Analysis Of The Oligopoly Form Of Market Economics Essay

Analysis Of The Oligopoly Form Of Market Economics Essay An oligopoly is a form of a market, in which any particular industry is dominated by few sellers which are also known as oligopolists. Originally this word is derived from Greek, which means few to sell. Now since there is small number of smaller involved in a particular industry, this makes them very much conscious of the other players of the same industry. Rather, to be more precise any decision of Firm one influence and are influenced by, the decision of other firms. Lot of business scrutiny techniques are used in strategic planning such as SWOT, PEST, STEER and EPISTEL analysis needs to take into report the likely responses of the other players. Description Oligopoly is a common form of market. Often the four-firm is used to describe vice nary of oligopoly, in which the most common ratios are CR4 and the CR8, which means the four and the eight largest firms in a particular industry and also measures the share of the four or the eight largest organizations in an industry as a percentage. Now let me use an example to make the above point clear. Here we will take the US cellular phone market. In 2008, the companies like ATT, Sprint, Verizon and T-Mobile together controlled over 90% of the market. Despite of the common market share and oligopolistic competition can give rise to a wide range of results. In a circumstances where a firm may develop a practice which could be a trade preventive, such as collusion, market sharing etc. to raise there product price while restrict the production which is similar to the monopoly, this could be short term as well as long term. Let us see and understand monopoly in equilibrium. The illustration of monopoly is considered to be the same in short run and long run. Now the revenue maximization occurs where MR=MC. And therefore equilibrium is at P and Q. Features of this diagram are that there are barriers to entry in Monopoly. Companies are price maker. Profits are maximized at output where MR=MC. This means they set a price greater than MC which is inefficient. In this diagram the companies makes supernormal profits because AR is greater than AC. In order to get this in effect, a official agreement takes place which is also known as cartel. The best example of cartel is OPEC which has a deep influence on worldwide price of oil. These kinds of participant are Price Setter and not the Price Taker. Through the process of collusion, oligologics can reduce the risks in markets for investment and product development and is an attempt to steady the unbalanced market. In most countries this is legally restricted. In other situations, competition can be fiercer between sellers in an oligopoly, with relatively low prices and high production. This could lead to proficient results. The results can be better when there are more companies in an industry. Characteristics The major characteristics of oligopoly are to maximize the profit by producing, where in the generated marginal revenue equals to the marginal costs. Position to set the price, which we have previously discussed above that oligopolies are price setters rather than price takers. Barriers for new firms to enter are higher. We can split these barriers in two groups, one of which is natural and the other is strategic entry barriers. These barriers are based on economical scale, patents, way in to expensive and difficult technology and above all the tactical actions by present firms designed to put off or tear down emerging firms. Since, there are few companies which results the actions of one firm can weight the actions of the other firms. Predominate factor is high barriers of the entry which prevents emerging companies from entering market, which in result can retain long run atypical profits. The most typical feature of an oligopoly is interdependence. Since oligopolies consists of fe w large firms and, each firm is so large that any of its action can affect the market condition. And due to this reason, the competing firms are well conscious of the market actions and are set ready to respond accordingly and correctly. In order to view a market action, a firm must take into the deliberation the possible reactions of all rival firms and there moves. A game of chess is a best example to simplify the above statements. Wherein both the opponents are very well conscious of each others action and are ready for the counter moves, this is duopoly. But this could explain the oligopoly since the players in the market are few in numbers. Modeling There is no model to explain the process of an oligopolistic market. In some markets there is a solitary firm which wheels a leading share of the market and a group of smaller firms. The dominant firm sets prices which are simply taken by the smaller firms in shaping their profit maximizing level of production. This type of market is known as a monopoly. Cournot-Nash model The Cournot-Nash model is the simplest oligopoly model. In this model there are two likewise positioned firms, the firms competes on the basis of the capacity rather than price and each firm makes and production decision assuming that the other firms actions is fixed. Now the bend of the demand in the market is based on assumptions to be linear and marginal cost are constant. To find the Cournot-Nash equation, one needs to determine how each firm reacts to a change in the output of the other firm which is followed by sequence of proceedings and reactions. This outline continues until a point is reached where neither firm desires to change what it is doing, given how it believes the other firm will react to any change. The balance is the intersection of the two firms reaction functions. The reaction purpose shows how one firm reacts to the mass choice of the other firm. For an example, assuming that the Firm A demand function P = (60 Q2) Q1 where Q2 is the quantity produced by the o ther firm and Q1 is the sum produced by firm A. Assume that the marginal cost is 12 Firm A wants to know its maximizing quantity and price. Firm A begins the process by following maximization rule of equating marginal revenue to marginal costs. Firm As total revenue purpose is PQ = Q1(60 Q2 Q1) = 60Q1- Q1Q2 Q12. The marginal purpose is MR = 60 Q2 2Q. MR = MC 60 Q2 2Q = 12 2Q = 48 Q2 Q1 = 24 0.5Q2 (1.1) Q2 = 24 0.5Q1 (1.2) Equation 1.1 is the reaction function for firm A. Equation 1.2 is the reaction function for firm B. The balance quantities can also be determined graphically, in which the balance explanation would be at the intersection of the two reaction functions. In mechanized economics, barriers to entry have resulted in oligopolies forming in many sectors, with new levels of struggle fueled by rising globalization. These are typically determined by development of a product and advertising. For example, there is only undersized figure of producers of civil passenger aircraft. Oligopolies have also arisen in a lot regulated markets such as wireless communications, in several areas only two or three providers are licensed to operate. In United Kingdom, there are five banks that control the UK banking sector, and were also accused of being an oligopoly by the newcomer Virgin bank. Going to the grocery market, we find four companies who shares 74.4% to 75.01% of the grocery market which are Tesco, Sainsburys, Asda and Morrisons. The detergent market is dominated by only two players and they are Unilever and Procter Gamble. Demand Curve In oligopoly, any company operates under flawed competition. With the vicious price competitiveness created by demand bend, firms use non-price competition in order to boost revenue and market share. Kinked insist curves are similar to usual insist curves. They are different by a hypothesized bowed bend with a discontinuity at the bend-Kink. Hence, the first imitative at that point is not clear and leads to a hop discontinuity in the marginal revenue curve. The inspiration following this kink is the thought that if firms will not elevate their prices because even a small price raise will drop many customer in oligopolistic or monopolistically competitive market. The reason behind this is that, the competitors will generally pay no attention to the increase in prices and will focus on gaining a larger market share. However, even a large price reduction will gain only a few customers because such an action will begin a price war with other players in the market. And for this reason, the curve is therefore more price-elastic for price add to and less so for price decreases. Firms will often enter the industry in the long run.

Surface Tension :: essays research papers fc

Surface Tension   Ã‚  Ã‚  Ã‚  Ã‚  My problem was to find out how to test or measure surface tension. I think the reason of some of the force in surface tension is cohesion and gravity. Surface Tension is the condition existing at the free surface of a liquid, resembling the properties of an elastic skin under tension. The tension is the result of intermolecular forces exerting an unbalanced inward pull on the individual surface molecules; this is reflected in the considerable curvature at those edges where the liquid is in contact with the wall of a vessel. Because of this property, certain insects can stand on the surface of water. A razor blade can also be supported by the surface tension of water. The razor blade is not floating: if pushed through the surface, it sinks through the water. More specifically, the tension is the force per unit length of any straight line on the liquid surface that the surface layers on the opposite sides of the line exert upon each other. The tendency of any liquid surface is to become as small as possible as a result of this tension, as in the case of mercury, which forms an almost round ball when a small quantity is placed on a horizontal surface. The near-perfect spherical shape of a soap bubble, which is the result of the distribution of tension on the thin film of soap, is another example of this force; surface tension alone can support a needle placed horizontally on a water surface.   Ã‚  Ã‚  Ã‚  Ã‚  Surface tension depends mainly upon the forces attraction between the particles within the given liquid and also upon the gas, solid, or liquid in contact with it. The molecules in a drop of water, for example, attract each other weakly. Water molecules well inside the drop may be thought of as being attracted equally in all directions by the surrounding molecules. However if surface molecules could be displaced slightly outward from the surface, they would be attracted back by the near by molecules. The energy responsible for the phenomenon of surface tension may be thought of as approximately equilivant to the work or energy required to remove the surface layer of molecules in a unit area. In comparison, organic liquids, such as benzene and alcohol's, have lower surface tensions, whereas mercury has a higher surface tension . An increase in temperature lowers the net force of attraction among molecules and hence decreases surface tension.   Ã‚  Ã‚  Ã‚  Ã‚  Surface tension is also viewed as the result of forces acting in the plane of the surface and tending to minimize its area. On this basis.

The Basic Mechanisms of Homeostasis

The Basic Mechanisms of Homeostasis Overview of homeostasis The term homeostasis was first coined by Walter Cannon in 1929 to literally mean ‘steady state’. It describes the dynamic equilibrium by which internal constancy is maintained within set limits by regulation and control. There are many examples of homeostatic control throughout the human body and in other living organisms, such as pH, pressure, and temperature. A concept important to homeostasis is the process of feedback circuits; involving a receptor, an effector, and a control centre.A receptor is responsible for detecting a change in the body, while the effector corrects this. The control centre organises these two together to elicit the response. The most common form of control in homeostasis is known as negative feedback, in which an excess or deficit in a homeostatic system triggers its own regulation. The diagram below illustrates this concept in reference to the control of temperature (Figure 1). Figure 1 is a simple representation of a rather complicated process.Here, the several types of negative feedback circuits involved in temperature control have been summarised into one. The hypothalamus is a combined receptor and control centre, both recognising extremes of temperature change, and triggering bodily effectors to correct the changes. Figure 1 shows the responses to a decrease in body temperature, which directs organs to increase metabolism, thus causing shivering. Another effect would be causing hair cells on the skin to force up their hairs, creating a trapped layer of air across the body surface.Such effects should then cause the body temperature to rise to the optimal 37Â °C again, causing feedback to switch the circuit ‘off’. If this does not occur, the circuit will continue to direct effectors to warm the body because the feedback will not be switched ‘off’. Recent research, however has added another dimension to the accepted definition of hom eostasis. Scientists studying circadian rhythms (24-hour bodily cycles) have pointed out that the internal environment does not have completely constant ‘normal’ set point. They have found, for example, that he set point for human body temperature varies over a 24 hour cycle, fluctuating between 36Â °C and 37Â °C. As a result of this research, current thinking suggests that while homeostasis controls the ‘minute-by-minute fluctuation in the environment’ , circadian rhythms control the body’s general programming over time. In this essay, we will concentrate on two examples of homeostasis, one that occurs in humans and one which occurs in plants. Firstly, we will discuss the control of blood glucose levels in mammals, and then will look at the role of plant stomata in regulating water loss.Example 1: Control of blood glucose levels The human body has a number of mechanisms in place to regulate the storage and release of molecules for energy. Sometime s, an individual will consume more calories than can be immediately used, so sugars will be stored in the form of glycogen (a polymer of glucose) in liver and muscle cells. Other periods of increased activity may however, require the sudden release of energy, whereby glycogen is initially oxidised from the stores in the liver. Clearly, this is another example of homeostasis and it is outlined in Figure 2.Two enzymatic hormones are utilised by the body to control the interchange of glucose as an energy molecule and glycogen as a storage molecule. The first, insulin, lowers blood glucose levels by promoting its conversion to glycogen. The second, glucagon, increases glucose levels by allowing glycogen to be phosphorylated. Both of these hormones are produced and released by specialised cells in the pancreas known as Islets of Langerhans. Insulin is released from ? -cells, and glucagon is released from ? -cells. Figure 2: Blood glucose control by insulin and glucagonIf the blood glucos e level is too high, more insulin and less glucagon is released. This causes cells to take in glucose from the blood, while the liver converts glucose to glycogen. During low levels of blood glucose however, glucagon release increases, activating the breakdown of glycogen to glucose in the liver, and glucose is released into the blood. This is a good example of negative feedback control, as the lowering of blood glucose, for example, inhibits further insulin secretion. Importantly, insulin is dependent upon calcium.This is because glucose activates calcium channels. When glucose levels are high, the subsequent release of calcium results in calcium binding to calmodulin. Together, the two molecules promote insulin vesicles to be released from the pancreas. This demonstrates the negative feedback system discussed in the overview. Example 3: Control of water loss by plants Plants need to balance their need to conserve water with their need to photosynthesise energy. Transpiration cause s water to be pulled up through the plant passively as water diffuses out through the leaves.These pores are opened and closed by the action of surrounding guard cells, located as illustrated in Figure 3. Figure 3: Drawing of stoma & guard cells These guard cells can take on two extremes of conformation; either flaccid, to close the stoma, or turgid, to open the stoma. When guard cells take in water via osmosis, they swell, become turgid, and are forced to bulge outwards into a kidney shape, opening the stoma. They adhere to this shape both because the two cells are attached to each other at either end, and because cellulose microfibrils constrain them.However, if the guard cells lose their water content, they shrink and become flaccid, closing the stoma so that water cannot leave. The opening and closing of the stomata have been shown to be affected by light concentrations. When illuminated, the concentration of solutes in the guard cell vacuoles increases because starch is convert ed to malic acid, and a proton pump in the plasma membrane is stimulated. The proton pump removes hydrogen ions (H+) from the guard cells, and in response, potassium ions (K+) flow into the cell.Chloride ions (Cl-) also flow into the cell via another pump in response to the H+ concentration difference. The accumulation of these ions and malate in the vacuole of the guards cells is enough to cause the water potential to drop within the guard cells. Water then flows in by osmosis, leading to the turgidity just described and opening the pore. As this opening process occurs in light, exactly the opposite happens at night. As light is lost, channels open to conduct Cl- and K+ out of the guard cells, water is lost, and the cells become flaccid and close.Another stimulus for the closing of stomata is an emergency response to the plant wilting from lack of water. In this case, CO2 concentration increases inside the leaf cells, and alongside the wilting, causes the plant to release the hormo ne abscisic acid (ABA). This diffuses into guard cells and activates the loss of Cl- and K+, effectively mimicking the night time action of the stomata. Concluding Remarks The idea of homeostasis has been well-developed since it was first identified in the mid-1900s.We have seen in this essay that feedback loops play an important part in homeostatic processes, and that the process is controlled by the action of detector and effector hormones and other molecules activated by control centres. Ongoing research also indicates that innate circadian rhythms affect the processes of homeostasis, causing the optimal set point for internal conditions to vary on a daily basis. Bibliography Alberts, B. , Bray, D. , Lewis, J. , Raff, M. , Roberts, K. , Watson, J. D. (1994). Molecular Biology of the Cell: Third Edition.Garland Publishing, U. S. A. Campbell, N. A. , Reece, J. B. & Mitchell, L. G. (1999). Biology: Fifth Edition. Addison Wesley Longman, Inc. U. S. A. Foster, R. & Kreitzman, L. (2004 ). Rhythms of Life: The biological clocks that control the daily lives of every living thing. Profile Books, London. Givens, P. , Reiss, M. , Rowland, M. (1996). Human Biology and Health Studies. Nelson, Surrey. Jurd, R. D. (1997). Instant Notes in Animal Biology. BIOS Scientific Publishers, Oxford. Rost, T. L. , Barbour, M. G. , Stocking, C. R. , Murphy, T.M (1998). Plant Biology. Wadsworth Publishing Company, USA. Van De Graaff, K. M. & Fox, S. I. (1999). Concepts of Human Anatomy & Physiology. McGraw Hill, USA. Webpage: Physiological ecology: functional responses to environment. Accessed 16/03/2005. http://www. ecology. botany. ufl. edu/. .. /homeostasis. html Webpage: Class Notes (2002). Accessed 17/03/2005. http://www. msu. edu/course/lbs/145/smith/s02/classnotes_032802. html Webpage: No title. Accessed 17/03/2005. http://www. puc. edu/Faculty/Gilbert_Muth/botgloss. htm

Singing Spoon Dry Ice Project

Singing Spoon Dry Ice Project The singing spoon or screaming spoon is the name of a dry ice project in which you cause a spoon to make a singing or screaming sound. Heres how to perform the singing spoon project and an explanation for how it works. You may also watch my video of the singing or screaming spoon. Singing Spoon Materials metal spoondry ice Make the Spoon Sing Dip a spoon in hot water.Remove the spoon from the water and press the warm spoon against the cold dry ice. The spoon will cause the dry ice to sublimate into carbon dioxide vapor. Youll hear the spoon emit a sharp vibrating sound sort of like it is singing or screaming. How the Singing Spoon Works When you press the warm spoon against the dry ice, the sublimation speeds up. The carbon dioxide gas that is released presses against the spoon at the same time you are applying pressure to push the spoon into the dry ice. The oscillations in pressure occur very rapidly, producing sound waves. Although youll usually see this demonstration done using a spoon, it works with any metal object. Metal works best because of its high thermal conductivity, but feel free to experiment with other materials.

Free Essays on Gas Prices

Gasoline is produced by a distillation process where crude oil is heated and fumes are captured and converted into many products such as kerosene, jet fuel, and gasoline to name a few. Therefore the price of crude oil, which is extracted from oil wells beneath the earths surface, is a major factor in gas prices. The five leading oil-producing countries and their approximate shares of the world supply of oil are: Soviet Union 21%, Saudi Arabia 17%, The United States 15%, Venezuela 4%, and Mexico 4%. These five countries made up 61 % of the worlds oil production back in 1980. Even though The United States is a major producer of oil, it does not make them self-sufficient. The United States uses more oil than they can produce and must look towards foreign countries. An organization called O.P.E.C. controls approximately four fifths of the worlds oil reserves in the non-communist world. The United States is forced to deal with O.P.E.C., not only in its own interests, but also in the inter est of its allies and in the interest of maintaining peace. The former Soviet Union may now have an interest in selling some of their oil that they have a tremendous amount of. O.P.E.C. which stands for Organization of Petroleum Exporting Countries, is made up of 13 countries: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, and Gabon. O.P.E.C. was founded in Baghdad, Iraq in September of 1960. It was organized in response to oil producing countries that did not consult with the Middle Eastern oil states before lowering their crude oil prices. The producers feared that other countries would establish monopolies. The aim of O.P.E.C. was to create a universal price between the countries, in order to ensure peace between oil producers throughout the world. O.P.E.C. also wanted to provide its members with technical and economic support in times of need, since not all the countries were complet... Free Essays on Gas Prices Free Essays on Gas Prices Gasoline is produced by a distillation process where crude oil is heated and fumes are captured and converted into many products such as kerosene, jet fuel, and gasoline to name a few. Therefore the price of crude oil, which is extracted from oil wells beneath the earths surface, is a major factor in gas prices. The five leading oil-producing countries and their approximate shares of the world supply of oil are: Soviet Union 21%, Saudi Arabia 17%, The United States 15%, Venezuela 4%, and Mexico 4%. These five countries made up 61 % of the worlds oil production back in 1980. Even though The United States is a major producer of oil, it does not make them self-sufficient. The United States uses more oil than they can produce and must look towards foreign countries. An organization called O.P.E.C. controls approximately four fifths of the worlds oil reserves in the non-communist world. The United States is forced to deal with O.P.E.C., not only in its own interests, but also in the inter est of its allies and in the interest of maintaining peace. The former Soviet Union may now have an interest in selling some of their oil that they have a tremendous amount of. O.P.E.C. which stands for Organization of Petroleum Exporting Countries, is made up of 13 countries: Iran, Iraq, Kuwait, Saudi Arabia, Venezuela, Qatar, Indonesia, Libya, United Arab Emirates, Algeria, Nigeria, Ecuador, and Gabon. O.P.E.C. was founded in Baghdad, Iraq in September of 1960. It was organized in response to oil producing countries that did not consult with the Middle Eastern oil states before lowering their crude oil prices. The producers feared that other countries would establish monopolies. The aim of O.P.E.C. was to create a universal price between the countries, in order to ensure peace between oil producers throughout the world. O.P.E.C. also wanted to provide its members with technical and economic support in times of need, since not all the countries were complet...

On current news Essay Example | Topics and Well Written Essays - 250 words

On current news - Essay Example The image that an audience holds of the individual will influence how they will react to the information, whether they will accept or reject it (Edlund and Pomona, 2012) Drawing a difference between kairos and chronos has been achieved through examining the effect that each has on an audience. Whereas kairos focuses on an opportune moment in time, and is more relevant to an audience, chronos focuses on a longer span of time, thus not being appropriate for general audiences (Edlund and Pomona, 2012) The four basic components of visual design are: type of text used in making an appeal, space or layout used, use of color and the use of images and graphics. With regards to type, large font type has been use to make the text easily readable, considering that the text is lengthy. Space or layout within the course has been useful in showing the importance of the discussion and also in creating a clear relationship among the parts. The use of plain color within the course has helped in creating an academic impression. Finally, the lack of images within the course is reasonable, considering that images are only useful in condensing information, whereas the content within the course is of fair

Performance Management Essay Example | Topics and Well Written Essays - 1000 words - 4

Performance Management - Essay Example Moreover, assessment of standards of such places can play a vital role in the identification of status of performance management system. The test identified 13 common rater errors. What are five of them? How would you use knowledge of those five to decide what is being done well and what is being done poorly in an organization’s behavioral assessment process? Some of the rate errors identified by the text are primacy, severity, leniency, attribution, contrast, and negativity errors. It is observed that all such rate errors facilitate in better carrying out of behavioral assessment process that are key to understand the status of performance in an organization. In specific, some of the rate errors help in carrying out effective decision-making processes. For instance, ratings for the entire period can be influenced by the performance in the beginning of such period through identification of primacy rate error. Secondly, actual performance of employees are not considered, and consistent rating of employees can be done by severity rate error that does the rating based on lower justification from the actual recording. On the other hand, leniency rate error is a diverse version of severity rate error that rates employees higher than allocated by their performance. In this regard, information gathered from common rate errors can play a vital r ole in assessing the performance in an organization. It is observed that managers and human resource department keeps on endeavoring to maintain and improve the quality performance in an organization, and a number of steps are taken to ensure the stability in the performance management system. In specific, on-job training and courses, on-job education, conferencing, assignments, and mentoring are some of the significant development activities that are organized for improving the effective performance in the organization. Statistics have indicated that every organization