If you order your research paper from our custom writing service you will receive a perfectly written assignment on monopoly and perfect competition. What we need from you is to provide us with your detailed paper instructions for our experienced writers to follow all of your specific writing requirements. Specify your order details, state the exact number of pages required and our custom writing professionals will deliver the best quality monopoly and perfect competition paper right on time.

Our staff of freelance writers includes over 120 experts proficient in monopoly and perfect competition, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your monopoly and perfect competition paper at affordable prices ! Economic welfare is the base of two parties in trade. It can be quantified as the sum of consumer surplus and producer surplus.

Consumer surplus is the amount that a buyer is willing to pay for a product minus the amount the buyer actually pays while producer surplus refers to the difference between the price that a producer is willing to accept and the actual price. As we can see from figure 1, consumer surplus is the area below the demand curve and above the market price. However, producer surplus is the area above the demand curve and below the market price. Needless to say, the sum of the two parts is called economic welfare. Economic welfare will change while the market structure changes. In this essay, I will analyze how economic welfare changes if a market structure changing from perfect competition to a monopoly. However, whether the monopolist charges a single price or a multi price will affect the outcome.

Generally speaking, perfect competition is a market structure where there are a large number of firms and any individual firm, or any individual consumer, will have no effect on market price. It can exist in a market only if the following conditions are satisfied. Firstly, there are a lot of buyers and sellers. Secondly, buyers have perfect knowledge. Furthermore, units of the good sold by different sellers are identical and last, there are no barriers to entry into or exit from the market. Every firm is a ¡®price taker¡¯ and thus had no influence on the market price. However, a firm in a competitive market, like most other firms in the economy, tries to maximize profit. As we know, at the profit maximizing level of output, marginal revenue and marginal cost are exactly equal. This is a general rule for profit maximization. Though in the short run, firms in the perfect competitive market may make a supernomoral profit or loss, in the long run, all the firms just can make a normal profit at an equilibrium price which is determined in the industry by the intersection of MC and MR curve. The reason is clear. In the long run, if firms are making supernomoral profits, new firms will be attracted into the industry as there is few barriers to enter. Thus firms have to reduce their price to ensure output. The price will fall until it gets to the equilibrium point where the market price is just equal to the firm¡¯s long run average cost. I.e. firms can just make normal profit to cover their cost.

By contrast, a firm is considered a monopoly if it is the only seller of a good or service with no substitutes. A monopoly firm is a price maker while a competitive firm is a price taker.

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The fundamental cause of monopoly is barriers to entry. It has three sources Ownership of a key resource.

Government gives a single firm the exclusive right to produce some good, such as patent and copyright laws.

Costs of production make a single producer more efficient than a large number of producers.

(www.oberlin.edu)

Like a competitive firm, a monopoly maximizes profit by producing the quantity at

which marginal cost and marginal revenue are equal. Nevertheless, unlike a competitive firm, its price exceeds its marginal revenue, so its price exceeds marginal cost.

Figure 1 Firgure

As we can see, perfect competition and monopoly are two absolutely different types of market structure. Which is more efficient? Which has more economic welfare? Firstly, have a look at figure above.

There are two types of efficiency we should pay attention to---productive efficiency and allocative efficiency. Productive efficiency is achieved when the output is produced at a minimum average total cost. Clearly, from figure , we can easily get the conclusion that firms in perfect competition are more productively efficient.

However, economic welfare has a close relationship with the other type of efficiency---allocative efficiency. It is achieved when the value consumers place on a good or service equals the cost of the resources used up in production. (Price=Marginal cost) When this condition is satisfied, total economic welfare is maximized. Again, from figure , we may get the conclusion that allocative efficiency is maximized under perfect competitive conditions. As can be seen in figure , part of consumer surplus is transferred to producer surplus from the perfect competitive market to the monopoly situation. Monopolists control the quantity they produce in order to charge a high price. So they have not allocated the scared resources efficiently. What makes monopoly inefficient is the existence of the area that is a wedge between the consumer¡¯s willingness to pay and the producer¡¯s cost. It is called deadweight welfare loss. In monopoly, the price is higher; the consumer surplus is lower and the producer surplus is higher than a competitive industry. Moreover, the output is lower; the monopoly will lead to a lower overall level of economic welfare. Marginal cost is less that price, so there is allocative inefficiency.

Economics has championed the notion that the best guarantee of social welfare is competition, and perfect competition has always been its ideal

(www.debunking-economics.com/)

All of the above seems to imply that a monopoly necessarily leads to higher price, lower quantity, and deadweight losses relative to perfect competition. But this may not be true, because a monopoly may be able to achieve cost saving unavailable to smaller firms. Consolidation to serve larger number of consumers can allow the firm to take advantage of greater specialization, moving to a lower ATC and corresponding MC. A typical example is natural monopoly that exists when one firm can produce at a lower ATC than can two or more firms because of economies of scale. So we have two effects of greater concentration (fewer firms with greater market share each) in an industry. First, competition is reduced, which tends to drive price up. Second, cost savings may be realized from economies of scale, which tends to drive price down. Which effect dominates? This is an empirical question and highly relevant to many policy questions. Anyway, MC under monopoly is not always the same as under perfect competition. If it is lower, the economic welfare in monopoly will be much more that it is in perfect competition. Because the monopolist in this stage has lower cost thus they charge lower price and produce larger quantity.

In order to gain more profit, monopolists practices price discrimination. It is defined as charging different prices of a same product to different consumers on the basis of non-cost-related characteristics of the consumers.

Examples of price discrimination

Movie prices (for students and seniors)

Airline prices (for business and personal)

Grocery coupons (¡®smart¡¯ versus casual shoppers)

In general, the most important factor for price discrimination is distinguishing different elasticties, to isolate people who are more or less sensitive to price. People with more elastic demand will tend to be charged a lower price; people with more demand will tend to be charged a higher price.

Price discrimination has two main effects. Firstly, it tends to transfer wealth from consumers to producers. Second, it tends to decrease deadweight loss for both consumers and producers.

Now look at figure 4.

MC

CS

DWL

PH

PM

PL

PS

D

QH QM QL

The area between PH and PM and to the left of QH is transferred from the CS to the PS, from consumers who have bought at the single-price monopoly price PM and now buy at the higher price PH. On the other hand, the triangle between PM and PL, between QM and QL, and below the demand curve, is an additional to CS that could have been deadweight loss under a single-price monopoly (because they would not have bought the good at all). The PS is everything left between the demand curve and MC that is not shaded in as CS or DWL.

So consumers as a whole may or may not benefit from price discrimination; it depends on which consumers one has in mind, and how the firm discriminates. As I mentioned before, the DWL is very important. To the extent that price discrimination reduces the size of DWL, it is more efficient.

Furthermore, if a firm can charge a different price for each consumer, with the exactly equal to the maximum price the consumer will pay, then perfect price discrimination occurs. There is no DWL under perfect price discrimination.

Obviously, the output of a multi-price monopoly will be higher than with a non-price discriminating monopoly. The deadweight loss is eliminated. Thus the economic welfare has been increased. Moreover, the increased output may lead to economies of scale and increased productive efficiency. On the other hand, the firm may use the profits from one market segment to allow low predatory prices in another. In the long run this increases monopoly power and prices are likely to rise.

(Adapt from ¡®Introductory Economics¡¯)

In conclusion, the ideal economic welfare can be gained in perfect competitive market. Firms in this market structure produce the largest quantity and sell their products at the lowest market prices. They produce goods and allocate resources efficiently. Monopolists, on the other hand, produce in a limited output in order that they can keep the market price high. This causes a deadweight welfare loss and reduces the economic welfare. However, there are some arguments for monopoly as well. They claim that monopolist may have access to economies of scale and have lower cost in production. So the sum of consumer surplus and producer surplus may be higher than in the perfect competition at this time. The problem is controversial and it is hard to get an answer. Anyway, if the monopoly practices price discrimination, they can make more profit. Moreover, economic welfare will increase owing to the reduce of deadweight welfare loss in this way.

References

DAVIS B., HARRISON B., SMITH C. (1) Introductory Economics London; The Macmillan Press LTD.

MANKIW N. G. (18) Principle of Economics U.S.A. The Dryden Pres

MAUNDER P., MILLER R.L., MYERS D., AND WALL N. (187)

Economics Explained London Collins Educational Company.

SLOMAN J. (18) Essentials of Economics Essex; Pearson Education Limited

www.oberlin.edu

www.debunking-economics.com/

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The central character in the novel, Jay Gatsby, longs for the past. He devotes most of his life trying to recapture his love affair that he once had with Daisy. As a younger man, he was in love with Daisy, but he could not marry her because of the difference in their social status. He leaves her to find wealth in order to reach her economic standards. Once this wealth is acquired, he moves near daisy. "Gatsby bought that house so that Daisy would be just across the bay." (8) He throws extravagant parties but watches them from a distance, hoping that one day Daisy will drop by.

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Nick attempts to show Gatsby that his dream will probably not come true, by saying that the past cannot be repeated. Gatsby replies by saying, yes you can. This shows the confidence he has in fulfilling his American Dream. Gatsby does not rest until his American Dream is finally fulfilled. However, it never comes about and he ends up paying the ultimate price for it, his life. Although Gatsby is killed, his dream dies before then. Moments before his death, Nick says, "He must have looked up at an unfamiliar sky through frightening leaves and shivered as he found what a grotesque thing a rose is and how raw the sunlight was upon scarcely created grass." (16) Gatsby's hopes and dreams are shattered as he lies in his pool, feeling as if his life has ended.

The idea of the American Dream still holds true in today's time as well as yesterday's. Whether it is wealth, love, or fame, everyone desires something in life. Mark Twain's novel, The Adventures of Huckleberry Finn, shows the journey of a young boy in search of freedom. The play, "Raisin in the Sun" portrays an African American family in search of making a better life for themselves. In conclusion, it can be demonstrated that throughout history, the American Dream can be portrayed through many different ways.

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Our staff of freelance writers includes over 120 experts proficient in Strand at Lough Beg, therefore you can rest assured that your assignment will be handled by only top rated specialists. Order your Strand at Lough Beg paper at affordable prices with custom essay service! The Part of this poem that is to be looked at first is imagery in the title of the poem. Shamus Heaney starts us off by giving us this picture of the Strand at Lough Beg, which is the shore of a lake. Already the reader is given the starting point of this story; the Kind of person that Colum McCartney is. Shamus Heaney begins the poem with an image of isolation, confusion, and the loss of safety. Heaney describes what happen the night that his cousin was killed Leaving the white glow of the filling stations. And a few lonely street lamps among the fields. You climbed the hills towards Newtownhamilton Past the Fews Forest. Out beneath the stars- (lines 1-4). The first few lines describe how his cousin started out in the glow of the gas station where he was, and him driving off to an open area in a town with the stars above him. The light here represented safety. Colum has started off in a situation where he was very close to this light where there was, most likely, a store and other people. After he is done at the gas station he then drives away. Heaney gives us the image of the lampposts passing by as he drove. This shows how the light was now outside of where he was but it was still with him. Finally he drives up to Newtownhamilton, passing some forests on the way and place where the only light that he is exposed to is the stars that are shining down at him from the sky. This now represents how the imminent safety that he had at the public gas station was now gone and he was isolated, in these hills only lit by stars. The safety in the light is now, far way leaving him exposed to anything "outside".

The image of the first few lines is of Colum now isolated, surrounded by silence, and open to the dangers they may be lurking. The succeeding lines are expressed through historical imagery. Along that road, a high, bare pilgrim's track Where Sweeney fled before the bloodied heads. Goat beards and dogs eyes in a demon pack Blazing out of the ground snapping and squealing. (Lines 5-8) In these few lines we are given this image of his cousin now driving down an isolated road. Heaney then bestows us with the gruesome image of these bloodied heads and animals referring to the story of Sweeney. This new character that Heaney intimated us to, Sweeney, is an Irish king (around 1000AD) who was titled as a madman for savagely killing a saint. The incentive behind the use of Sweeney was to give the reader the idea that this road is dangerous of that something bad is going to happen. Even though the image of "Goat beards and dogs eyes in a demon pack / Blazing out of the ground snapping and Squealing" is quite appalling and startling, Heaney adds this in order to give the reader a feeling of the unreal, world and that what is happening, really shouldn't be. "Blazing out of the ground snapping and squealing" represents how he thought the killers had approached his cousin in a surprise and unexpected mode. There is a sense of his whole world being intruded upon. It is now, in the middle of the first stanza, which we know that Shamus Heaney, himself, is not sure of what really happened that night. This is evident by the way he questions what he says is happening. What blazed ahead of you? A faked roadblock? The red lamp swung, the sudden brakes and stalling Engine, voices, heads hooded and the cold nosed gun? Or in your driving mirror tailing headlights that pulled out suddenly and flagged you down where you weren't known and far from what you knew.

The lowland clays and waters of Lough Beg. Church Island's spire its soft treeline of yew [Lines -16] Here he uses present imagery to describe what happened, and to make it seem more possible. Again, I think, he uses analogies to light to represent the level of safety around his cousin while this was going on. In line ten, he applies the image of a "red lamp" swinging. In the beginning of the poem we had the image of a white light in our minds, which represented goodness, and purity, but now we have a drastic transition to a red light, which gives us more of a sharp and "warning" sense around him. From these lines we also, now, get the audio connection of what is happening. In line ten and eleven all what he describes is through what Colum must of heard when he made that abrupt stop. This effect makes it even more horrifying because his Colum could probably sense what was going on and that he was in trouble. The description of the cold nose gun moreover makes it seem even more a brutal crime because it makes the killing seem more planned because the gun had still not been fired, as if the gun itself was waiting for him to come. In these lines we are taken back to the feeling of safety when Heaney says how Colum wasn't in familiar territory he was in hostile, protestant territory instead of Catholic. In referring to Lough Beg it implies that Colum's land was peaceful and that there wasn't any feeling of insecurity when you were there. In addition, he mentions that there is a Church near Lough Beg, giving the reader the sense that Lough Beg was a place to be considered close to sanctuary.

The poem takes a turn in the third stanza, and Heaney talks about the way that his cousin lived. Importantly, he also describes his cousin's nature and outlook on what was going on between the Protestants and Catholics. There you use to hear guns fired behind the house Long before rising time, when duck shooters Haunted the marigolds and bulrushes, But still were Scared to find spent cartridges, Acrid, brassy, genital, ejected, On your way across the strand to fetch the cows [Lines 17-] In these lines Heaney describes he lands that Colum lived on and the way he was effected by little things. For example, the fact that the firing of duck shooters scared him as a grown war reflected either how bad the war was (that every loud nose disturbed him and just reminded him of what was going on) or that he was so innocuous, like a child, that he couldn't make sense of what was happening around him. In this case, the reason behind his fear is combination of both these possibilities. I think that when Colum sees these cartridges of bullets he was get reminded of what was happening around him and showed that he feared war he was anti-war. For you and yours and yours and mine fought shy, Spoke an old language of conspirators and could not crack the whip or seize the day Big voiced scullions, herders, feelers round Haycocks and hindquarters, talkers in byres. Slow arbitrators of the burial ground. These few lines support the idea of him being innocent because he was a shy and timid person, not aggressive. He lived on a farm and was simple, he was not like the rest of the people who were always stressed about the problems they may have had; he was more laid back and satisfied. This stanza was to show how Colum McCartney didn't fit into the war picture and gave more reason towards how unnecessary his death was because he was neutral and wanted nothing to do with that war scene.

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In the third, and last stanza of the poem Shamus Heaney now brings into the poem, his own imagination and thoughts. He tells us the way he believes a person should be buried and what the experience of his cousin's death was like for him. "Across that strand of yours the cattle graze Up to their bellies in an early mist And now they turn their unbewildered gaze To where we work our way through speaking sedge The beginning of the third stanza suggests that it might be a continuation of the second because it describes, still, the environment that Colum lived in. I think that it was important that Heaney uses the farm animal the cow, in this poem. Out of all farm animals, cows would be most like the character of Colum. Cows are quiet and don't do anything to anyone, yet they are eventually killed for no good reason just how Colum McCartney was killed. Furthermore, the cows show how even they sense that the environment is not safe and that there is something wrong they know what is happening. The image of the mist is almost used as a way of transitioning from the environment of Colum, into the thoughts of Heaney. "Drowning in dew. Like a dull blade with its edge Honed bright. Lough Beg half-shines under the haze." I turn because the sweeping of your feet Has stopped behind me, to find you on your knees With blood and roadside muck in your hair and eyes, Then kneel in front of you in brimming grass In these lines Shamus Heaney discusses how he feels his relation ship with Colum was, and how it abruptly terminated. It is important that Heaney portrays the image of him and his cousin walking by the lake, to the viewer, in order to express how they had a good relationship because the lake represents safety ["Honed bright."] and positive feelings. Then he goes on to talk about this abrupt termination of his relationship by saying "because the sweeping of your feet / Has stopped behind me." Even though, in his description on how he believed things should have been, he describes Colum as bloody and dying at his knees, perhaps praying he wont die, this exhibits how drastically Heaney wished he could have at least seen his cousin before he died. On account of his cousin being killed in the middle of hostile territory, the chances were that Shamus Heaney never recovered Colum McCartney's body. And gather up cold handfuls of the dew to wash you. Cousin. I dab you clean with moss Fine as the drizzle out of a low cloud. I lift you under the arms and lay you flat. With rushes that shoot green again. I plait Green scapulars to wear over your shroud. [Lines -44] In these six lines Heaney describes the way Colum should of been buried. The way Heaney describes this cleansing of the body and clothing it was depicted in a very ritualistic and loving way. It showed how important it was to Heaney that his cousin was buried correctly and humanely. Shamus Heaney's The Strand at Lough Beg describes Colum McCartney's death in three different ways The way he might have died, why he shouldn't have died, and the way he should have been put to rest. It is important to notice how Heaney doesn't mention, once, any vindictive hatred towards the killers but instead focuses on love and an undying respect for the dead. The poem starts out with a tempestuous seen, that connects to all the readers senses and introduces us to the scene of his death. However, the poem develops into a loving and heartbreaking eulogy to Colum McCartney, through Heaney's expression of light, mystery, change, and way of living.

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Aspects of Marketing

Car Industry-Porsche

Organisational Markets buyers such as businesses, govt (military kit), hospitals to develop production of other goods.

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Energy oil, lubricant, petrol, water. E.g. Ford is biggest purchaser in UK car industry.

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International Markets Car companies like Porsche export its products to more than 50 countries while manufacturing takes place mainly in Germany. Allows them to develop new markets but adopt more risks.

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