Market Structure Research Paper Example | Topics and Well Written Essays - 1500 words

Market Structure - Research Paper Example (Eaton, Diane and Douglas, 2002 pp.93) The firm is in equilibrium if it maximizes profit defined as the difference between revenues and costs (** = R-C). The equilibrium point is where the firm produces the output that maximizes the difference between TR & TC curves as shown below. In the short term the firm will either be making excess profits or losses depending on the position of an AC curves i.e. if the AVC curve lays below the price the firm is making excess profit as shown below. It is only possible for the firm to be equilibrium. The short run without necessarily breaking even point. However, in the long run the firm will either make neither losses nor excess profit i.e. the break even point will be the equilibrium point for the firm as shown below. The supply of such a firm may be derived by the points of intersection of MC curve with the successive demand curve. Assuming that the market prices increase gradually the demand curve will tend to shift upwards. Given the slope of the MC curve is positive each higher demand curve cuts the given MC curve on a point which lies to the right of the previous intersection. This implies that the quantity supplied by firm increases as the price increases. (Eaton, Diane and Douglas, 2002 pp.85) Changing from perfect competition to a monopoly that changes a single price will have associated implications to the firm. This is because as a monopoly market the market structure will consist of one single firm that will deal with products that have no close substitute, there will be no free entry of into the market and the firm will be a price maker meaning that the amount sold in the market will depend on the price Q = F (P) The monopolist will have a normal demand curve Q = a - b P with an option of making either of the following two decisions: (1) the price - in this case the quantity will be determined by the customer (2) the quantity- in this case the price will be determined by the future of demand and supply in the market The demand is equal to the average revenue (P = AR) for the monopolist since: Q = a - b P b p = a - q P = a - Q or a - 1____ ____ ____ Q b b b TR = P Q but P = a - 1____ ____ Q b b AR = TR = (a/b) Q - (1/b) Q2 = (a/b) - (1-b) Q thus P = AR ________________ Q They all have a common intercept (a/b) with the MR curve being twice as steep as the AR or the Demand

Disclosure of information Essay Example | Topics and Well Written Essays - 500 words - 2

Disclosure of information - Essay Example I was taken aback by his/her early disclosure. That really turned me off. I know everybody has issues but I did not expect that he/she would tell me his/her domestic issue when he/she barely knew me. It is just too much information and too soon. And he/she is ruining the night. We we are supposed to have fun that night and not discuss domestic issues. With his/her early disclosure, the atmosphere suddenly became serious and problematic. I am no longer enjoying the date and could not wait to get off from that date. Especially when he/she mentioned that he/she wants to get married so that he/she can leave his/her house. I had the impression that this person is desperate and I am going to be used as an escape goat. It also gave me the impression that I will not be happy with this person because he/she has a lot of personal baggage. That if I will be in a relationship with this person, he/she will force me to settle down to serve his/her purpose of escaping her domestic issues. My relationship with that person literally ended on that night. Though he/she calls and texted afterwards, I no longer reply. He/She tried to set up us again but I am already avoiding him/her. His/her early disclosure about his/her domestic issues dampened the prospect of what could have been a wonderful relationship. It disappointed and frustrated my expectations too. I have been looking forward to be in relationship but the early disclosure tells me that this is going to be a problematic relationship and such, has to be avoided. The relationship did not progress after the first