Economist, 7/12/2008, p. 68-69). The summit proved to be rather futile in the end, but served the minimal purpose that most summits now serve, as a preparatory meeting for the next summit, sometime in the future. In the case of the Climate Change portions of the Hokkaido summit, some useless platitudes and posturing indicated that everyone was waiting for the Copenhagen Summit on in 2009. This is the new evolved summit: an opportunity for world leaders to sit face to face for a somewhat extended period of time, under media pressure to plan for another meeting in the future. This endless future planning is not actually useless; it should be thought of as one long protracted negotiation. The issue at hand will be resolved or policies produced to find solutions sometime in the future, at some future summit. It has been ninety years since the Peace Conference in Paris and the idea and practice of summitry has evolved drastically as well as becoming interwoven into the practice of diplomacy. The summit is seen as a negotiating arena, a useful public relations tool, and a chance to renew and reaffirm relationships with other states; more than this it has been a platform for further negotiations on some extremely important global issues. Summits can be successful sometimes and unsuccessful other times, but whichever outcome materializes in the end, the foundation for future negotiations will be laid. The summit pervades the world of diplomacy and its effects are seen in the conduct, preparedness, and seriousness of NGOs, world leaders, and other delegates in regards to their relationship with summitry.

Chris Moss vs. Dr. Terry Preece and the Edgewoord Unified School District :: essays research papers

Chris Moss vs. Dr. Terry Preece and the Edgewoord Unified School District   Ã‚  Ã‚  Ã‚  Ã‚  May it please the court, counsel: My name is Zach Keeton and along with my co-counsel Chad Miller and Eric Page , we represent Mr. Chris Moss in this case. Your honor this is the case of Chris Moss Vs. Dr. Terry Preece and the Edgewood Unified School District.   Ã‚  Ã‚  Ã‚  Ã‚  The evidence will show that Chris is part way through 12th grade, and in fact he can't even read. Your honor this is very alarming to us because of one simple fact: Chris has never failed one of his reading class.   Ã‚  Ã‚  Ã‚  Ã‚  The evidence will show that there was educational malpractice in this case. We will also show that the Edgewood School district has a set of guide lines which is passed down from the state of Independence. The guide lines are better known as statutes. They state: 1. Each school shall develop proficiency standards which shall include reading comprehension, writing and computation skills in the English language, necessary to success in school and LIFE experiences. 2. The competent educator shall use or promote the use of appropriate diagnostic techniques to analyze the needs and potential of individuals. 3. Each competent administrator shall support the process of learning by providing appropriate and reasonable materials and equipment and by making reasonable assignments and tasks. These are applicable laws that are supposed to met by all the school district in the state of Independence, including the Edgewood School District.   Ã‚  Ã‚  Ã‚  Ã‚  Through evidence which the court will hear today, we will prove that Dr. Terry Preece , the school superintendend made it a point to pass all of the students in his school district whenever possible.   Ã‚  Ã‚  Ã‚  Ã‚  On the other hand we will call 3 witness to testify during the course of this case. The first witness which we will call is Chris himself. He will state that he has problems reading a simple restaurant menu. What again alarms us about this fact is that Chris passed his 11th grade reading class with no grade lower than a C. The second witness which we call is Dr. Daniel Stein. She will show that Chris could have learned these skills if in fact he had been properly taught. Our third witness is Mr. Raye Payne. He will say that he feels that Chris can't handle a simple mailroom job at his law firm.   Ã‚  Ã‚  Ã‚  Ã‚  The testimony that you will hear today we will show that the Edgewood School District is in fact at fault for Chris's problems. We will show that the school district has a duty to educate people like Chris Moss.

Economics Test Bank Chapter 14

Chapter 14 Firms in Competitive Markets Multiple Choice 1. A FIRM HAS MARKET POWER IF IT CAN |a. |maximize profits. | |b. |minimize costs. | |c. |influence the market price of the good it sells. | |d. |hire as many workers as it needs at the prevailing wage rate. | ANS:CPTS:1DIF:1REF:14-0 NAT:AnalyticLOC:Perfect competitionTOP:Market power MSC:Definitional 2. A book store that has market power can |a. |influence the market price for the books it sells. | |b. |minimize costs more efficiently than its competitors. | |c. |reduce its advertising budget more so than its competitors. | |d. ignore profit-maximizing strategies when setting the price for its books. | ANS:APTS:1DIF:1REF:14-0 NAT:AnalyticLOC:Perfect competitionTOP:Market power MSC:Applicative 3. The analysis of competitive firms sheds light on the decisions that lie behind the |a. |demand curve. | |b. |supply curve. | |c. |way firms make pricing decisions in the not-for-profit sector of the economy. | |d. |way financial markets set interest rates. | ANS:BPTS:1DIF:1REF:14-0 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 4. For any competitive market, the supply curve is closely related to the |a. preferences of consumers who purchase products in that market. | |b. |income tax rates of consumers in that market. | |c. |firms’ costs of production in that market. | |d. |interest rates on government bonds. | ANS:CPTS:1DIF:1REF:14-0 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 5. Suppose a firm in each of the two markets listed below were to increase its price by 20 percent. In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not? |a. |corn and soybeans | |b. gasoline and restaurants | |c. |water and cable television | |d. |spiral notebooks and college textbooks | ANS:DPTS:1DIF:2REF:14-0 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applica tive 6. Suppose a firm in each of the two markets listed below were to increase its price by 30 percent.In which pair would the firm in the first market listed experience a dramatic decline in sales, but the firm in the second market listed would not? |a. |oil and natural gas | |b. |cable television and gasoline | |c. |restaurants and MP3 players | |d. |movie theaters and ballpoint pens | ANS:BPTS:1DIF:2REF:14-0NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative What is a Competitive Market? 1. A KEY CHARACTERISTIC OF A COMPETITIVE MARKET IS THAT |a. |government antitrust laws regulate competition. | |b. |producers sell nearly identical products. | |c. |firms minimize total costs. | |d. |firms have price setting power. | ANS:BPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Definitional 2. Which of the following is not a characteristic of a competitive market? |a. |Buyers and sellers are price takers. | |b. |Each firm sells a virtually identical product. |c. |Entry is limited. | |d. |Each firm chooses an output level that maximizes profits. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Definitional 3. Which of the following is a characteristic of a competitive market? |a. |There are many buyers but few sellers. | |b. |Firms sell differentiated products. | |c. |There are many barriers to entry. | |d. |Buyers and sellers are price takers. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Definitional 4. Who is a price taker in a competitive market? |a. buyers only | |b. |sellers only | |c. |both buyers and sellers | |d. |neither buyers nor sellers | ANS:CPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Definitional 5. Competitive markets are characterized by |a. |a small number of buyers and sellers. | |b. |unique products. | |c. the interdependence of firms. | |d. |free entry and exit by fi rms. | ANS:DPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Definitional 6. A market is competitive if |(i) |firms have the flexibility to price their own product. | |(ii) |each buyer is small compared to the market. | |(iii) |each seller is small compared to the market. | |a. |(i) and (ii) only | |b. |(i) and (iii) only | |c. (ii) and (iii) only | |d. |(i), (ii), and (iii) | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 7. A firm that has little ability to influence market prices operates in a |a. |competitive market. | |b. |strategic market. | |c. |thin market. | |d. |power market. | ANS:APTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Definitional 8. In a competitive market, the actions of any single buyer or seller will |a. have a negligible impact on the market price. | |b. |have little effect on market equilibrium quantity but will affect market equilibr ium price. | |c. |affect marginal revenue and average revenue but not price. | |d. |adversely affect the profitability of more than one firm in the market. | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 9. In a competitive market, the actions of any single buyer or seller will |a. |discourage entry by competitors. | |b. |influence the profits of other firms in the market. | |c. |have a negligible impact on the market price. | |d. None of the above is correct. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 10. Because the goods offered for sale in a competitive market are largely the same, |a. |there will be few sellers in the market. | |b. |there will be few buyers in the market. | |c. |only a few buyers will have market power. | |d. |sellers will have little reason to charge less than the going market price. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:C ompetitive markets MSC:Interpretive 11. Which of the following is not a characteristic of a perfectly competitive market? a. |Firms are price takers. | |b. |Firms have difficulty entering the market. | |c. |There are many sellers in the market. | |d. |Goods offered for sale are largely the same. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 12. Which of the following is not a characteristic of a perfectly competitive market? |a. |Firms are price takers. | |b. |Firms can freely enter the market. | |c. |Many firms have market power. | |d. |Goods offered for sale are largely the same. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 3. Free entry means that |a. |the government pays any entry costs for individual firms. | |b. |no legal barriers prevent a firm from entering an industry. | |c. |a firm's marginal cost is zero. | |d. |a firm has no fixed costs in the short run. | ANS :BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 14. Which of the following industries is most likely to exhibit the characteristic of free entry? |a. |nuclear power | |b. |municipal water and sewer | |c. dairy farming | |d. |airport security | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 15. Which of the following industries is most likely to exhibit the characteristic of free entry? |a. |cable television | |b. |satellite radio | |c. |mineral mining | |d. t-shirt silkscreening | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 16. Which of the following industries is least likely to exhibit the characteristic of free entry? |a. |restaurants | |b. |municipal water and sewer | |c. |soybean farming | |d. |selling running apparel | ANS:BPTS:1DIF:2REF:14-1NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 17. Which of the following industries is least likely to exhibit the characteristic of free entry? |a. |selling running apparel | |b. |wheat farming | |c. |yoga studios | |d. |satellite radio | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 8. When buyers in a competitive market take the selling price as given, they are said to be |a. |market entrants. | |b. |monopolists. | |c. |free riders. | |d. |price takers. | ANS:DPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Definitional 19. When firms are said to be price takers, it implies that if a firm raises its price, |a. |buyers will go elsewhere. | |b. |buyers will pay the higher price in the short run. | |c. |competitors will also raise their prices. | |d. |firms in the industry will exercise market power. | ANS:APTS:1DIF:2REF:14-1NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 20. Which of the following statements best re flects a price-taking firm? |a. |If the firm were to charge more than the going price, it would sell none of its goods. | |b. |The firm has an incentive to charge less than the market price to earn higher revenue. | |c. |The firm can sell only a limited amount of output at the market price before the market price will fall. | |d. |Price-taking firms maximize profits by charging a price above marginal cost. | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 1. Why does a firm in a competitive industry charge the market price? |a. |If a firm charges less than the market price, it loses potential revenue. | |b. |If a firm charges more than the market price, it loses all its customers to other firms. | |c. |The firm can sell as many units of output as it wants to at the market price. | |d. |All of the above are correct. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 22. In a competi tive market, no single producer can influence the market price because |a. |many other sellers are offering a product that is ssentially identical. | |b. |consumers have more influence over the market price than producers do. | |c. |government intervention prevents firms from influencing price. | |d. |producers agree not to change the price. | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 23. A competitive firm would benefit from charging a price below the market price because the firm would achieve |(i) |higher average revenue. | |(ii) |higher profits. | |(iii) |lower total costs. | |a. |(i) only | |b. (ii) and (iii) only | |c. |(i), (ii), and (iii) | |d. |None of the above is correct. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 24. Which of the following characteristics of competitive markets is necessary for firms to be price takers? |(i) |There are many sellers. | |(i i) |Firms can freely enter or exit the market. | |(iii) |Goods offered for sale are largely the same. |a. |(i) and (ii) only | |b. |(i) and (iii) only | |c. |(ii) only | |d. |(i), (ii), and (iii) | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 25. Suppose a firm in a competitive market reduces its output by 20 percent. As a result, the price of its output is likely to |a. |increase. | |b. |remain unchanged. | |c. decrease by less than 20 percent. | |d. |decrease by more than 20 percent. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Analytical 26. The Doris Dairy Farm sells milk to a dairy broker in Prairie du Chien, Wisconsin. Because the market for milk is generally considered to be competitive, the Doris Dairy Farm does not |a. |choose the quantity of milk to produce. | |b. |choose the price at which it sells its milk. | |c. |have any fixed costs of production. | |d. |set marginal re venue equal to marginal cost to maximize profit. | ANS:BPTS:1DIF:2REF:14-1NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 27. The Doris Dairy Farm sells milk to a dairy broker in Prairie du Chien, Wisconsin. Because the market for milk is generally considered to be competitive, the Doris Dairy Farm does not choose the |a. |quantity of milk to produce. | |b. |price at which it sells its milk. | |c. |profits it earns. | |d. |All of the above are correct. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 28. In a competitive market, |a. |no single buyer or seller can influence the price of the product. |b. |there are only a small number of sellers. | |c. |the goods offered by the different sellers are unique. | |d. |accounting profit is driven to zero as firms freely enter and exit the market. | ANS:APTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 29. Which of the following statements regarding a competitive market is not correct? |a. |There are many buyers and many sellers in the market. | |b. |Because of firm location or product differences, some firms can charge a higher price than other firms and still | | |maintain their sales volume. | |c. Price and average revenue are equal. | |d. |Price and marginal revenue are equal. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 30. Which of the following statements regarding a competitive market is not correct? |a. |There are many buyers and many sellers in the market. | |b. |Firms can freely enter or exit the market. | |c. |Price equals average revenue. | |d. |Price exceeds marginal revenue. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 31. One of the defining characteristics of a perfectly competitive market is |a. a small number of sellers. | |b. |a large number of buyers and a smal l number of sellers. | |c. |a similar product. | |d. |significant advertising by firms to promote their products. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Definitional 32. Which of the following firms is the closest to being a perfectly competitive firm? |a. |a hot dog vendor in New York | |b. |Microsoft Corporation | |c. |Ford Motor Company | |d. the campus bookstore | ANS:APTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 33. Which of the following firms is the closest to being a perfectly competitive firm? |a. |the New York Yankees | |b. |Apple, Inc. | |c. |DeBeers diamond wholesalers | |d. |a wheat farmer in Kansas |ANS:DPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 34. Firms that operate in perfectly competitive markets try to |a. |maximize revenues. | |b. |maximize profits. | |c. |equate marginal revenue with average total cost. | |d. |A ll of the above are correct. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 35. A seller in a competitive market can |a. |sell all he wants at the going price, so he has little reason to charge less. | |b. |influence the market price by adjusting his output. | |c. influence the profits earned by competing firms by adjusting his output. | |d. |All of the above are correct. | ANS:APTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 36. A seller in a competitive market |a. |can sell all he wants at the going price, so he has little reason to charge less. | |b. |will lose all his customers to other sellers if he raises his price. | |c. |considers the market price to be a â€Å"take it or leave it† price. | |d. |All of the above are correct. | ANS:DPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 7. In a perfectly competitive market, |a. | no one seller can influence the price of the product. | |b. |price exceeds marginal revenue for each unit sold. | |c. |average revenue exceeds marginal revenue for each unit sold. | |d. |All of the above are correct. | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 38. For a firm in a competitive market, an increase in the quantity produced by the firm will result in |a. |a decrease in the product’s market price. | |b. |an increase in the product’s market price. | |c. |no change in the product’s market price. |d. |either an increase or no change in the product’s market price depending on the number of firms in the market. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive 39. If Cathy’s Coffee Emporium sells its product in a competitive market, then |a. |the price of that product depends on the quantity of the product that Cathy’s Coffee E mporium produces and sells | | |because Cathy’s Coffee Emporium’s demand curve is downward sloping. | |b. |Cathy’s Coffee Emporium's total revenue must be proportional to its quantity of output. | |c. Cathy’s Coffee Emporium's total cost must be a constant multiple of its quantity of output. | |d. |Cathy’s Coffee Emporium's total revenue must be equal to its average revenue. | ANS:BPTS:1DIF:3REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Analytical 40. Changes in the output of a perfectly competitive firm, without any change in the price of the product, will change the firm's |a. |total revenue. | |b. |marginal revenue. | |c. |average revenue. | |d. |All of the above are correct. | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Analytical 41.If a firm in a perfectly competitive market triples the quantity of output sold, then total revenue will |a. |more than triple. | |b. |less than triple. | |c . |exactly triple. | |d. |Any of the above may be true depending on the firm’s labor productivity. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Analytical 42. When a competitive firm doubles the quantity of output it sells, its |a. |total revenue doubles. | |b. |average revenue doubles. | |c. |marginal revenue doubles. | |d. |profits must increase. | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenueMSC:Analytical 43. If a firm in a competitive market doubles its number of units sold, total revenue for the firm will |a. |more than double. | |b. |double. | |c. |increase but by less than double. | |d. |may increase or decrease depending on the price elasticity of demand. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Analytical Table 14-1 |Quantity |Price | |0 |$5 | |1 |$5 | |2 |$5 | |3 |$5 | 4 |$5 | |5 |$5 | |6 |$5 | |7 |$5 | |8 |$5 | |9 |$5 | 44. Refer to Table 14-1. The price and quantity relationship in the table is most likely a demand curve faced by a firm in a |a. |monopoly. | |b. |concentrated market. | |c. |competitive market. | |d. |strategic market. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Analytical 45. Refer to Table 14-1.Over which range of output is average revenue equal to price? |a. |1 to 5 units | |b. |3 to 7 units | |c. |5 to 9 units | |d. |Average revenue is equal to price over the entire range of output. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Average revenue MSC:Analytical 46. Refer to Table 14-1. Over what range of output is marginal revenue declining? |a. 1 to 6 units | |b. |3 to 7 units | |c. |7 to 9 units | |d. |Marginal revenue is constant over the entire range of output. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Analytical 47. Refer to Table 14-1. If the firm doubles its output from 3 to 6 units, total revenue will |a. |increase by less than $15. | |b. |increase by exactly $15. |c. |increase by more than $15. | |d. |Total revenue cannot be determined from the information provided. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Applicative Table 14-2 The table represents a demand curve faced by a firm in a competitive market. |Price |Quantity | |$4 |0 | |$4 |1 | |$4 |2 | |$4 |3 | |$4 |4 | |$4 |5 | 48. Refer to Table 14-2. A firm operating in a competitive market maximizes total revenue by producing |a. |2 units. |b. |3 units. | |c. |4 units. | |d. |as many units as possible. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Applicative 49. Refer to Table 14-2. For a firm operating in a competitive market, the average revenue from selling 3 units is |a. |$12. | |b. |$4. | |c. |$3. | |d. |$1. 25. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Average revenue MSC:Applicative 50. Refer to Table 14-2. For a f irm operating in a competitive market, the marginal revenue from selling the 3rd unit is |a. |$12. | |b. |$4. | |c. |$3. | |d. |$1. 25. | ANS:BPTS:1DIF:3REF:14-1NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Applicative Table 14-3 |Quantity |Total Revenue | |0 |$0 | |1 |$7 | |2 |$14 | |3 |$21 | |4 |$28 | 51. Refer to Table 14-3. For a firm operating in a competitive market, the price is |a. |$0. | |b. |$7. | |c. |$14. | |d. |$21. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 52.Refer to Table 14-3. For a firm operating in a competitive market, the marginal revenue is |a. |$0. | |b. |$7. | |c. |$14. | |d. |$21. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Applicative 53. Refer to Table 14-3. For a firm operating in a competitive market, the average revenue is |a. |$21. | |b. |$14. | |c. |$7. | |d. |$0. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Average re venue MSC:Applicative Table 14-4 |Quantity |Total Revenue | |0 |$0 | |1 |$15 | 2 |$30 | |3 |$45 | |4 |$60 | 54. Refer to Table 14-4. For a firm operating in a competitive market, the price is |a. |$45. | |b. |$30. | |c. |$15. | |d. |$0. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 55. Refer to Table 14-4. For a firm operating in a competitive market, the marginal revenue is |a. |$45. | |b. |$30. | |c. |$15. | |d. |$0. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Applicative 56.Refer to Table 14-4. For a firm operating in a competitive market, the average revenue is |a. |$45. | |b. |$30. | |c. |$15. | |d. |$0. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Average revenue MSC:Applicative Table 14-5 |Quantity |Total Revenue | |12 |$132 | |13 |$143 | |14 |$154 | |15 |$165 | |16 |$176 | 57. Refer to Table 14-5.The price of the product is |a. |$9. | |b. |$11. | |c. |$13. | | d. |$15. | ANS:BPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Competitive markets MSC:Applicative 58. Refer to Table 14-5. The average revenue when 14 units are produced and sold is |a. |$9. | |b. |$11. | |c. |$13. | |d. |$15. | ANS:BPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Average revenue MSC:Analytical 59. Refer to Table 14-5. The marginal revenue of the 12th unit is |a. |$9. | |b. |$10. | |c. |$11 | |d. The marginal revenue cannot be determined without knowing the total revenue when 11 units are sold. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Analytical Table 14-6 The following table presents cost and revenue information for a firm operating in a competitive industry. |COSTS |REVENUES | |Quantity |Total |Marginal |Quantity |Price |Total |Marginal | |Produced |Cost |Cost |Demanded | Revenue |Revenue | |  0 |$100 |  Ã¢â‚¬â€ |  0 |  $120 | |  Ã¢â‚¬â€ | |  1 |$150 | |  1 |  $120 | | | |  2 |$202 | |  2 |  $120 | | | |  3 |$257 | |  3 |  $120 | | | |  4 |$317 | |  4 |  $120 | | | |  5 |$385 | |  5 |  $120 | | | |  6 |$465 | |  6 |  $120 | | | |  7 |$562 | |  7 |  $120 | | | |  8 |$682 | |  8 |  $120 | | | 60. Refer to Table 14-6. What is the total revenue from selling 7 units? |a. $120 | |b. |$490 | |c. |$562 | |d. |$840 | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Applicative 61. Refer to Table 14-6. What is the total revenue from selling 4 units? |a. |$120 | |b. |$257 | |c. $317 | |d. |$480 | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Applicative 62. Refer to Table 14-6. What is the marginal revenue from selling the 3rd unit? |a. |$55 | |b. |$120 | |c. |$137 | |d. |$140 | ANS:BPTS:1DIF:2REF:14-1NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Applicative 63. Refer to Table 14-6. What is the average revenue when 4 units are sold? |a. |$60 | |b. |$120 | |c. |$125 | |d. |$197 | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Average revenue MSC:Applicative 64. Which of the following statements is correct? a. |For all firms, marginal revenue equals the price of the good. | |b. |Only for competitive firms does average revenue equal the price of the good. | |c. |Marginal revenue can be calculated as total revenue divided by the quantity sold. | |d. |Only for competitive firms does average revenue equal marginal revenue. | ANS:DPTS:1DIF:3REF:14-1 NAT:AnalyticLOC:Perfect competition TOP:Average revenue | Marginal revenueMSC:Interpretive 65. Suppose a firm in a competitive market earned $1,000 in total revenue and had a marginal revenue of $10 for the last unit produced and sold. What is the average revenue per unit, and how many units were sold? |a. $5 and 50 units | |b. |$5 and 100 units | |c. |$10 and 50 units | |d. |$10 and 100 units | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionT OP:Average revenue MSC:Applicative 66. Which of the following statements regarding a competitive firm is correct? |a. |Because demand is downward sloping, if a firm increases its level of output, the firm will have to charge a lower | | |price to sell the additional output. | |b. If a firm raises its price, the firm may be able to increase its total revenue even though it will sell fewer units. | |c. |By lowering its price below the market price, the firm will benefit from selling more units at the lower price than | | |it could have sold by charging the market price. | |d. |For all firms, average revenue equals the price of the good. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Average revenue MSC:Analytical 67. Suppose a firm in a competitive market produces and sells 150 units of output and earns $1,800 in total revenue from the sales. If the firm increases its output to 200 units, the average revenue of the 200th unit will be |a. less than $12. | |b. |more th an $12. | |c. |$12. | |d. |Any of the above may be correct depending on the price elasticity of demand for the product. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Average revenue MSC:Analytical 68. Suppose a firm in a competitive market produces and sells 150 units of output and earns $1,800 in total revenue from the sales. If the firm increases its output to 200 units, total revenue will be |a. |$2,000. | |b. |$2,400. | |c. |$4,200. | |d. |We do not have enough information to answer the question. | ANS:BPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Total revenue MSC:Analytical 69.Firms operating in competitive markets produce output levels where marginal revenue equals |a. |price. | |b. |average revenue. | |c. |total revenue divided by output. | |d. |All of the above are correct. | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competition TOP:Marginal revenue | Average revenueMSC:Applicative 70. For a competitive firm, |a. |total revenue equals a verage revenue. | |b. |total revenue equals marginal revenue. | |c. |total cost equals marginal revenue. | |d. |average revenue equals marginal revenue. | ANS:DPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competition TOP:Marginal revenue | Average revenueMSC:Definitional 71.Suppose that a firm operating in perfectly competitive market sells 100 units of output. Its total revenues from the sale are $500. Which of the following statements is correct? |(i) |Marginal revenue equals $5. | |(ii) |Average revenue equals $5. | |(iii) |Price equals $5. | |a. |(i) only | |b. |(iii) only | |c. |(i) and (ii) only | |d. |(i), (ii), and (iii) | ANS:DPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue | Average revenueMSC:Analytical 72. Suppose that a firm operating in perfectly competitive market sells 200 units of output at a price of $3 each. Which of the following statements is correct? |(i) |Marginal revenue equals $3. | |(ii) |Average revenue equals $600. | |(iii) |Ave rage revenue exceeds marginal revenue, but we don’t know by how much. | |a. |(i) only | |b. |(iii) only | |c. |(i) and (ii) only | |d. (i), (ii), and (iii) | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competition TOP:Marginal revenue | Average revenueMSC:Analytical 73. Suppose that a firm operating in perfectly competitive market sells 300 units of output at a price of $3 each. Which of the following statements is correct? |(i) |Marginal revenue equals $3. | |(ii) |Average revenue equals $100. | |(iii) |Total revenue equals $300. | |a. |(i) only | |b. |(iii) only | |c. (i) and (ii) only | |d. |(i), (ii), and (iii) | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competition TOP:Marginal revenue | Average revenueMSC:Analytical 74. Suppose that a firm operating in perfectly competitive market sells 400 units of output at a price of $4 each. Which of the following statements is correct? |(i) |Marginal revenue equals $4. | |(ii) |Average revenue equals $100. | |(iii) |Total revenue equals $1,600. | |a. |(i) only | |b. (iii) only | |c. |(i) and (iii) only | |d. |(i), (ii), and (iii) | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competition TOP:Marginal revenue | Average revenueMSC:Analytical 75. For a firm operating in a competitive industry, which of the following statements is not correct? |a. |Price equals average revenue. | |b. |Price equals marginal revenue. | |c. |Total revenue is constant. | |d. |Marginal revenue is constant. | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue | Average revenueMSC:Interpretive 76. For a firm in a perfectly competitive market, the price of the good is always |a. |equal to marginal revenue. | |b. |equal to total revenue. | |c. |greater than average revenue. | |d. |equal to the firm’s efficient scale of output. | ANS:APTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Interpretive 77. Suppose a firm in a competitive market produces and se lls 8 units of output and has a marginal revenue of $8. 00. What would be the firm's total revenue if it instead produced and sold 4 units of output? |a. |$4 | |b. |$8 | |c. $32 | |d. |$64 | ANS:CPTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Applicative 78. Whenever a perfectly competitive firm chooses to change its level of output, its marginal revenue |a. |increases if MR < ATC and decreases if MR > ATC. | |b. |does not change. | |c. |increases. | |d. |decreases. | ANS:BPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Marginal revenue MSC:Interpretive 79. Suppose that in a competitive market the equilibrium price is $2. 50.What is marginal revenue for the last unit sold by the typical firm in this market? |a. |less than $2. 50 | |b. |more than $2. 50 | |c. |exactly $2. 50 | |d. |The marginal revenue cannot be determined without knowing the actual quantity sold by the typical firm. | ANS:CPTS:1DIF:1REF:14-1 NAT:AnalyticLOC:Perfect competi tionTOP:Marginal revenue MSC:Interpretive 80. For an individual firm operating in a competitive market, marginal revenue equals |a. |average revenue and the price for all levels of output. | |b. |average revenue, which is greater than the price for all levels of output. | |c. average revenue, the price, and marginal cost for all levels of output. | |d. |marginal cost, which is greater than average revenue for all levels of output. | ANS:APTS:1DIF:2REF:14-1 NAT:AnalyticLOC:Perfect competition TOP:Marginal revenue | Average revenueMSC:Interpretive 81. If the market elasticity of demand for potatoes is -0. 3 in a perfectly competitive market, then the individual farmer's elasticity of demand |a. |will also be -0. 3. | |b. |depends on how large a crop the farmer produces. | |c. |will range between -0. 3 and -1. 0. | |d. |will be infinite. | ANS:DPTS:1DIF:3REF:14-1 NAT:AnalyticLOC:Perfect competitionTOP:Elasticity MSC:AnalyticalProfit Maximization and the Competitive Firm's Supply Curve 1. IF A COMPETITIVE FIRM IS CURRENTLY PRODUCING A LEVEL OF OUTPUT AT WHICH MARGINAL REVENUE EXCEEDS MARGINAL COST, THEN |a. |a one-unit increase in output will increase the firm's profit. | |b. |a one-unit decrease in output will increase the firm's profit. | |c. |total revenue exceeds total cost. | |d. |total cost exceeds total revenue. | ANS:APTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 2. If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then |a. |a one-unit increase in output will increase the firm's profit. | |b. a one-unit decrease in output will increase the firm's profit. | |c. |total revenue exceeds total cost. | |d. |total cost exceeds total revenue. | ANS:BPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 3. If a competitive firm is currently producing a level of output at which marginal cost exceeds marginal revenue, then |a . |average revenue exceeds marginal cost. | |b. |the firm is earning a positive profit. | |c. |decreasing output would increase the firm's profit. | |d. |All of the above are correct. | ANS:CPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 4. Comparing marginal revenue to marginal cost (i) |reveals the contribution of the last unit of production to total profit. | |(ii) |is helpful in making profit-maximizing production decisions. | |(iii) |tells a firm whether its fixed costs are too high. | |a. |(i) only | |b. |(i) and (ii) only | |c. |(ii) and (iii) only | |d. |(i) and (iii) only | ANS:BPTS:1DIF:2REF:14-2NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Interpretive 5. At the profit-maximizing level of output, |a. |marginal revenue equals average total cost. | |b. |marginal revenue equals average variable cost. | |c. |marginal revenue equals marginal cost. | |d. |average revenue equals average total cost. | ANS:CPTS:1DIF:2RE F:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Interpretive 6. The intersection of a firm's marginal revenue and marginal cost curves determines the level of output at which |a. |total revenue is equal to variable cost. | |b. |total revenue is equal to fixed cost. | |c. |total revenue is equal to total cost. | |d. |profit is maximized. | ANS:DPTS:1DIF:2REF:14-2NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Interpretive 7. For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $7. It follows that the |a. |production of the 100th unit of output increases the firm's profit by $3. | |b. |production of the 100th unit of output increases the firm's average total cost by $7. | |c. |firm's profit-maximizing level of output is less than 100 units. | |d. |production of the 99th unit of output must increase the firm’s profit by less than $3. | ANS:APTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perf ect competitionTOP:Competitive firms MSC:Analytical 8.For a certain firm, the 100th unit of output that the firm produces has a marginal revenue of $10 and a marginal cost of $11. It follows that the |a. |production of the 100th unit of output increases the firm's profit by $1. | |b. |production of the 100th unit of output increases the firm's average total cost by $1. | |c. |firm's profit-maximizing level of output is less than 100 units. | |d. |production of the 110th unit of output must increase the firm’s profit but by less than $1. | ANS:CPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 9. A certain competitive firm sells its output for $20 per unit. The 50th unit of output that the firm produces has a marginal cost of $22.Production of the 50th unit of output does not necessarily |a. |increase the firm's total revenue by $20. | |b. |increase the firm's total cost by $22. | |c. |decrease the firm's profit by $2. | |d. |increase t he firm’s average variable cost by $0. 44. | ANS:DPTS:1DIF:3REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 10. Sam sells soybeans to a broker in Chicago, Illinois. Because the market for soybeans is generally considered to be competitive, Sam maximizes his profit by choosing |a. |to produce the quantity at which average variable cost is minimized. | |b. |to produce the quantity at which average fixed cost is minimized. |c. |to sell at a price where marginal cost is equal to average total cost. | |d. |the quantity at which market price is equal to Sam's marginal cost of production. | ANS:DPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 11. If a competitive firm is selling 1,000 units of its product at a price of $9 per unit and earning a positive profit, then |a. |its total cost is less than $9,000. | |b. |its marginal revenue is less than $9. | |c. |its average revenue is greater than $9. | |d. |the firm cannot be a competitive firm because competitive firms cannot earn positive profits. | ANS:APTS:1DIF:2REF:14-2NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 12. If a competitive firm is selling 1,000 units of its product at a price of $8 per unit and earning a positive profit, then |a. |its average revenue is greater than $8. | |b. |its marginal revenue is less than $8. | |c. |its total cost is less than $8,000. | |d. |All of the above are correct. | ANS:CPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 13. Max sells maps. The map industry is competitive. Max hires a business consultant to analyze his company’s financial records. The consultant recommends that Max increase his production. The consultant must have concluded that Max’s |a. total revenues exceed his total accounting costs. | |b. |marginal revenue exceeds his total cost. | |c. |marginal revenue exceeds his marginal cost. | |d. |margina l cost exceeds his marginal revenue. | ANS:CPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Interpretive 14. Christopher is a professional tennis player who gives tennis lessons. The industry is competitive. Christopher hires a business consultant to analyze his financial records. The consultant recommends that Christopher give fewer tennis lessons. The consultant must have concluded that Christopher’s |a. |total revenues exceed his total accounting costs. | |b. marginal revenue exceeds his total cost. | |c. |marginal revenue exceeds his marginal cost. | |d. |marginal cost exceeds his marginal revenue. | ANS:DPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Interpretive 15. Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes. Laura sells 20 wedding cakes per month. Her monthly total revenue is $5,000. The marginal cost of making a wedding cake is $300. In order to maximize profits, Laura should |a. |make more than 20 wedding cakes per month. | |b. |make fewer than 20 wedding cakes per month. | |c. continue to make 20 wedding cakes per month. | |d. |We do not have enough information with which to answer the question. | ANS:BPTS:1DIF:3REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 16. Laura is a gourmet chef who runs a small catering business in a competitive industry. Laura specializes in making wedding cakes. Laura sells 20 wedding cakes per month. Her monthly total revenue is $5,000. The marginal cost of making a wedding cake is $200. In order to maximize profits, Laura should |a. |make more than 20 wedding cakes per month. | |b. |make fewer than 20 wedding cakes per month. | |c. |continue to make 20 wedding cakes per month. | |d. We do not have enough information with which to answer the question. | ANS:APTS:1DIF:3REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MS C:Analytical 17. Marcia is a fashion designer who runs a small clothing business in a competitive industry. Marcia specializes in making designer dresses. Marcia sells 10 dresses per month. Her monthly total revenue is $5,000. The marginal cost of making a dress is $400. In order to maximize profits, Marcia should |a. |make more than 10 dresses per month. | |b. |make fewer than 10 dresses per month. | |c. |continue to make 10 dresses per month. | |d. |We do not have enough information with which to answer the question. | ANS:APTS:1DIF:3REF:14-2NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 18. Marcia is a fashion designer who runs a small clothing business in a competitive industry. Marcia specializes in making designer dresses. Marcia sells 10 dresses per month. Her monthly total revenue is $5,000. The marginal cost of making a dress is $500. In order to maximize profits, Marcia should |a. |make more than 10 dresses per month. | |b. |make fewer than 10 dres ses per month. | |c. |continue to make 10 dresses per month. | |d. |We do not have enough information with which to answer the question. | ANS:CPTS:1DIF:3REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 19.Marcia is a fashion designer who runs a small clothing business in a competitive industry. Marcia specializes in making designer dresses. Marcia sells 10 dresses per month. Her monthly total revenue is $5,000. The marginal cost of making a dress is $600. In order to maximize profits, Marcia should |a. |make more than 10 dresses per month. | |b. |make fewer than 10 dresses per month. | |c. |continue to make 10 dresses per month. | |d. |We do not have enough information with which to answer the question. | ANS:BPTS:1DIF:3REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 20. A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive.Then, the price rises to $25, a nd the firm makes whatever adjustments are necessary to maximize its profit at the now-higher price. Once the firm has adjusted, its |a. |quantity of output is higher than it was previously. | |b. |average total cost is higher than it was previously. | |c. |marginal revenue is higher than it was previously. | |d. |All of the above are correct. | ANS:DPTS:1DIF:3REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Interpretive 21. A competitive firm has been selling its output for $20 per unit and has been maximizing its profit, which is positive. Then, the price falls to $18, and the firm makes whatever adjustments are necessary to maximize its profit at the now-lower price. Once the firm has adjusted, its |a. quantity of output is lower than it was previously. | |b. |average total cost is lower than it was previously. | |c. |marginal cost is higher than it was previously. | |d. |All of the above are correct. | ANS:APTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competit ionTOP:Competitive firms MSC:Interpretive 22. A competitive firm has been selling its output for $10 per unit and has been maximizing its profit. Then, the price rises to $14, and the firm makes whatever adjustments are necessary to maximize its profit at the now-higher price. Once the firm has adjusted, its |a. |marginal revenue is lower than it was previously. | |b. |marginal cost is lower than it was previously. | |c. quantity of output is higher than it was previously. | |d. |All of the above are correct. | ANS:CPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Interpretive 23. When profit-maximizing firms in competitive markets are earning profits, |a. |market demand must exceed market supply at the market equilibrium price. | |b. |market supply must exceed market demand at the market equilibrium price. | |c. |new firms will enter the market. | |d. |the most inefficient firms will be encouraged to leave the market. | ANS:CPTS:1DIF:2REF:14-2 NAT:Ana lyticLOC:Perfect competitionTOP:Competitive markets MSC:Interpretive Table 14-7Suppose that a firm in a competitive market faces the following revenues and costs: | |Marginal |Marginal | |Quantity |Cost |Revenue | |12 |$5 |$9 | |13 |$6 |$9 | |14 |$7 |$9 | |15 |$8 |$9 | |16 |$9 |$9 | |17 |$10   |$9 | 24. Refer to Table 14-7. If the firm is currently producing 14 units, what would you advise the owners? |a. |decrease quantity to 13 units | |b. |increase quantity to 17 units | |c. |continue to operate at 14 units | |d. increase quantity to 16 units | ANS:DPTS:1DIF:1REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative 25. Refer to Table 14-7. If the firm is maximizing profit, how much profit is it earning? |a. |$0 | |b. |$1 | |c. |$10 | |d. |There is insufficient data to determine the firm’s profit. | ANS:DPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit MSC:Applicative Table 14-8Suppose that a firm in a competitive market faces the following revenues and costs: |Quantity |Total Revenue |Total Cost | |0 |$0 |$3 | |1 |$7 |$5 | |2 |$14 |$8 | |3 |$21 |$12 | |4 |$28 |$17 | |5 |$35 |$23 | |6 |$42 |$30 | |7 |$49 |$38 | 26. Refer to Table 14-8.The firm will not produce an output level beyond |a. |4 units. | |b. |5 units. | |c. |6 units. | |d. |7 units. | ANS:CPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative 27. Refer to Table 14-8. The firm will produce a quantity greater than 4 because at 4 units of output, marginal cost |a. |is less than marginal revenue. | |b. |equals marginal revenue. | |c. |is greater than marginal revenue. | |d. |is minimized. | ANS:APTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative 28. Refer to Table 14-8. In order to maximize profits, the firm will produce |a. |1 unit of output because marginal cost is minimized. | |b. 4 units of output because marginal revenue exceeds marginal cost. | |c. |6 units of output because marginal revenue equals marginal cost. | |d. |8 units of output because total revenue is maximized. | ANS:CPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative Table 14-9 Suppose that a firm in a competitive market faces the following revenues and costs: |Quantity |Total Revenue |Total Cost | |0 |$0 |$10 | |1 | $9 | $14 | |2 $18 | $19 | |3 |$27 | $25 | |4 |$36 | $32 | |5 |$45 | $40 | |6 |$54 | $49 | |7 |$63 | $59 | |8 |$72 | $70 | |9 |$81 | $82 | 29. Refer to Table 14-9. If the firm produces 4 units of output, |a. |marginal cost is $4. | |b. |total revenue is greater than variable cost. | |c. |marginal revenue is less than marginal cost. | |d. |the firm is maximizing profit. | ANS:BPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Competitive firms MSC:Analytical 30. Refer to Table 14-9. At which quantity of output is marginal revenue equal to marginal cost? |a. 3 units | |b. |6 units | |c. |8 units | |d. |9 units | ANS:BPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative 31. Refer to Table 14-9. In order to maximize profit, the firm will produce a level of output where marginal revenue is equal to |a. |$6. | |b. |$7. | |c. |$8. | |d. |$9. | ANS:DPTS:1DIF:2REF:14-2NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative 32. Refer to Table 14-9. In order to maximize profit, the firm will produce a level of output where marginal cost is equal to |a. |$5. | |b. |$7. | |c. |$9. | |d. |$10. | ANS:CPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative 33. Refer to Table 14-9. The maximum profit available to the firm is |a. |$2. | |b. |$3. | |c. |$4. | |d. |$5. | ANS:DPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative 34. Refer to Table 14-9. If the firm’s marginal cost is $11, it should |a. |increase production to maximize profit. | |b. increase the pri ce of the product to maximize profit. | |c. |advertise to attract additional buyers to maximize profit. | |d. |reduce production to increase profit. | ANS:DPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Analytical 35. Refer to Table 14-9. If the firm’s marginal cost is $5, it should |a. |reduce fixed costs by lowering production. | |b. |increase production to maximize profit. | |c. |decrease production to maximize profit. | |d. |maintain its current level of production to maximize profit. | ANS:BPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Analytical Table 14-10Suppose that a firm in a competitive market faces the following revenues and costs: |Quantity |Total Revenue |Total Cost | |0 |$0 |$3 | |1 |$7 |$5 | |2 |$14 |$9 | |3 |$21 |$15 | |4 |$28 |$23 | |5 |$35 |$33 | |6 |$42 |$45 | |7 |$49 |$59 | 36. Refer to Table 14-10. The marginal cost of producing the 4th unit is |a. |$7. | |b. |$8. | |c. |$10. | |d. | $23. | ANS:BPTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Marginal cost MSC:Applicative 37. Refer to Table 14-10. At which level of production will the firm maximize profit? |a. |3 units | |b. |4 units | |c. |5 units | |d. 6 units | ANS:APTS:1DIF:2REF:14-2 NAT:AnalyticLOC:Perfect competitionTOP:Profit maximization MSC:Applicative 38. Refer to Table 14-10. If the firm produces the profit-maximizing level of production, how much profit will the firm earn? |a. |$2 | |b. |$4 | |c. |$6 | |d. |$8 | ANS:CPTS:1DIF:2REF:14-2

Income inequality Essay

It is the report which is talking about income inequality. It is global income inequality is increasing. Besides that that’s is more information about measurement for the income inequality The relationship between the income inequality and economic growth Technological change and globalisation partly on income inequality, Way to reduce the income inequality, Causes of income inequality, and High income inequality gap-Latin America. Mostly it is all about the income inequality in this assignment is telling about the income inequality. Income inequality Income inequality is about the measurement of people’s household or individual based on their income across the various participants in an economy. It is also known as the gap between the rich and poor, wealth and poverty, the different of income between populations or individual (Ram, R. (1988)). Measurement To measure the income inequality have to use the Gini coefficient which developed by Italian statistician in 1912. The Gini coefficient is measuring the income inequality based on the value of a frequency distribution (for example levels of income). The value of the Gini coefficient is between the range 0 to 1. Therefore, 0 that means â€Å"perfect equality ’’ which every person is getting the same income and 1 that means â€Å"perfect inequality’’ which is all income change to the share of the population with the highest income. The Gini coefficient is also to be used for to measure wealth inequality. This use of Gini coefficient requires that no one has a negative net wealth. Besides that, the Gini index often used which is the Gini coefficient expressed as a percentage, but it is equal to the Gini coefficient multiplied by 100. (Most of the time people are using the Gini index for calculating the income inequality. ) Graph1(source:http://people. stfx. ca) The graph above shows that the Gini coefficient is equal to the area which is shaded to the yellow colour. The relationship between the income inequality and economic growth Graph 2(source : author’s calculation) The graph above is showing the relationship between the income inequality and economic growth. Besides that, the graph above is showing the improvement in the Gini of 0. 01 costs 1. 6 per cent per year in per capita economic growth which mean economic growth improves may affect the income inequality. The relationships between the income inequality and economic growth have a very strong gap sometimes. That means change of economic growth would affect the income inequality. Therefore, the economic growth will reduce the income inequality when the salary of the lowest paid rise faster than the average wage. Besides that, the economic growth can increase the job opportunity for people to reduce the level of unemployment in the social. Economic growth often creates the job opportunity for those people who are high skilled and educated. After job opportunity increased can make the level of poverty decreased and reduce the income inequality. Enhancing the growth of economic may raise the income inequality such as increasing the flexibility of wage determination. The growth of economic is showing the extension for flexibility of wage determination. To increase the wage of employee may reduce the income inequality but it also made the labour cost increased for the employer. Increasing the wage agreement to firms may make some employers have to pay the highly salary of employee. This action may increase the unemployment and affected productivity of the company decreasing because labour cost too high makes the employer hard to endure (Murtin et al. , 2012). graph 3 The graph above is showing the global income inequality is increasing from the year 1820 to the year 2008. The Gini coefficient is increasing that mean income inequality is increasing at the same time. But, sometime the economic growth may not reduce the income inequality. It is because the Economic Growth will not necessarily solve unemployment. For example, growth cannot solve structural and frictional unemployment it is because unemployment (structural and frictional) which caused by lack of skills and geographical immobility. Technological change and globalisation partly on income inequality The current technology with globalisation might rise in the market equipment and create the boosting top incomes. (Rosen, 1981; Gordon and Dew-Becker, 2008). These days, the the change of technology is affecting too fast, however it can also influence the income inequality. It is due to inclined the job opportunity for people who high skilled, but also increasing the unemployment. For instance, those who have not high-skilled workers might drop their work due to the same repetitive happens that may be running on the technologies, technological for achieving the target. Thus the desires for those workers can decline due to the change of technological. Likewise, to estimate for both highly-skilled and low-skilled workers need to focus respective work even the technology change, both of them might difficult to replace by machines or lose their job. If the demand shift is not offset by the equal shift related to the labour supply, change in technology can lead to reduction in salary. (e. g. Autor et al. , 2006, Goos et al. , 2009). At the same time, the globalisation may also increase the income inequality. 1) The offshoring (change the national). It is talking about people from richer countries move to poorer countries or poorer country move to richer country. The offshoring happen because skill intensive in their country. For example, some people from the perspective of the skill-poor country may move to rich country for searching the job opportunity. For the conclusion, offshoring makes labour demand more skill intensive in both poorer and richer countries, thus it is increasing the income inequality in both groups of countries (Feenstra and Hanson, 1996). 2) Sometime, the firms are making a different in their profitability which can make the low-income workers work in satisfaction and create low-productivity firms. That would make the firm lose their competitor compare to the other company. At the same time, it may increase labour income inequality by lowering or reducing the employment (e. g. Egger and Kreickemeier,2009; Helpman et al. , 2010). Improvement of the Globalisation and technological change may further raise the income inequality. Besides that, technology may go to the globalisation but it is also increasing the competition between companies to the company in the world, that mean globalisation for technology may force firms to Innovate. Therefore, the Innovation is increasing the labour income inequality both temporarily – since R&D is skill intensive (Dinopoulos and Segerstrom, 1999; Neary, 2003) and it provided the R&D results in skill-biased on technological change as discussed above (Acemoglu, 2002). Caused of income inequality -Different religion, region, language and gender In Indian have many different of culture, race, religion and language. This situation is making the Indian citizen get a different education or maybe some of don’t even have the opportunity to study. It is because different of culture, race, religion language and sex in Indian might made some of them didn’t get the chance to study or educated. At the same, this kind of diversity is making a trouble to access to education and chance of employment might decrease also at the same time. This is calling the kind of discrimination. The different is making the people in suffer from significant of inequality in employment, education and income. This kind of situation is increasing because different family background might made the living standard become harder and difficult, caused the income increasing in India (Desai & Kulkarni, 2008). -Technology The technology is improving all the time, but it also is decreasing the opportunity of job for people who are unskilled and limited educated. The company have to increase productivity to satisfy the demand from market. A lot of companies are investing to the technology to increase their productivity and growth in their business. Therefore, the number of automatic machine increasing is decreasing the job for those people who are working in manual, handy, limited educated and unskilled. In the same time, the service job could increasing because the technology improvement and factory job such as manual and handy is reducing. The service increased but it is just a low pay job. Technology is increasing the income inequality and it is replaced many worker in factory in U. S (WSJ, Technology, Not Globalization,Feeds Income Inequality, July 24, 2008). -Education The raising of education level is the most efficient way to reduce the income inequality. It is because the education has the great relation to the income distribution. The investment in education can made the income inequality decreased and lowers the level of poverty. People who is educated can get a higher opportunity to get a job compared to those are limited educated. It is important to send the child to the school and educated for increasing their intelligence and knowledge for achieving their ambition. In Brazil have a high inequality of income because average of citizen of Brazil attends fewer year to school compared to other. Number of Brazilian is increasing compared to the other country compared to the Latin America (Carlos Aguiar de Medeiros of International Development Economics Associates, 2001) -Price Stability The price stability is also known as inflation problem. In Brazil, inflation happens is making the poor getting poorer but the rich getting richer. It is because when facing the inflation problem or price instability, the company (rich) is following the same contract of wage or income to pay the salary to their employee (poor). Therefore, the poor have to reduce their living standard with their unchanged pay or real lower wages. At the same time, the investor (rich) can move their financial to other country for more opportunity to protect their money during the inflation. But, the poorer citizens have to work in a harder situation so it is difficult for them to escape poverty. (Carlos Aguiar de Medeiros of International Development Economics Associates, 2001) -Impact of Social Benefits In China, government have to provide a lot of benefit to their citizen. For example of social benefit, it is more like social insurance income or pension benefit. Caused of population increased and economic reforms need a greater financial to stimulate the economic growth. Therefore, have to reduce the social benefit such as pension benefit. It is big impact those are affected and increasing the income inequality. At the same time, not only the pension benefits government of China have to reduce the other social benefits such house benefit, health benefits, food assistance and other when have to improve the economic growth but increase income inequality (Gao 2006). http://www. networkideas. org/ideasact/jun07/beijing_conference_07/carl_riskin. pdf Way to reduce income inequality -Immigration Immigration policy would make United States reduce the income inequality. To let in more immigrants who is highly educated and skill will making more job to the America workers. More immigrants don’t mean reduce the opportunity of job to the America workers because it is creating more jobs to those people who are limited educated and limited skill at the same time. While immigrants are highly educated came to America such as: doctor, engineers, lawyer, entrepreneurs and other may increasing the job opportunity to the citizen of America who is limited educated. The job for United State people could increase caused by the immigrants system. Therefore, reducing the number of workers (immigrants) who is limited education might reducing the income inequality to the America because created more opportunity for those people who is limited education and unskilled. (Enrico Moretti is the Michael Peevey and Donald Vial Chair in Labor Economics at the University of California, Berkeley. He is the author of â€Å"The New Geography of Jobs† (2012). ) -Education In the France that strategy been used make sure every citizen in the country might get the chance to study or educated. It is the one of way to reduce the income inequality which has to be start on education. The education is very important because it can the people in the country to improve their living standards; reduce the income inequality at the same time. New analysis is showing that an increasing for the job opportunity for people with education is associated which is making a decline in labour Earnings inequality in France (Fournier and Koske, 2012). An education is giving to every citizen for get a higher chance to get the job opportunity might reduce the income inequality. -Protecting Our Poor, Elderly and Women to Reduce Income Inequality In Singapore is making the new job for those women, elder worker, and poor people to find and obtain a new job. It is helping them to avoid poverty but have to reduce their salary in their new job. This kind of policy is enabling those workers such as migrants, women, and elder worker to get an income and escape poverty. In the labour market, giving the new job for those people might increase the productivity in Singapore and reduces the income inequality at the same time. But a new job in low pay is providing for that unemployment or can’t find the job; women have been terminated in their job because of pregnancy, and unconscionably obtuse of the elder employee. Have to pay in low wage because their productivity in work also reducing but it still can helped them to continue their live or living (SINGAPORE POPULATION WHITE PAPER, 2013) -Heavy-industry-oriented development strategy In China is starting the strategy of heavy-industry-oriented development to increase the speed of pace of industrialization. To focus of heavy-industry-oriented development strategy, China is increasing the amount of resource from the agriculture. At the same time, it is increasing the opportunity of job. It is because it is some kind of investment to increase the productivity of China by heavy-industry-oriented development which is providing by China government. To run the strategy, the government of China is moving the industry to the less developed rural regions for increasing the job opportunity for those people over there and reducing the income inequality. To reduce the region income inequality, the strategy of heavy-industry-oriented development might carry on rural region to increase their job opportunity. To increasing the growth of economic in China, have to increase the job opportunity for those are employment and increasing the productivity in China. This may decrease the income inequality gap in China (Yang 2002). Conclusion The information above is showing the income inequality is increasing in the world. The income inequality is making people become poorer for those are poor and make the people become richer for those are rich. Therefore it is the economic issue including the outcome, earning and economic growth. It is why income inequality is the one of target or problem for macroeconomic to solve. Reference -Ram, R. (1988) http://www. collinsdictionary. com/dictionary/english/income-inequality -Graph1 http://people. stfx. ca -Graph 2 (source : author’s calculation) -Murtin et al. , 2012 http://www. oecd. org/eco/labour/49421421. pdf