Alternative Theories to Profit Maximization - 1839 Words

Alternative theories to profit maximization ranging from perfect competition to strict monopolies. Companies and The Market Most companies are profit oriented. Companies survive and live on profit. Even governmental institutions, NGOs and NPOs are profit oriented, what they do with profit is different though. Saying this means that companies seek always to be at a position where profit is maximized. As we know by now this happens when MC=MR but this is an always changing point as supply and demand are dynamic, effectively meaning that if firms get it right once they cant just do the same eternally, they still need to adapt to every market factor as a new change is a new reality all together that needs to be studied and addressed. All†¦show more content†¦One step away from perfect competition is monopolistic competition. This type of market structure has a number of different characteristics from the above. Which turn it into one of the most used market structures. In this scenario, companies are not all price takers and start making use of economies of scale in order to improve efficiency, reduc e costs and increase profits. In the scenario companies sell a differentiated product at different prices. Like in perfect competition no barriers are put to entry and newcomers a constant threat to the market keeping every player always in search for a better mean to produce and compete. An oligopoly, is when there are only a few number of companies that control a specific market. The barriers to entry can be both legal/political (ie. number of licenses awarded to cell phone operators) to the fact that the companies themselves create a cartel like attitude effectively brushing of the market new entrants through aggressive measures like undercutting pricing on new smaller entrants, controlling inputs for production, etc. On the other end of the market structures are monopolies. Monopolies are generally quite inefficient in the sense that consumers dont have a choice in terms of what to consume and generally speaking dont offer good value for money as the company dictates the price of the good irrespective of cost (as weShow MoreRelatedEconomics1185 Words   |  5 Pagesa Diseconomy of scale, which is when the firm are forced to produce units for Increase per unit cost. Moreover the LRAC contains SATC’s that are spread out over a larger range of output. 3. Question 3 Profit equals total revenue minus total cost. Every firm want to maximize profit, to do so they should keep producing more outputs as long as additional units maximize revenue than it adds to cost. Economists call the added revenue marginal revenue, which is the change in total revenue thatRead MoreWhy Do Firms Grow.928 Words   |  4 PagesThe traditional profit maximizing theories of the firm have been criticised for being unrealistic. As a result, alternative theories of the firm were introduced (Sloman Sutcliffe, 2001). One of the alternative theories of the firm is Growth maximization. Following are the main motives for the firms to grow: ïÆ'Ëœ The cost motive: A growth maximising firm can lower its long run average costs by exploiting economies of scale and economies of scope. Economies of scale come into effect when increasingRead MoreProfit Maximization Is Concerned With Marginal Income Essay1638 Words   |  7 PagesProfit maximization is concerned with the marginal revenue equaling marginal costs. I believe that in a lot of ways price discrimination does seek to embody the concepts of price maximization. Since different consumers do have varying degrees of demand, price discrimination seeks to charge the maximum that each person willing to pay. This strategy is often referred to as optimal pricing. When price discrimination is used, the airline will inevitable get some people to pay above the equilibrium priceRead MoreMonopoly : Monopolistic Market Situation1126 Words   |  5 Pagesabsence of alternative or substitute suppliers (Trageks, 2010). The case scenario in this study presents a monopolistic market situation. The fact that Futures Unlimited Corporation is the single license owner approved to distribute and control plutonium presents a monopolistic situation. Monopolistic markets post different results on organizations depending on the company s management decisions. Although many monopolies employ the single price strategy in ensuring the maximization of profits, the effectivenessRead MoreUse Of Mathematics On Economic Profit Maximization1269 Words   |  6 PagesEconomic Profit Maximization Introduction: Economics is a social science that deals with how individuals, governments, firms, and nations make decisions on allocating scarce resources to satisfy their unlimited wants. Economists use theories and mathematical models to provide solutions to many problems in decision making and forecasting in economics. I have decided to take a look at how math is used in the study of economics, specifically in economic models such as the profit maximization model orRead MoreOptimization and Linear Programming1499 Words   |  6 PagesDQ 17 A common form of the product-mix linear programming seeks to find the quantities of items in the product mix that maximizes profit in the presence of limited resources. -True Linear programming helps operations managers make decisions necessary to allocate resources. -True In linear programming, the unit profit or unit contribution associated with one decision variable can be affected by the quantity made of that variable or of any other variable in the problem. -False What combinationRead MoreWHY do business internationalise1149 Words   |  5 Pagesresource in order to profits maximization. The Internationalization motives include three points: to find the new customers and market for existing products and services; looking for low-cost resources and labour; build the core competitiveness. Next, the mainstream and alternative international business theory will be compare and contrast to answer why do business internationalise. Companies have many different ways to enter the international market. The new trade theory indicates that earlyRead MoreFishery Production Analysis1624 Words   |  7 Pagesor may not be intended. Introduction Fishery production has been analyzed extensively in the past, with both financial and sustainability interests providing ample motivation for investment in such research. Fisheries, which are driven by profit maximization behaviour, contribute significantly to the overall economies of many countries, which has subsequently led to increased concern of over-fishing and depletion of global marine stock. Governments must balance industry subsidies and regulationsRead MorePricing Policy1429 Words   |  6 Pagesprices in the market. This approach to pricing enables companies to either fit costs to prices or scrap products or services that cannot be generated cost-effectively. Through systematic pricing policies and strategies, companies can reap greater profits and increase or defend their market shares. FACTORS INVOLVED IN PRICING POLICY The pricing of the product involves consideration of the following factors: (i) Cost Data in Pricing: Cost data occupy an important place in the price setting processesRead MoreCognitive Economics : Behavioral Economics1115 Words   |  5 Pagesinter-temporal choice. Inter-temporal choice describes to how humans decide about what and how much to do at different times when decide at a time effect the facilities available at another time. Choice under risk or ambiguity relates the dual-system theory. Research suggests that people’s decisions can be affected by the â€Å"type and amount of information† they find. A behavioral equilibrium depends on people take from frequently acts their equilibrium strategies. Emotions, ethics, justice, well-being

Federalism Is A System Of Government - 1699 Words

â€Å"Nothing is more certain than the indispensable necessity of government, and it is equally undeniable, that whenever and however it is instituted, the people must cede to it some of their natural rights in order to vest it with requisite powers.† (Federalist No.2). According to dictionary,com, it defines the word federalism as â€Å"a political concept describing the practice whereby a group of members are bound by agreement or covenant. The word federalism comes from the Latin word foedus, which means covenant. Federalism refers to a system of government in which sovereignty is constitutionally shared between a central governing authority and constituent political units. Federalism is a system based upon democratic rules and institutions in which the power to govern is shared between national and provincial/state governments. The term federalist describes several political beliefs around the world depending on context. When the colonies were first coming along, the pe ople in the colonies were coming up with rules for their colony, but as the country developed, it was agreed that the country as a whole should have a set rules that should be followed by all of the colonies. Federalism was considered political compromise for the problems with the Articles of Confederation being not in favor of both liberals and conservatives. The Articles, specifically Article 1 section 8, made it possible for the continental congress the power to sign treaties and declare war. The articleShow MoreRelatedFederalism Is A System Of Government942 Words   |  4 Pagesmany nations the government has all of the authority. In the United States of America the national government doesn’t have all the power. The Tenth Amendment states, â€Å"The powers not delegated to the United States by the Constitution, nor prohibited by it to the states, are reserved to the states respectively, or to the people.† It essentially says that any power that is not given to the federal government is given to the people or the states. What is Federalism? Federalism is when more thanRead MoreThe Government Is A System Of The Dual Federalism1183 Words   |  5 PagesFederalism has numerous levels of government in which each of them have their own self-governing authority over some of the policy areas. It helps in balancing the power between the national and subunit governments. Various forms of the government are being observed internationally, including the confederation and unitary government. The Confederal government was the very first form of government the United States had that is held under the Articles of Confederation; in which the states hold theRead MoreFederalism Is Defined As A System Of Government2199 Words   |  9 PagesFederalism is defined as a system of government in which a single area, whether it be an entire country or a province within its borders, is controlled by two levels of government, each with their own respective strengths and weaknesses. In the United States, a form of Federalis m is practiced in which each of the fifty states are controlled by their own state government, and all fifty of the states collectively are controlled by the National, or Federal, Government. Both levels of our governmentRead MoreEssay on Federalism1371 Words   |  6 PagesFederalism Federalism is a widely accepted system of government in North American cultures. To many North Americans it seems to be the obvious choice for all world governments, but this is not the case. In all honesty, federalism is a fairly unique form of government. Out of approximately two hundred nations on the earth one hundred and eighty states practice unitary forms of government, leaving only twenty or so as federal nations (Winchester, 1999). Unitary forms of government consistRead MoreDifferences Between Dual Federalism And Cooperative Federalism969 Words   |  4 Pagesdual federalism and cooperative federalism? Be sure to fully address what federalism is and why it was created. 1000 words. Dual federalism is a term used to describe a circumstance in which national and state governments are sovereign and equal within their constitutionally allocated spheres of authority. Federalism is a concept that refers to a system of government in which power is shared between the national and non-national governments. Cooperative Federalism is a model of federalism in whichRead MoreThe Evolution of Federalism990 Words   |  4 PagesThe Evolution of the Constitution American federalism has changed drastically since its genesis. In 1776 the thirteen colonies adopted the Articles of Confederation in order to coordinate their efforts in the war for independence. The Articles of Confederation bound the states together in two main aspects; foreign and military affairs. The Articles of Confederation worked well while all the states had a common cause. However, as soon as the war ended and interests began to change, it became obviousRead MoreEssay about The Evolution of Federalism981 Words   |  4 Pages The Evolution of Federalism American federalism has changed drastically since its genesis. In 1776 the thirteen colonies adopted the Articles of Confederation in order to coordinate their efforts in the war for independence. The Articles of Confederation bound the states together in two main aspects; foreign and military affairs. The Articles of Confederation worked well while all the states had a common cause. However, as soon as the war ended and interests began to change, it became obviousRead More Federalism From Its Beginning To The Present Essay643 Words   |  3 Pagesstate today. The United States system of federalism has changed greatly through landmark court decisions, congressional decisions, and strong presidential influence. The next few paragraphs will go through the history of federalism in the United States. The Federal System began when the Framers wrote the Constitution. The Constitution set up the basic outline of the federal system. This system divided the powers between the national government and the state governments. Also, it bound the individualRead MoreDifferences Between Unitary And Federal System1524 Words   |  7 PagesResearch Paper: Federalism Usually people tend to take governmental institutions in account only at national levels. However, it is important to have a look at the lower levels as well, specifically at state or provincial levels. The major distinctions that can be made are between unitary and federal systems. Only the central government has the constitutional sovereignty and power in unitary system. The central government shares that constitutional sovereignty and power in subdivisions called, statesRead MoreFederalism Is A Key Component Of How The United States Government Operates Essay1225 Words   |  5 PagesFederalism is a key component of how the United States government operates. Many countries now are a federalist form of government. The definition of federalism is a governmental system in which national and regional governments share powers, and are considered independent equals (Smith and Greenblatt 29). Many countries now use a federalist system of government. The United States version of federalis m was enacted with the Constitution in 1787, and has evolved in different ways since then. Before

Direct Democracy vs Representative Democracy Essay Example For Students

Direct Democracy vs Representative Democracy Essay Direct Democracy vs Representative DemocracyThe term Democracy is derived from two Greek words, demos, meaningpeople, and kratos, meaning rule. These two words form the word democracy whichmeans rule by the people. Aristotle, and other ancient Greek politicalphilosophers, used the phrase, the governors are to be the governed, or as wehave come to know it, rule and be ruled in turn. The two major types of democracy are Representative Democracy and DirectDemocracy. Clearly the arguments for and against each form of democracy areplentiful. However, it is my belief that theoretically, Direct Democracy is thesuperior form of political rule. Due to problems with in the direct democraticsystem, its use as a practical form of government is not even thinkable. Therefore, in order for any form of democracy to function, RepresentativeDemocracy is the superior form of political rule. We will write a custom essay on Direct Democracy vs Representative Democracy specifically for you for only $16.38 $13.9/page Order now Jean Jacques Rousseau is considered by many to be the Grandfather ofdirect the democracy theory.Rousseaus ideal society would be where thecitizens were directly involved in the creation of the laws which are to governtheir lives. He maintained that, all citizens should meet together and decidewhat is best for the community and enact the appropriate laws. Any law whichwas not directly created by the citizens is not valid, and if those laws areimposed on people, that is equivalent to the people being enslaved. The citizens of a society must both develop and obey the supremedecision of the general will, which is the societys determination of thecommon good. It is not even thinkable that all citizens will agree on what goodis. Rousseau recognized this and accepted a term of majority rule. Those whovoted against a policy which is found to be the best for the general, must havebeen thinking of personal gains, rather than the gains of the entire society. The feature which distinguishes direct democracy from other forms ofgovernment is the idea of agreement and the key to agreement is discussion. Itis impossible to reach an agreement without discussion, because it is not rightto think that everybody will have the same opinion on all matters. But, it isvery possible, that through discussion an agreement could be reached by allmembers. Representation, on the other hand allows a select few to makedecisions in their own best interest, which is not necessarily the best interestof the society. However, direct democracy is not the perfect method to produce a unionof the community. For a direct democracy to work, face to face communicationbetween all members of the community is needed. The only way this is possibleis to meet in large groups. Due to the fear of high tension, many citizenswill not participate in these large group meeting. So in order for thesefearful people to voice their opinions they must get together in smaller, lesstensions groups, where they are not as timid to say as they wish to see happen. A direct democracy can only work in a small group, so as a form of governmentfor an entire community or country, direct democracy would definitely fail. Asthe membership increases, people become less involved. Once the membershipreaches the size of a country, the participation still exists, but is limited toas low as it can go. Thus in a country, any form of direct democracy is onlypossible in individual communities. In order for a committee small enough to operate on direct democracyprinciples to have any authority at all, it must represent a much larger group. .u2996bedd0686982cb5cabf5f76300b20 , .u2996bedd0686982cb5cabf5f76300b20 .postImageUrl , .u2996bedd0686982cb5cabf5f76300b20 .centered-text-area { min-height: 80px; position: relative; } .u2996bedd0686982cb5cabf5f76300b20 , .u2996bedd0686982cb5cabf5f76300b20:hover , .u2996bedd0686982cb5cabf5f76300b20:visited , .u2996bedd0686982cb5cabf5f76300b20:active { border:0!important; } .u2996bedd0686982cb5cabf5f76300b20 .clearfix:after { content: ""; display: table; clear: both; } .u2996bedd0686982cb5cabf5f76300b20 { display: block; transition: background-color 250ms; webkit-transition: background-color 250ms; width: 100%; opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #95A5A6; } .u2996bedd0686982cb5cabf5f76300b20:active , .u2996bedd0686982cb5cabf5f76300b20:hover { opacity: 1; transition: opacity 250ms; webkit-transition: opacity 250ms; background-color: #2C3E50; } .u2996bedd0686982cb5cabf5f76300b20 .centered-text-area { width: 100%; position: relative ; } .u2996bedd0686982cb5cabf5f76300b20 .ctaText { border-bottom: 0 solid #fff; color: #2980B9; font-size: 16px; font-weight: bold; margin: 0; padding: 0; text-decoration: underline; } .u2996bedd0686982cb5cabf5f76300b20 .postTitle { color: #FFFFFF; font-size: 16px; font-weight: 600; margin: 0; padding: 0; width: 100%; } .u2996bedd0686982cb5cabf5f76300b20 .ctaButton { background-color: #7F8C8D!important; color: #2980B9; border: none; border-radius: 3px; box-shadow: none; font-size: 14px; font-weight: bold; line-height: 26px; moz-border-radius: 3px; text-align: center; text-decoration: none; text-shadow: none; width: 80px; min-height: 80px; background: url(https://artscolumbia.org/wp-content/plugins/intelly-related-posts/assets/images/simple-arrow.png)no-repeat; position: absolute; right: 0; top: 0; } .u2996bedd0686982cb5cabf5f76300b20:hover .ctaButton { background-color: #34495E!important; } .u2996bedd0686982cb5cabf5f76300b20 .centered-text { display: table; height: 80px; padding-left : 18px; top: 0; } .u2996bedd0686982cb5cabf5f76300b20 .u2996bedd0686982cb5cabf5f76300b20-content { display: table-cell; margin: 0; padding: 0; padding-right: 108px; position: relative; vertical-align: middle; width: 100%; } .u2996bedd0686982cb5cabf5f76300b20:after { content: ""; display: block; clear: both; } READ: A Land Far, Far Away EssayMembership in this larger group is chosen by election, so the people still havea say in the ruling process. Since the rulers are selected by the people, therulers should represent what the public wants. Thus, out of direct democracy, isborn a new form of government, the Representative Democracy. Representative democracy is not democracy in its purest form. The mainargument against representative democracy is that No one can represent me. Imthe only one who knows what Im thinking and no one else can represent myviews. We have already learned it is also impossible to represent yourself. Through representation, chosen by the people, the hope is that all people willbe adequately represented. While everyone may not get all of their viewsrepresented all the time, representative democracy should create a situationwhere most of the views are represented. Direct democracy is not impossible in all situations, but in order forin to exist the following two characteristics must exist- The organization mustbe local, (limited in members) and the opinions of the members must be similarto each other. While these conditions are often found in a small organization,when looking at a country, these conditions are impossible to meet. In a mixed society direct democracy would lead to ineffective management,unwanted inefficiency, and political instability. While In a representativedemocracy, the representatives rely on political compromise to resolve conflicts,and develop policies that are flexible enough to meet shifting circumstances. The once dominant Greek culture has become out-of-date and along with itwent the hope for a direct democracy system of government. The direct democracytheory may have worked in the small Greek towns of 500BC, but in large modernsocieties, it simply could not work. Which is why the representative democracywas started, which, while providing the citizen with less opportunity forparticipation, is ideally suited for rule in modern times Thus, clearly adirect democracy is the only true form of democracy. However, if democracy is tobe is used in a modern society, it can not take its purist form. Philosophy

Responding To Stress Essays - Stress, Emotion, Eating Disorder

Responding to Stress Suppose that you are in your car in the middle of a traffic jam heading home from school after a terrible day. You feel frustrated and groan as you think about the calculus midterm you have tomorrow, which you still have to study for. Suddenly, you have to hit the brakes. Your heart starts beating faster and you insult the driver whom nearly made you crash. Are these reactions normal? Indeed they are, since they are merely examples of stress. Many everyday circumstances, such as deadlines, tests, debts, and conflicts in personal relationships are stressful. Routine hassles at home, school, and work may create strain that affects mental and physical health and decreases the quality of life because tension accumulates. Stress is an everyday occurrence that renders emotional, physiological, and behavioral responses. When people are under stress, they usually react emotionally. Emotional responses are a natural and normal part of life, although most of the time stress tends to elicit unpleasant emotions rather than pleasurable ones. However, these unpleasant emotions serve an important purpose, since sometimes stress can make one cry and crying functions as an excellent therapy to get rid of pressure. Some common emotional responses to stress include irritation, frustration, and depression. For instance, because many people undergo mood swings and become irritated as a reaction to stress, they may end up hurting their relatives or friends. Even more, some people might become frustrated as they notice that they cannot achieve what they want at a particular moment. This frustration makes one feel hopeless and leads to depression. Depression is the most common emotional response to stress. People, not being able to adapt to change appropriately, may feel overwhelmed and often fail to recognize that they have a problem. When the situation comes to the point of depression, it is necessary to seek professional help in order to avoid further psychological complications. Even more, physiological changes may also accompany emotional responses. Eating disorders, insomnia, and nervous breakdowns are the most common physiological responses associated with stress. Nowadays life is so agitating that it is common for people to disregard their eating habits because of so much pressure and work. This malnutrition includes not eating sufficiently or over-eating to cope with anxiety. Insomnia is another physiological response to stress. Humans cannot function well without sleep because sleeplessness directly affects behavior. Fatigue will make a restless person become less productive and this creates even more stress. Moreover, nervous breakdowns also constitute a direct physiological reaction to frustration. It is common for people to feel nervous when having to meet the demands of society because of pressure. A way to deal positively with stress must be found when physiological effects become apparent and there is a change in behavior. Emotional and physiological responses to stress can often lead to changes in behavior. For instance, because of depression caused by frustration people may not work to their full potential because stress takes away their desire to excel in daily activities. People might also behaviorally respond to stress by being aggressive towards others. Aggression is almost always caused by frustration, although people may aggressively attack those who have nothing to do with their problem. Verbal abuse is an example of this type of behavior. While being emotionally disturbed, people can sometimes insult those not responsible for their misfortunes. Similarly, once the situation turns to physical abuse, it is obvious that one needs to seek treatment. Even though aggressive behavior leads to a release of emotional tension, the interpersonal conflicts that often emerge increase stress. On the whole, behavioral changes caused by stress serve as a warning for those who need to take more positive actio ns to improve their reactions to stress. In brief, stress is a normal reaction to everyday circumstances that triggers emotional, physiological, and behavioral responses. Because our mental and physical health is affected by strain, it is necessary to find effective techniques to cope with stress. For instance, meditating while listening to comforting music helps to relax ones body and mind. Likewise, a soothing massage releases muscular tensions and immediately reduces pressure. In addition, a vigorous workout relieves stress, since one is able get distracted from the problem. Finally, talking