Taxation Essay: Government Regulation and Liberty

Taxiation Essay
TAXATION
Taxation
Taxation What extent of government regulation allows the citizens of the country the maximum
amount of liberty? How much should the government intervene to protect the consumer? These are
questions that every society must answer when developing their economic system. And for each
question there are multiple answers. Some believe that little to no regulation is necessary, that the
market place has natural laws of its own. Others disagree, saying that it is the government 's duty to
protect the individual from the evils of the free market. Both solutions have definite attributes. The
government intervenes the market to correct serious market failures. A market is defined as an
organization that allows ... Show more content on Helpwriting.net ...
The tax will affect the demand for cigarettes. It has been shown through several empirical studies
that imposition of taxes leads to a decrease in smoking. Those states that have imposed taxes have
witnessed lower levels of smoking and those states that have not imposed steep taxes have
witnessed lower levels of reduction in smoking. As smoking becomes more expensive, the number
of cigarettes smoked falls. There is no direct effect on the supply, however, when the demand for
cigarettes fall the supply will be reduced. Several factors of production that are employed in
producing cigarettes will be unemployed. Employees will have to leave for other industries. Land
and buildings that are involved in cigarette production and distribution will be reduced. For instance,
the New York offices of Altria are being closed down and about 400 workers will be laid off. The
increase in taxes will affect the equilibrium price and quantity. The price of cigarettes will go up
initially by $1 if a tax of $1 is imposed. However, in reaction to the additional taxation and
reduction in demand, cigarette companies will come up with some brands of cigarettes that cost less,
the net effect on price will be that the final prices of the cigarettes will increase, but if low price
introductions are taken into account the price increase will be lower than $1. In case of quantity,
there will be a
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MANAGERIAL REPORT Bangalore textile c Essay
MANAGERIAL REPORT – Assignment 1: – Bangalore Textile Company : Bangalore textile
company has in it's a possession a plant capable of producing 6 types of suit materials . this
production is currently realized by using a total of 40 machines divided in two categories , which are
regular machines and super machines . the regular machines can only afford the manufacturing of
materials types 1 ; 2 and 3 while the super machine are more flexible because they generate all 6
material types . knowing that there is 25 regular machines and 15 super machines in addition to a
plant operating capacity of 24 hours a day for the 30 days of next month , the company is obliged to
meet the customer demand requirements based on established forecasts ... Show more content on
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in what concerns the material type 2 and 3 , the first has been entirely purchased whilst a certain
quantity of the second was created by regular machines and the rest of the demand was purchased. –
The Total profit can be computed by adding benefits extracted form each material :
(4.4S1+4.4R1+1.95P1+4.2S2+4.2R2+2.15P2+4.7S3+4.7R3+
2.35P3+5.5S4+2.6P4+5.7S5+2.75P5+6.05S6+2.9P6) The profitable projected contribution is
reaching

Economic Models Are False And So Government Should Ignore...
Question 1. "Economic models are false and so government should ignore their predictions."
Explain, discuss and evaluate the accuracy of this statement. Answer 1: Economic models are the
imaginary concept which expresses economic procedure by using variables or quantitative
correlations. It is a simply method which uses mathematical and other technical aspects to show
complex processes. The statement stated above is false because with the help of the economic
models, government can predict about the future economy and make some changes in economic
behaviours to achieve highest possible outcome. Economy is an unstable factor and it has to be
monitored to understand and predict for the future benefit that is where the economic models are ...
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Beyond the PPF line, point 'E' is unattainable because resources are limited to get the further
outcome. At point 'D', the resources are not utilized fully which will creates the situation of
unemployment, less economic growth and many other economic impact. Any point inside the PPF
line is inefficient as either resources are not used fully or misallocated. Opportunity cost is the
choice made to get something by giving up another thing (Nash, n.d., para. 3). Here government
have two items to give emphasis computer and television. If government choose to produce
computer and wants to make digitalized study system then it has to forgone the television. In the
above figure, moving from point B to A, the quantity of television production increased by 2
thousands whereas the quantity of computer production decreased by 3 thousands. The opportunity
cost of 2 thousand televisions is 3 thousand computers (Besnek, 2017, slide 3). One of these
television cost 1.5 of computers production. Government must have to understand which the most
important thing to produce is and how to utilize the available resources efficiently to achieve the
maximum benefit for the country. This PPF model shows that, government have to accept and apply
the concept of predication in order to properly utilize the resources and get the maximum benefit.
Question 2. Using the economics or

Case Study Of Electrolux Cleans Up
Case 10.1: Electrolux Cleans Up
Introduction Electrolux cleans up is the largest domestic products manufacturing in the world,
Electrolux has about 70000 employees around the world and in about 150 countries for making 14
billion euros in sales on 2005. The first challenging place for Electrolux is at the times that that
Electrolux has decided to deprive its outdoor division. This is because a huge decrease sale in
following is expected. At 1920s, Electrolux has been famous for their expertise in industrial design
on product such as refrigeration and vacuum cleaner. The product was famous not only at their
country Sweden but also at Germany, France and United State. A large amount of accumulated cash
of the past, Electrolux decide to expend quickly through of acquisitions for more market share and
diversification. In late of 20th century, Electrolux discovered new market in developing country
when the market at the Western country are already have mature and showing the sign of going
down. There are the three important issues in Electrolux Company, which is about break down
barriers and communication, communication between department and how much teamwork and
group being success.
1. ... Show more content on Helpwriting.net ...
With the fierce competition threatening the success of Electrolux, the company upgrade their
strategy by nominate Hans Straberg as the new Chief Executive. The strain on the company's
finances left, Mr. Straberg with no choice but he change the way Electrolux does business. The
purpose of this case study is the way that and why Electrolux Chief Executive Straberg eliminate the
barrier and increase the communication between department, identify the advantaged of Electrolux
by having individuals from different department and functional areas work together on design the
product and the way use group and teamwork to succeed in a competitive

Opec : Research Report On Petroleum Exporting Countries
Kayle A Kaupanger
K Dorsey
Writing 122
17 October 2015
OPEC: Research Report
The Organization of Petroleum Exporting Countries, OPEC, is an organization that currently
consists of 13 of the top oil producing countries. OPEC ministers from Iran, Iraq, Kuwait, Saudi
Arabia, Venezuela, Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, and
Angola work to develop petroleum policies and regulate the stabilization of oil markets (OPEC).
The organization holds annual meetings in Vienna, Austria to production and regulations as well as
Ministerial Monitoring Committee, MMC, meetings twice a year to further develop basic policies
such as production and pricing (Levy). The MMC is a committee of one elected minister from each
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This organizations was founded on the hopes to "coordinate and unify the petroleum policies of its
Member Countries and ensure the stabilization of oil markets in order to secure an efficient,
economic and regular supply of petroleum to consumers, a[nd] steady income to producers"(OPEC).
In order to achieve this OPEC must be capable of maintaining a stable market, which is a task that
non–OPEC producers cannot and will not do. To do this, supply and demand must always be
perfectly balanced so as to keep prices within a range deemed reasonable (Cavallo 21).
Because the world market was saturated with non–OPEC oil during the first decade of the
organizations existence their power and influence was limited as evidenced by a failed oil embargo
against the U.S. Great Britain, and West Germany in 1967. This represents OPEC's first attempt at
manipulating the political climate as the embargo came in response to Israel's victory in the Six Day
War (Said). However, the 1970s were the decade in which OPEC established both its prominence in
the crude oil industry as well as its presence as a political power. During the Yom Kippur War in
1973 OPEC used its power in the oil market to deter the U.S. and other allies of Israel from coming
to their aid. Aware of possible repercussions, on October 19th U.S. President Richard Nixon
requested $2.2 billion to assist Israel, leading to an

Labor Economics
Labour intensity mode of production
Process where the ratio of labour to other inputs is relatively large. Where alternative techniques of
production are possible , labour intensity mode can be varied in response to changes in the relation
between real wages and the cost of using other inputs. A mode of production referrers to the way
production is carried out. Labour refers to the physical efforts or people are required to carry out a
process of production. Therefore a labour intensive mode of production where more labour is
employed than capital. Theory of value (economics):" Theory of value " is a generic term which
encompasses all the theories within economics that attempt to explain the exchange value or price of
goods and ... Show more content on Helpwriting.net ...
This ratio depends on what technique of production are easible.
Effective demand for labour
Effective demand for labour can be described as the price at which the consumer of labour are
willing and able to purchase labour. To put things in perspective, holding all other constant. If the
labour is low, the demand for labour is high, the demand for labour would be low.
Discuss the complementary and substitutability of labour and capital
Complementary: labour on its own can be viewed as human prowess to work and produce, and
capital can be viewed as man made means of production. Hence labour on capital go hand in hand
on issues like education, vocational duties like menial jobs etc. In such a situation when labor
increases capital increases and when labor reduces capital also reduces hence labor is directly
proportional to capital.
Substitute: labour and capital are indifferent in exchange e.g They are substitute to each other.
Substitutes on the other hand then implies a situation where factors operate independently of other
factors , therefore , for labor and capital to be substitutes it explains a situation where labor and
capital are employed to operate independently of each other but instead serve as substitutes of each
other. The substitutability of labor and capital implies an increase in labor, capital for labor
decreases, capital itself decreases, the

Fisher Price Essay
Fisher–Price – Company Overview Fisher–Price is a children's toy company, who is owned by the
parent company, Mattel. In 2015, Fisher–Price posted annual worldwide sales of $1.85 billion,
which was up 7% over the prior year. (Mattel, 2016) With Fisher–Price being a leader in the global
toy market, there is a significant opportunity and pressure to unveil and produce new and innovative
toys throughout the year, especially in the fourth quarter, which encompasses the holiday season.
Fisher–Price is known for toys geared towards younger children, usually from birth to age 8. While
they have a wide range of offerings that includes baby gear (swings, bouncers, high chairs, etc.),
their core business is toys. New Product Launch With evolving trends, Fisher–Price needs to stay
ahead of the competition and develop new and relevant toys to draw attention to their brand. One
way to do this is to unveil exclusive toy sets for specific retailers. These are usually larger sets with
more pieces or new color of an existing toy at a great value than what is offered for the general
competition. As an example, Fisher–Price exclusively manufactured a pink toy medical kit for Toys
R Us. This not only draws more customers into Toys R Us but it brings awareness and calls out the
Fisher–Price brand. With respect to the product launch at Toys R Us with the exclusive toy set, there
are risk factors that need to be understood to ensure they are cost effective and operationally sound

The Neoliberalism Phase Of Globalization
The Neoliberalism phase of globalization that has been going on from the 1970s until present day
took place after the Imperialism juncture and the Keynesian stage; which lasted from the 1820s
through the 1920s and the 1930s through the 1960s, respectively. The stage of globalization that is
taking place in our daily lives now, is mainly to benefit from economies of scale, exploit cheap
labor, respond to the increasingly global competition, benefit from low wages, and take advantage
from reduced taxes and regulations by moving into developing countries where there are cheap
subcontractors rather than manufacturing in developed countries where the cost of production is
very high and costly, in other words they went global to find financial gain. Unlike, the Imperialism
and the Keynesian phases which were mainly to benefit from declining transport costs, gain access
to new and foreign markets, and to compensate for inadequate domestic demand (selling their
product in a nation where the demand for a certain product is higher than the demand in the origin
country). Nike, a transnational corporation located in Oregon; the leading supplier and developer of
athletic shoes and apparel goods; with $27.04 billion USD in sales revenue for 2014
(http://www.forbes.com/companies/nike/) in contrast to Adidas, which has a sales revenue of $19.24
billion USD in 2014(http://www.forbes.com/companies/adidas/); experienced an explosive growth
since the 1970s, the industry has globalized widely

L. L Bean Company Tries To Increase The Equilibrium Price...
Everyone wants a pair of nice warm durable bean boots for cold winters. L.L. Bean company is
famous for making bean boots. Their bean boots have sold out every year, even when they increased
the prices. To meet the demand, L.L Bean tries to expand the boots' production. However, they are
worrying about the massive demand will disappear in the future. Buyers' preferences for popular and
fashionable product lead to the enormous demand of the bean boots. When the demand goes up and
supply stays unchanged, the equilibrium price of the boots goes up. People are willing to pay more
for the boots than before. If the market price is lower than the equilibrium price, there will be a
storage in the market. Then, the boots will sell out easily. Also, the company tries to increase the
supply to meet the demand. (Figure 1) However, L.L Bean can never control people preference.
They should increase their profit by adjusting labor and capital rather than simply by increasing
production. Also, to make sure people will buy all the boots, L.L Bean should set the market price
under the equilibrium price slightly to create the market storage. ... Show more content on
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As mentioned in article, the bean boots are handmade by 200 workers who split their time between
three shifts. The factory does not need 200 workers. They can also make same amount of production
by hiring 150 workers to split their time between two shifts. If L.L Bean cuts unnecessary workers,
the marginal production per labor increases, and the production frontier could have a steeper slope.
The slope of isoprofit will stay unchanged, because the ratio of the wage and rent stays unchanged.
Then, the production frontier will be tangent to the isoprofit on the profit–maximizing point where
L.L Bean can produce same quantity of production with less labor. At this point, L.L Bean will able
to make more profits due to the change of isoprofit. (Figure

The Point Of Oil Production Essay
I would like to discuss with you the breakeven point of oil production. Currently Saudi Arabia is one
of the leading producers of oil in the world. However, it is losing its foothold on the market. Many
countries, like North America, are increasing their oil production and are looking for ways to
become less dependent on foreign oil. The increased competition has caused oil prices to decrease.
By producing their own oil, countries not only will increase their revenues, but will also reduce their
need to rely on foreign oil. By reducing their need foreign an oil a country does not have to worry
that their oil supply will be cut off if they go to war. Another cause for the decline in oil prices is
caused by an increase in consumers purchasing more fuel efficient vehicles, such as hybrid or
electric vehicles. In many countries today, especially in North America, there has been an increased
demand for fuel efficient vehicles. This is evident in TV commercials which are advertising more
and more vehicles that get 40 to 50 miles per gallon, and by the ever increasing commercials for
electric vehicles. Consumers are tired of paying outrageous prices for oil and are demanding more
for their money. As this demand continues to grow, the demand for oil will decrease. Over the past
few years oil prices have been dropping. According to the U.S. Energy Information Administration
(eig.gov), a barrel of oil cost $86.07 on October 20, 2013. As of October 20, 2015 a barrel of oil

Beat the Market Game Report Essay
ROCHESTER INSTITUE OF TECHNOLOGY SAUNDERS COLLEGE OF BUSINESS SPRING
QUARTER 2012–2013 ECONOMIC FOR MANAGERS BTM Game Analysis Report Firm 1 Binal
Patel Kun Liao Ling Xiao Lei Wella Mohibi Yi xin Huang 1 1) Table of Contents 2) Introduction
and Summary Our performance in BTM game Market structure analysis Strategies of our firm 3)
Analysis of our problems in the BTM game MC and MR Plant size Price elasticity Training and
process improvement advertising, product development and E–commerce 4) How to improve our
performance in the future Macroeconomic analysis Competitor analysis Payoff matrix Kinked
demand 5) Conclusion 2 1. Introduction and Summary Our performance in BTM game Our ... Show
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In oligopoly market, each firm has substantial market power with high degree of interdependence.
The key for success in a oligopoly market is to gain more market share than the competitors.
Increasing the price can lead to loss of market share to the competitors, so in the oligopoly market, if
a firm decreases the price, the other firms will always follow, but if a firm increase the price, the
other firms will not follow. The demand curve is kinked. However, lowering the price decreases the
overall profit of the market thus, non–price competition is most important win–win strategy for all
the firm. As the game, does not allow us to make product differentiation, the other method that can
increase the sales are advertising, product development and E–commerce enhancement. If these
expenditures are below market average level, the firm can lose the market share. 4 Besides,
decreasing the production cost is also important as the firm can then lower the price. So the
decisions related to change in plant size, process improvement and the training are also important.
Strategies of our firm In oligopoly market, one important method to increase the market share is to
keep the price lower than competitors price. However, because at the beginning of the game, our
firm ignored the importance of the plant size, process improvement and the training, our production
cost was higher than other firms. So we could not use the

The Financial Future Of Saudi Arabia Essay
I would like to discuss with you the financial future of Saudi Arabia. Currently Saudi Arabia is one
of the leading producers of oil in the world. However, it is losing its foothold on the market. Many
countries, like North America, are increasing their oil production and are looking for ways to
become less dependent on foreign oil. The rise in competition has caused oil prices to drop. By
producing their own oil, countries not only will increase their revenues, but will also reduce their
reliance on foreign oil. By lowering their need for foreign oil, a country does not have to worry that
their oil supply will be cut off if they go to war. Another cause for the decline in oil prices is caused
by an increase in consumers purchasing more fuel efficient vehicles, such as hybrid or electric
vehicles. In many countries today, especially in North America, there has been a surge demand for
fuel efficient vehicles. This is evident in TV commercials which are advertising more and more
vehicles that get 40 to 50 miles per gallon, and by the proliferation of commercials for electric
vehicles. Consumers are tired of paying outrageous prices for oil and are demanding more for their
money. As this demand continues to grow, the demand for oil will plummet. Over the past few years
oil prices have been dropping. According to the U.S. Energy Information Administration (eig.gov), a
barrel of oil cost $86.07 on October 20, 2013. As of October 20, 2015 a barrel of oil sold for

Winter Is Coming Case
Data collected over the past several years has been determined to related to several pricing and
demand functions. It is the goal of this analysis expand these equations into a series of relevant
relationships. These families of equations are then analyzed so as to find the optimal solutions to the
company Winter is Coming's sales and production structure, allowing the firm to reach maximum
profitability. The company has observed their yearly business cycle can be better described by two
discreet sets of demand equations. The weekly demand based on price between November and April
is described in Figure 2. Figure 3 explains the price the firm is able to set and obtain based on the
number of coats they wish to sell in a given week. These ... Show more content on Helpwriting.net
...
Adding both fixed and variable costs into the equation made it possible to see, not only where the
firms maximum revenue lies, but where its maximum profit is. Finding the unitary price point of the
elasticity functions confirmed the optimization of the revenue functions, providing a greater level of
insight in the way in which consumers react to a change markets. Finally, analysis confirmed that
while the company generates revenue in the summer, it does not entirely offset its costs of
production. If they are able to maintain their brand and production facilities throughout the summer,
they would be better served financially if they halted summer production

Oil Drilling In The United States
Within the last year, oil prices in the United States have dropped significantly. As oil drilling in the
United States has reached its highest level in over 30 years, consumers are reaping the benefits.
Among these gains are record–low prices at the pump, and cheaper oil to heat homes. However, oil
prices did not just drop on their own; multiple factors contributed to the fall. Increased domestic
production, declining global demand, and competition from other oil–producing nations had led to
rapidly dropping oil prices across the United States. One of the largest contributing factors in
dropping oil prices in the increased production of oil in the United States. Oil production in the
United States is the highest it has been since 1972, with an average of 4.3 million barrels being
produced per day. A key factor of this increased production is due to new laws in the United States
that makes it easier to drill for oil. The United States has allowed for public lands to ... Show more
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Energy efficient alternatives to oil, such as solar power and hybrid cars, have grown in popularity
over the recent years. When gas prices were at an all time high, people began purchasing hybrid cars
to cut gas costs. For example, from 2010 to 2014, sales in electric cars increased by almost 120,000
cars a year. As demand for electric cars rose, demand for oil decreased. Moreover, decreased
consumption of oil in other parts of the world had led to less demand. Recent economic problems in
China, one of the largest importers of crude oil, and developing parts of the worlds have led to an
overall global drop in demand for oil. When a situation occurs where there is an excess amount in
the quantity of a product compared to the amount of product that is needed, the price of the item
drops. Similarly, as less oil is demanded throughout the world and a record number of oil is being
produced, the price of oil is driven

Factors Affecting Global Food Prices
Several different factors contributed to the increase in global food prices in 2011 and 2012, which
stimulated a number of international responses. Global food prices have increased markedly since
the early 2000s, reaching a historical peak in February 2011. Monthly changes in global prices for a
given commodity are recorded using the Food Price Index by the United Nation's Food and
Agriculture Organisation (FAO). The FAO Food Price Index comprises of the average price indices
for cereals, oils and fats, fairy products, meat and sugar, and considers the price at which these food
groups are sold and purchased globally. The Food Price Index increased from 89.6 in 2002 to 229.9
in 2011, an increase of more than 150%. Global food prices continued to escalate in 2012 when the
Food Price Index grew by 8% between December 2011 and March 2012, just falling short of the
February 2011 historical peak1. As food prices increased in 2011 and 2012, over 40 million people
were forced into poverty2. This paper examines several factors which contributed to the global
increase in food prices, including increased oil prices, increased biofuel production, adverse weather
conditions and increased food demand. The responses to the spike in global food prices in 2011 and
2012 will also be discussed. The paper will also discuss some of the suggested responses to the
increased food prices identified by the international community, such as increased agricultural
production, productivity and reserves

Dermaplus Analysis
Assignment Scope
Based on a rigorous analysis of the data provided, this report provides details with respect to the
profit–maximizing average daily production capacity for DermaPlusTM for each possible
reference–based price of $50, $100, and $150 per unit identified by the consultant. The estimated
expected daily profit at each price will also be provided. All unit and price values have been rounded
to the nearest whole number or dollar.
Information in terms of the recommended average daily production capacity in units for the next 12
months will be provided in order to set the size of the plant's unionized workforce. The assumption
is the quantity of units identified used to set the size of the workforce will maximize daily ... Show
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In the event that management's view is one that is pessimistic, the maximin rule would apply.
BioMed would set production at 342 units of production in order to minimize the maximum worst
payoff which is this case, is a loss of $249.
Management should be aware that both of the above options fail to consider any of the "good or
bad" outcomes.
BioMed management may also consider applying the minimax regret rule. Under this rule,
management would make a decision with the minimum worst potential regret by identifying the
maximum possible potential regret for each decision. In this case, production would be set at 407
units yielding a maximum possible regret of $1,526.
This report provides a clear recommendation for average daily production capacity for the next 12
months. The analysis and various decision rules will assist management to provide a direction that
will enable the best outcome when faced with uncertainty when combined with the risk tolerance.
Appendix I
Total Fixed Costs (TFC) = $9,000
Average Variable Costs (AVC) = 82.144 – 0.41197Q + 0.000711Q2
Total Costs (TC) = Total Fixed Costs + [Quantity x (Average Variable Costs)]
Total Costs (TC) = 9000 + Q*(82.144 – 0.41197Q + 0.000711Q2)

Marginal Costs (SMC) = a + 2bQ + 3cQ2
Marginal Costs (SMC) = 82.144 – [2(0.41197*Q)] + [3(0.000711*Q]2
Marginal Costs (SMC) = 82.144 – 0.82393Q + 0.002132Q2
Price Level = $50 per unit

The Production Of Oil Prices
Overview Over the past year oil prices have dropped significantly. This is mainly due due to an
increase in technology, which has allowed for a significant increase in the production of oil. The
United States whose top import is Oil has started to produce more oil domestically. Oil prices have
dropped from $110 a barrel of WTI to a whopping $41. This reduction in the demand for oil would
usually curb supply, but many countries are afraid to curb supply incase of loosing market power.
Another reason prices are dropping is people are being more environmentally conscious and
reducing there oil use. In recent years we have seen many alternative fuel sources introduced into
the market and people seem to gain utility from "going green" even if it cost more. The reduction in
oil prices is heavily affecting economies that are reliant on oil exports. Oil prices, which continue to
drop, are negatively affecting the GDP of countries who are reliant on oil exports. This drop in
prices is can be simply by supply and demand there is most evidently a higher supply of oil then
demand has brought prices down. Since the oilrigs have already been drilled countries rather sell oil
at a loss then not sell any oil at all, so that some of the money can be recovered. This means
countries are choosing not to curb the supply but continue to produce even though the market price
is so low. Overview of Norway Norway is a country that is heavily reliant on oil exports. In fact
there top three

A Study on Opportunity,Total, and Marginal Costs
Opportunity costs, total costs and marginal costs What are opportunity costs? How do explicit and
implicit costs relate to opportunity costs? Opportunity cost is the value of the best alternative that
one gives up for the current choice or decision. It is an important concept in economics and is used
for emphasizing the relationship between scarcity and choice. It is the cost sacrificed or foregone in
any decision. These opportunity costs extend to all aspects of production and consumption. Two
costs related to opportunity costs are explicit and implicit costs. Explicit costs is the direct monetary
payment or expense that a producer incurs by choosing one option over another. For example, a firm
incurs $1000 as wages for workers when it decides to produce steel pans instead of cast–iron pans
and this $1000 is considered as the explicit opportunity cost for the production of steel pans.
Implicit costs, on the other hand, are those that cannot be measured directly and do not involve any
monetary payments. A good example is when someone chooses between working and staying at
home for personal reasons. The implicit opportunity cost is the salary that is lost by not working and
staying at home to pursue a passion. Â If the average total cost curve is falling, what is necessarily
true of the marginal cost curve? If the average total cost curve is rising, what is necessarily true of
the marginal cost curve? The total cost curve (TC) is the cost of production for a company

Oil And Demand For Oil
Crude oil is one of the most economically mature commodity markets in the world. Even though
most crude oil is produced by a relatively small number of companies, and often in remote locations
that are very far from the point of consumption but it is shipped all over the world. The global
supply and demand determines prices for oil. Events around the world can affect the prices at our
home for oil–based energy. OPEC, the large oil–producing cartel, does have the ability to influence
world prices, but OPEC 's influence in the world oil market is shrinking rapidly as new supplies in
non–OPEC countries such as U.S. are discovered and developed.
DISCUSSION
There are various factors which are currently driving the world demand for oil which are as under
along with the explanation about how they caused oil prices to drop:
 OPEC (The Organization of Petroleum Exporting Countries):
OPEC, a consortium of 13 countries it is the single largest entity impacting the world's oil supplies.
It is responsible for 40% of the world's oil production, and sets policies among member countries to
meet global consumption. OPEC can affect the price of crude oil, by increasing or reducing
production among member countries. But unwilling to stabilize the oil market, the OPEC nations
which is the cartel of oil production, led to sharp price drop of crude oil. Price of OPEC benchmark
crude oil have fallen 50% since the organisation has decided against cutting production at a 2014
meeting in Vienna.
If

Opec Stands For Organization Of The Petroleum Exporting...
OPEC reaches deal to cut production, sending prices Soaring. OPEC stands for Organization of the
petroleum Exporting countries. It is an intergovernmental organization of fourteen nation. It
coordinates petroleum policies and stabilize the oil market. This will help them secure regular
supply of petroleum in order to keep a study income and growth. Petroleum have become one of the
most powerful asset or natural resource that any nation could have. And because it's so Important it
has changed the world for the good and worst. Petroleum has lead into wars and it has also tightened
international relationships. One of the reason, that there are some kayos in some part of the middle
east is because of Petroleum. OPEC is founded in Bagdad its head quarter is in Vienna. Two third of
OPEC population is founded in the middle east countries that surround the Persian Gulf. The most
Important goal for OPEC is to make profit for the members. Because there is no real substitute for
oil, OPEC reduces production and then increases Price for oil. Because it's hard to control all
countries production, especially the countries that are not a member of OPEC , it has been hard for
OPEC to have firm a control over the Petroleum market. Because the Petroleum Industries are
Oligopoly this relates to chapter 13 which is Oligopoly and Strategic Behavior. OPEC is a cartel
which mean one of its main goal is to control the production and aim for profit

Marking
Top of Form
1 . Purely competitive firms increase total revenue by A. increasing production B. decreasing
production C. increasing price D. decreasing price
Bottom of Form
Correct :
To increase revenue, firms look to increase price or quantity, as price multiplied by quantity equals
total revenue. Purely competitive firms can sell as much as they want at the market price. Adding
additional units of the product does not result in a change in the market price. Therefore, since
purely competitive firms do not influence price, they increase total revenue by increasing quantity.
Materials Profit–Maximizing Case
Top of Form
2 . What are two ways for a competitive firm to determine the optimal level of ... Show more content
on Helpwriting.net ...
It is profitable for a firm to continue employing additional resources as long as A. Marginal Revenue
Product >= Marginal Resource Cost B. Marginal Revenue Product = Marginal cost D. Marginal
Revenue Product >= Price
Bottom of Form
Correct :
As with the optimal level of production for a good, the optimal usage of a resource is determined by
ensuring that the revenue from that resource is at least equal to the marginal cost of that resource.
Materials Rule for Employing Resources: MRP = MRC
Top of Form
5 . As additional units are produced, the marginal revenue product falls for all firms because
marginal product decreases. For firms operating in industries that are not perfectly competitive,
marginal revenue product also

Cmi Project Essay
Dated: June 19, 2013
To: Paul Singer,
President
From: Eric Hunter,
Corporate Controller
Subject: Analysis of Company's Current Situation
Dear Paul,
After our meeting and analyzing the facts and figures available thoroughly, I came across the
following short term as well as long term issues:
1. Short term issues:
1.1. Requirement to increase the transfer price of carburetors to $ 500
1.2. Impacts of Carburetor Production discontinuance on Engine Division(ED)
2. Long term issues:
2.1. Performance and Organization structure of Division – Profit centers or cost center
2.2. Transfer pricing guidelines needed to be revisited
2.3. Implication of Tax and duties and compliance issues
2.4. ED Capacity constraints
Following are my ... Show more content on Helpwriting.net ...
Therefore, each division should be autonomous in its decision making. This, however, is not the
case with our company. As a matter of fact, the corporate office is influencing and forcing divisions
to make the buy and sell decisions from each other at the instructed price of 1.25 times of full
production costs. To be a true profit center, the divisions should have the authority to determine and
negotiate prices of their products either based on market or through internal resources to ensure
profitability. In addition, to be able to ensure operational excellence, managing the costs such as
production cost, administrative and selling overheads, should be a priority.
The intervention from the corporate office is rather a de–motivating factor for ED when the division
is not allowed to sell at the market price and it cannot sell disregarding the internal clients in the
market to be profitable. On the other hand SD was taking the benefit of this low transfer price from
ED and a high transfer out price to ID, thus reporting a ROI of 15%. When analyzing based on the
market prices, we noted that SD is in fact not contributing to the corporate profitability. That is
another shortcoming that the decisions of both divisions are affected; one is considering dumping a
product having high contribution margins, while the other is

Microeconomics And The Laws Of Supply And Demand Essay
Microeconomics and the Laws of Supply and Demand Microeconomics and the Law of Demand as
reviewed in the Khan Academy videos are a simple enlightening of the business cycle. The
descriptive teaching and evolving facts of real life cause and effects in the cycle of business
production and supply are an exquisite piece of material. The concepts relation to microeconomics
are demand, markets cost and price, they are listed in true relation to the area's they occupy in
analysis of the mathematical formula of how they are defined in economic literature and
explanation. Through each cycle of change they apply to business production. The concepts role is
used to identify economical factors that allow adjustment in areas that may affect revenues in–put
and out–put or Short run or Long run, margins cost and market distribution tied to overall success.
In the form of efficiency and growth, if a solid understanding is applied using a structured fiscal
plan with total cost, resources cost, production cost, market and demand will provide an upper hand
in preventing fiscal self destruction. The mathematical approach and visual graphing, price vs.
quantity of production will provide a stopping point for the companies buyer, providing reason for
limitations as the identifier to prevent probable revenue/cost inflation or loss. As identified above
Demand, Marketing and Price are categorized as microeconomics, due to the cause and effect they
share in relation to one another. If there is a

Chaser Essay
Philosophy 6: Ethical Issues in Business Midterm Essay Chase Novak Dr. Parker Need or Greed?
New Protocol: How Drug's Rebirth as Treatment for Cancer Fueled Price Rises Immanuel Kant–
Kantian Deontology John Locke– The Justification of Private Property Adam Smith–Benefits of the
Profit Motive Milton Friedman– The Social Responsibility of Business Is to Increase Its Profits
Thesis: An examination of the case study New Protocol: How Drug's Rebirth as Treatment for
Cancer Fueled Price Rises relies heavily on a keen understanding of the social and economic
implications of a capitalist system, and once taken into account it is clear that Celgene Corp. is
justified in raising prices based on the business market philosophies asserted by ... Show more
Though many critics of Celgene would call the corporation's decision to raise prices a genuinely
greedy and selfish act, Smith sees nothing wrong with such a move. On this issue Smith states that
an individuals self–centered motives often improve society: "By pursuing his own interests he
frequently promotes that of the society more effectually than when he really intends to promote it"
(Donaldson, 167). Given Celgene's perceived self–centered actions, Smith would note that this type
of free market behavior is positive and is guided by an "invisible hand" which helps such behavior
to be beneficial to society as a whole. The next philosopher to be examined would argue that the
"invisible hand" that Smith speaks of is indeed separate from the political realm. Milton Friedman
continues with Smith's line of logic as he asserts that the chief concern of the businessman must be
to make a profit under socially acceptable means and that the defining of "social responsibilities"
must be left in the political sphere. Celgene's chief executive, John Jackson, was the primary force
behind the company's decision to raise prices. Jackson's actions are perfectly ethical according to
Friedman who writes, "What does it mean to say that the corporate executive has a "social
responsibility" in his capacity as a businessman? If this statement is not pure rhetoric, it must mean
that he is to act in some way that is not in the interest of

Opec And The Price Of Oil
OPEC and the price of oil
The organization of the petroleum exporting countries or OPEC was created at Baghdad Conference
in Iraq in September 1960. The founding members of organization were Iran, Iraq, Kuwait, Saudi
Arabia and Venezuela. These five states were later joined by nine other countries: Qatar (1961),
Indonesia (1962), Libya (1962), United Arab Emirates (1967), Algeria (1969), Nigeria (1971),
Ecuador (1973), Gabon (1975), and Angola (2007). Ecuador and Gabon withdrew from the
organization in 1992 and 1994 as Indonesia in 2007 respectively. OPEC relocated its headquarters
from Geneva to Vienna in 1960. The purpose of OPEC, as with any cartel, is to limit supplies in the
hope of keeping the price high. The oil industry has been plagued by production booms and falling
prices ever since Colonel Drakes' discovery of oil at Titusville, Pennsylvania in 1859. Just as major
oil companies colluded from the 1920's to the 1960's to present prices and profits from falling,
members of OPEC meet at a regular basis to set production levels in the hop of maintaining prices.
The essential nature of oil (no substitutes) coupled with its limited number of suppliers make it the
ideal product monopoly.
"When OPEC was formed in 1960, its main goal was to prevent its compromise the world's largest
oil producers, refiners, and marketers–from lowering the price of oil, which they had always
specified, or reported. OPEC members sought to gain greater control over oil prices by

How is Walmart Able to Keep Track of its Inventory? Essay
Walmart Case Study
How is Walmart able to keep track of its inventory? Why is this important?
The Walmart is able to keep track of its inventory with the help of a little gadget called, Telson. It
scans the bar code which is not just a simple thing but it is almost like an encyclopedia as it tells all
the information. The power of information is hidden in a bar code. It is very important as it keeps
track of all the sales for example what is being sold, when is it being sold, history, sale prices and
trend prices.
What effects has this inventory system had on producers?
The super computer, Telson records all the sales. The order is automatically generated that evening.
At midnight, the warehouse fills that order and it sits back on ... Show more content on
Helpwriting.net ...
Walmart has friendly and cheap price of items for each category like electronics and groceries in all
the aisle to lure costumers.
How exactly has Walmart kept its prices so low?
Walmart has kept its prices so low by cutting–edge technology, corporate culture and put in their
efforts to make the suppliers to lower the prices and sell goods as low as possible. The basic goal of
Walmart is to keep their prices low and it has always been successful at this.
As Walmart uses standard and less number of component parts, it maintains low operation and
production cost. It offers low wages to workers and leases sites in low rent areas as it tries to keep
overhead expenses to a minimum. Goods are manufactured in countries where labor is very cheap. It
controls production costs and limits costs that is involved in outsourcing, distribution and
advertising to keep up with low operation costs in every aspect of its business.
In 1994, President Clinton said that new trade agreements would create a market for American
products in China. What happened after opening trade with China?
Schengen, is the third biggest busiest port of China in the whole world. There are 35 Walmart
supercenters in China. Every year, China exports $15 billion valued products to Walmart and

imports 90 percent to North America and Europe. Walmart is the main source of sales for America.
Whereas, California, America imports $36 billion valued goods and exports $3 billion raw materials

Explain The Outlines The Production Process
Chapter five outlines the health care providers cost production process. The production functions are
the relationship between the quantity the producer is willing to supply and the variables used to
decide price and quantity for sale. The intention of the cost production is to convert input (i.e. labor,
land, knowledge) into output/finished products or services. The variables used that influence the
suppliers are input price, case mix, and technology. In the medical domain, the production function
includes fixed input and variable input. In the short–term, the fixed input is restricted to a production
cycle and duty, a fixed variable. Whereas, the variable input is an input whose quantity can change
or adjust at any time. On a graph,

Oil Prices: Driven by Supply and Demand
1. Oil prices are almost entirely driven by supply and demand. On the supply side, OPEC seeks to
control the prices by virtue of controlling the output of its member countries, which are responsible
for around one–third of the world's oil production (OPEC, 2012). That OPEC can do this is
facilitated by the fact that bringing new oil production online takes a long time. Thus, by setting
output on a monthly basis, OPEC can control the supply. OPEC's actions have a strong influence on
prices because demand is largely predictable and incremental. The demand this month will be
related to the demand next month, since oil demand tends to be for usage of a recurring nature.
Over the longer–term, some of the major trends that affect the price of oil are consumption for
business and personal use. For example, Anderson and Boul (2005) note that China's economic
growth has resulted in that nation having steadily increasing demand for oil. Much of this comes
from growth of the country's consumer class, with automobile sales, and from growth in industrial
uses for oil. India, the US, and the world's modern economies are all big users of oil, so the drivers
of demand in these nations can have an impact on world markets for oil.
2. According to Anderson and Boul (2005), the two largest consumers of oil products are the United
States and China. China is one of the major contributors to the growth in oil consumption as well.
3. a. If the price of SUVs falls, this affects the demand

Economics: Agriculture in Sa
In a free market, industry is free of government intervention and regulation. Businesses therefore
have the liberty to allocate resources how they wish, and to set prices at a level preferable to them
individually – so long as these prices remain realistic and competitive. They logically vary
depending on the economic climate in which the business operates. In some cases businesses take
advantage of the seemingly boundless market in which they operate, and as a result price fixing may
occur. In such a case, intervention is acceptable as an exception to the free market concept. The
decision by grain farmers to ignore the suggestions of Grain SA to reduce production is an
interesting real–world example of a market operating independently ... Show more content on
Helpwriting.net ...
The cost of production credit also increased by the same percentage. Coetzee claims that this
phenomenon and the above information explain why farming has become an activity in which price
and yield risk is so high, and especially why farmers with minimal debt and better land are the
favourites to survive the current economic situation (2008:34). The lack of debt and the superior
land quality enable farmers to reduce the negative effects of the unstable economic climate on their
operations, and to compete efficiently with farmers who operate without these advantages. Due to
the above, and the relative inelasticity of demand, the diminishing gap between production costs and
producer prices means that the profit margin obtained from selling each ton of grain is being
reduced, and farmers produce more in an attempt to counteract this: Grain SA (2005). The situation
which is created as a result of this, however, is not optimal. In order to solve the surplus problem,
producer prices are reduced significantly and farmers will find it very difficult of cover their costs
and still make a sizeable profit. Another factor which may have caused farmers to increase supply
instead of decrease it, is production uncertainty – in which case producers may lack knowledge of
the elements which affected this economic decision: Deardorff's Glossary of International
Economics (2000). The most relevant of these

Outsourcing And Outsourcing : Outsourcing
A company is a collection or an association of given individuals regardless of whether legal
individuals, natural people of a combination of both. Most companies usually face stiff competitions
from their worthy opponents in the field of services delivery to customers. They in most cases
compete in terms of the goods and services that they produce and offer to their customers.
Competition is mainly the rivalry among the companies, firms, sellers in references to achieving
their goals of making profits, selling large volume of their produce, having the largest share of
market sale by varying the marketing prices, the distribution of products and even promotions.
Therefore to achieve better competition so as not to lose to other competitors, ... Show more content
When the offshoring is to be done so as to beat the competitors, the stakeholders will be affected in
that the suppliers of the raw materials will be disadvantaged due to stoppage of their supply as a
result of sourcing cheap raw materials and a reduced delivery cost from other countries. The
community surrounding the company will also be affected as the suppliers since it's the source of the
raw material while the owners will be advantaged by the reduced production cost leading to high–
profit gain.
The transformation change of the management plan has mainly been initiated by the small sales and
losses incurred by the company. When the competition has been lost to other companies, they attract
more customers and sell more. This stiff competition has therefore initiated a new transformation
plan on how to change the system of the management plan to catch up with competitors in the field.
The changes like offshoring are therefore meant to ensure reduced cost of production and low
delivery cost of the ordered items which will translate into affordable products prices to customers
to help in attracting the customers in the market platform (Bruno Dyck, 2008).
The plan of offshoring is of advantages as far as matching the stiff competition in the field is
concerned and also disadvantages too. The stakeholders such as the owners, creditors, directors

Economics Problems Set 1
MBA–FP6008: Assessment 1, Economics Problem Set 1 Dennis J. Johnson Capella University
08/12/2015 Problems A, B, and C Introduction This assessment will be an analysis of graphed data
and changes in supply and demand for three economic problems. Problem A involves production
possibilities for consumer and capital goods, problem B is an evaluation of changes in supply and
demand equilibrium, and finally, problem C involves pricing with relevance to supply and demand.
Successful completion of this assessment demonstrates proficiency in; applying theories, models,
and practices of economic theory, analyzing solutions with support from relevant data, resources,
references, and economic principles, analyzing graphed and circular ... Show more content on
Helpwriting.net ...
3. If hypothetically the economy were producing only1 butter and 10 guns, it could be concludes
increasing opportunity cost, because when the graph moves from A to E, it must give up larger
amounts of butter to acquire equal amounts of guns. This is shown through the slope of the
production possibilities curve, which gets steeper as we move from A to E (McConnell, Brue, Flynn,
2015) 4. Production outside the production possibility curve would currently be unattainable. The
production that is attainable is inside of, on the shape of, or on the line of the curve. Technological
changes such as production methods, could allow for attainability of production outside of the curve,
as technological advancements may allow production of more guns and butter. International trade
permit consumption also allows for production beyond the possibilities curve, in that the country
being traded to may specialize in guns and butter. We could trade something that we produce at a
very low opportunity cost, therefore making production of guns and butter cost less. (McConnell,
Brue, Flynn 2015) Problem B. Evaluate each of the following changes in supply and/or demand.
How will each affect equilibrium price and quantity in a competitive market? Will price and quantity
rise, fall, or be unchanged? Based on shifts, will the answers be indeterminate? 1. Supply decreases
and

Acrylonitrile Butadiene Styrene Copolymers Industry 2013...
The report firstly introduced Acrylonitrile butadiene Styrene copolymers(ABS) basic information
included Acrylonitrile butadiene Styrene copolymers(ABS) definition classification application
industry chain structure industry overview; international market analysis, China domestic market
analysis, Macroeconomic environment and economic situation analysis and influence, Acrylonitrile
butadiene Styrene copolymers(ABS) industry policy and plan, Acrylonitrile butadiene Styrene
copolymers(ABS) product specification, manufacturing process, product cost structure etc. Browse
Full Report with TOC @ http://www.qyresearchreports.com/report/global–and–china–acrylonitrile–
butadiene–styrene–copolymersabs–industry–2013–market–research–report.htm ... Show more
tatus 2.2.5 Acrylonitrile butadiene Styrene copolymers(ABS) China Market Development Trend 2.3
Acrylonitrile butadiene Styrene copolymers(ABS) International and China Market Comparison
Analysis Chapter Three Acrylonitrile butadiene Styrene copolymers(ABS) Development
Environmental Analysis 3.1 China Macroeconomic Environment Analysis 3.1.1 China GDP
Analysis 3.1.2 China CPI Analysis 3.2 European Economic Environmental Analysis 3.3 United
States Economic Environmental Analysis 3.4 Japan Economic Environmental Analysis 3.5 Global
Economic Environmental Analysis Chapter Four Acrylonitrile butadiene Styrene copolymers(ABS)
Development Policy and Plan 4.1 Acrylonitrile butadiene Styrene copolymers(ABS) Industry Policy
Analysis 4.2 Acrylonitrile butadiene Styrene copolymers(ABS) Industry News Analysis 4.3
Acrylonitrile butadiene Styrene copolymers(ABS) Industry Development Trend Chapter Five
Acrylonitrile butadiene Styrene copolymers(ABS) Manufacturing Process and Cost Structure 5.1
Acrylonitrile butadiene Styrene copolymers(ABS) Product Specifications 5.2 Acrylonitrile
butadiene Styrene copolymers(ABS) Manufacturing Process Analysis 5.3 Acrylonitrile butadiene
Styrene copolymers(ABS) Cost Structure Analysis 5.4 Acrylonitrile butadiene Styrene
copolymers(ABS) Price Cost Gross Analysis Chapter Six 2009–2014 Acrylonitrile butadiene
Styrene copolymers(ABS) Productions Supply Sales Demand Market Status and Forecast 6.1 2009–
2014 Acrylonitrile butadiene

Oil Industry In Canada Essay
Canada has a large stake in the international oil market. It is currently the 6th largest producer of
crude oil and last year the Canadian oil industry produced 3.8 million barrels of oil per day
(Canadian Association of Petroleum Produces, 2016). Since oil is a significant part of the Canadian
economy, fluctuations in the international price of oil will affect all Canadians. However, due to the
fact that some provinces produce more oil than they consume and others consume way more than
they produce, the impact of a significant increase in international oil prices on Canadians will be
dependent on which province they reside in. More specifically an increase will positively impact the
economic welfare of Canadians living or operating in resource rich provinces but will have a
negative impact on the economic welfare of Canadians living or operating in ... Show more content
The increase in international oil prices will affect many of these factors is all provinces which will
result in either a positive or negative impact on output. For the big three provinces, the factors that
will be greatly affected if the international oil price were to significantly increase are net exports and
consumption. In these provinces their main exports are energy commodities which include oil. For
example in Alberta, energy commodities accounted for 67% of their total exports in 2012
(Government of Alberta, 2013). Oil is a necessity good, so there will always be a demand for it. Due
to this an increase in the price of oil generally increases the revenue for oil companies. For example
in Iraq, the 4th largest producer of crude oil in the world, officials say that "for every $1 increase in
the price of a barrel of oil, their revenues jump by $1 billion per year" (Bloomberg 2016). An
increase in the value of exports increases the output of the big three provinces and shifts the output
curve

Economic Growth Essay
Economic Growth Economic growth refers to the rate of increase in the total production of goods
and services within an economy. Economic growth increases the productivity capacity of an
economy, thereby allowing more wants to be satisfied. A growing economy increases employment
opportunities, stimulates business enterprise and innovation. A sustained economic growth is
fundamental to any nation wishing to raise its standard of living and provide a greater well being for
all. Gross domestic product (GDP) is the monetary value of all final goods and services produced
over a year. It is the total value of production within the economy. The total value of production is
the total value of the final goods or services less the cost of ... Show more content on
Helpwriting.net ...
Real GDP is measured by the following formula; [(current year quantity) x (based year price)]. A
more reliable measure of economic growth is real GDP per capita; this measurement takes into
account both the total production of the nation and the total population. Real GDP per capita
measures the real income per head of the population.
This can be measured by the following formula; Per capita nominal GDP = Nominal GDP /
Population, Per capita real GDP = Real GDP / Population. Seven factors determine economic
growth. Natural resources such as land, mineral deposits, waterways; climatic conditions provide an
essential foundation to economic growth. Combined with the other resources of capital, labor and
enterprises, natural resources can be developed and organized to increase the productive capacity if
the nation. Consequently the quality and size of the labor force is a major determinant of economic
growth. Education and vocational training are essential the growth potential of a nation. The
promotion of education and job training schemes increase the knowledge, skills and flexibility of the
workforce that contributes to potentially higher levels of productivity and efficiency. Whether from
natural increase or immigration population growth can cause a higher level of economic growth. An
increasing population requires increased public spending on housing, education and other social
needs while businesses expectations of

Economics
ECONOMICS
TITLE : NATIONAL INCOME
TEAM MEMBERS : SARAH CHIN, ARDEN, NURUL NADYRAH & FIR DAUS
LECTURER : MR.MANO
TABLE OF CONTENT
1. INTRODUCTION TO NATIONAL INCOME 3, 4
2. BACKGROUND OF NATIONAL INCOME 5, 6
3. THE MEASUREMENT OF NATIONAL INCOME 7, 8
4. THE PROBLEMS IN MEASURING NATIONAL INCOME 9,
5. PROBLEMS OF COMPARISON OF NATIONAL INCOME BETWEEN 10
COUNTRIES
6. CONCLUSION 11
7. REFERENCES 12
INTRODUCTION
National Income or national product or national expenditure is the total value of all goods or
services produced or created by a nation ... Show more content on Helpwriting.net ...
Therefore GNP, rather than NNP, is used to make comparisons over time and between countries.
Net National Product
Net national product (NNP) is obtained when the value of depreciation is subtracted from the GNP.
Depreciation occurs when capital equipment use in the production process becomes obsolete after a
certain period of usage.
NNP = GNP – depreciation
NNP can also be measured at market prices or at factor prices. The formula to calculate NNP at
market price is:

NNP (market price) = GNP (market price) – depreciation
&
NNP (market price) = NNP (factor cost) + indirect taxes – subsidies
The formula to calculate NNP at factor cost is:
NNP (factor cost) = GNP (factor cost) – depreciation
&
NNP (factor cost) = NNP (market price) + subsidies – indirect taxes
BACKGROUND OF NATIONAL INCOME
National income is gross domestic income for the country. The gross domestic product (GDP) or
gross domestic income (GDI) is one of the measures of national income and output. GDP can be
defined in three ways, which should give identical results. First, it is equal to the total expenditures
for final goods and services produced within the country in a specified period of time (usually a
365–day year). Second, it is equal to the sum of the value added at every stage of production by all
the industries, plus taxes and minus subsidies on products. Third, it is equal to the sum of the
income generated by

Demand, Supply, Price Ceilings And Price Floors
Demand, Supply, Price Ceilings and Price Floors (1) Using graphical illustrations explain consumer
surplus Consumer surplus can be defined as the difference between the maximum price that a
consumer is willing to pay for a good and what is actually paid for the good. This is measured by the
vertical distance between the demand curve and the price line (2) Describe the following: a. Inferior
Good An Inferior Good can be easily described as good decreases in demand as consumer income
rises. (e.g. No–Name cereals & cheap frozen dinners) b. Giffen Good A Giffen good is a special type
of Inferior good and can be described as one where when prices raises so does the demand for the
good.(e.g. When the price of basic white bread increase and you cannot afford to buy whole–wheat
bread, you have to buy the white bread at the higher price. c. Veblen Good A Veblen Good is a good
which is similar to a Giffen Good and is also known as a "snob effect". A Veblen good can therefore
be defined as a good where when price rises so does demand. This is so because people tend to think
the higher the price the better the quality. (e.g. Designer Clothes) (3) Distinguish between price
ceilings and price floors Price Ceiling and Price Floor are two types of price control mechanisms.
Price Ceiling is the maximum price of a good or service which is determined by the government
(e.g. Old Age Pension). Price Floor is the opposite which means it is simply the minimum

The Determinants of Factors of Price
INTRODUCTION The importance of price in the modern economic system not be overemphasized.
However, to set the right price for any commodity or service, some parameters or determinants
come to play. Among the determinants of factoring price are:– Tender Sales by Auction Haggling
etc, and these are discussed below. 1. Interaction of the forces of Demand and Supply:– In a
perfectly competitive market or what is sometimes referred to as a free market economy, prices are
determined by the interaction of the forces of demand and supply. The determination of prices by the
interaction of the invisible forces of demand and supply is known as the 'price mechanism' or 'price
system'. From the laws of ... Show more content on Helpwriting.net ...
The seller could advertise the sale of his commodity and request for tenders. Each prospective buyer
makes an offer for the commodity in writing. Unaware of the prices offered by other buyers. The
commodity is usually sold to the buyer who offers the highest price. In a tender for supply. The
commodity is usually sold to the buyer who offers the highest price. In a tender for supply, there is
one buyer and a umber of sellers. The buyer would ask the sellers of a commodity to make tenders
for supply. They apply in writing. Quoting prices at which they will supply the commodity. The
buyer normally accepts the tender which is lowest. 5. Cost of Production:– Production cost is made
up of prime cost and factory overheads. The prime cost comprises of costs of direct materials, labour
and direct expenses. If the producer has to pay more for costs of production, such producer will
charge higher price for his final production in order to cover his cost of production. All things being
equal, a higher cost of production tends to reduce supply, while a lower cost of production tends to
increase supply and this will have a great impacts on the price. 6. Government Fiscal Policy:–
Government fiscal policy has to do with taxation, if government policy is to increase revenue
through taxation, taxes will be increased. Different types of taxes such as custom duties, Import
duties, exercise duties,

The Pros And Cons Of The Red Meat Industry
Economics is a discipline conventionally associated with trade and commerce although economics is
a study that may be met with various definitions. It may be viewed as a ''the study of how people
choose to allocate their scare resources'' (Wessels, 2006).Alternatively it may be viewed as a study
that does not directly relate to the study of the economy but rather a study of individuals end up
choosing to efficient allocate scarce resources with or without money (Green, 02 Apr 2003 , p. 9)
.Part of economics is the study of how products are managed in terms of how prices are determined
to efficiently allow that parties are satisfied, i.e. the producers generating profit and consumers
getting what they paid for. Therefore, the following essay ... Show more content on Helpwriting.net
...
R. (1996). The Political Economy of South Africa: From Minerals–energy Complex to
Industrialisation. United Kingdom: C. Hurst & Co. Publishers. Department of Agriculture, F. a.
(2012). A Profile of the South African Beef market Value Chain. Arcadia:
http://www.nda.agric.za/docs/AMCP/Beef2012–13.pdf. Green, C. (02 Apr 2003 ). Handbook of
Water Economics: Principles and Practice. England : John Wiley & Sons, 2003. Joeph J. Cordes, R.
D. (2005). The Encyclopedia of Taxation and Tax Policy . Washington DC : The Urban Institute .
Lewis Kahn, d. C. (2014). Beef Producton and Trade. Australia : CSTRO Publishing . Nyhodob, T.
M. (2011). Farm and Retail Prices in the South African Poultry Industry:Do the Twain Meet? (Vols.
Volume 14, Issue 3). International Food and Agribusiness Management Association (IFAMA.
Oliver, G. C. (2004). An Analysis of the South African Beef Suplly Chain: From Farm to Fork .
Rand Afrikaans University . Phillip Mohr, L. F. (2008). economics For South African Students (4th
ed.). Hatfield, Pretoria: Van Schalk Publishers. Spies, D. C. (2011). Analysis and Qualification of the
South African Red Meat Value Chain. Bloemfontein, South Africa : University of Free State .
Wessels, W. J. (2006). Economics . New York : barrons educational Series

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