Principles of Microeconomics Research Paper Example | Topics and Well Written Essays - 1250 words

Principles of Microeconomics - Research Paper Example a single buyer in the entire business setting. Entry in such a market is restricted as a result of high cost or due to impediments which may be social, economic or even political. For instance the government can opt to create a monopoly over an industry. On the other side, monopolistic competition is generally a type of imperfect competition in that the competing producers sell products which are totally different from each other as goods but not necessarily perfect substitutes (Kamien 1982). Therefore, in a monopolistically competitive market, different firms can behave as if they are monopolies in the short-run by using market power to generate more profits. Later in the long-run, once other firms enter the same market, the benefits will be shared among them and the overall profit due to differential will considerably decrease with increase in competition. Having understood the basic principles about monopoly and monopolistically market structure, now it is very easy to anally the case in hand. As mentioned in the question, that in the year 2007 potato chip industry was operating as under monopolistically market. ... In most cases, it is argued that a multi-producer monopolist will always charge a lower price as compared tom firms operating separately producing the same complement products (Ralf 2000). As a result of lower pricing, demand will be higher since more customers are encouraged to buy at a lower price. The result is that, in the long run is that there will be a shortage of production because monopolistic generally produces less product than that society efficient level of output. In the long run, the price of commodities will be much higher due to less supply in the market. The strategy here is that, profit made earlier and being part of the surplus, it is transferred from consumers to the producers and this creates a social cost which arises from inefficiency low output that ends up to a dead weight loss. Immediately after transformation into a monopoly market the result would be realized within a short duration. For instance, due to monopoly the prices charged are much higher because there is no close substitute for the product. Those are at a disadvantage are the low income consumers who might be exploited by such a monopoly market where prices are a bit higher (Mckenzie 2008) Thought to producer high prices contribute to increase in the profit made by the firm. These benefits will be transferred to stakeholders whose main objective is after profit maximization. Though that may be the case, but sometime, a firm may not enjoy the domestic monopoly power, rather face an intense competition from other oversee producers. This tends to limit their market power and instead help in keeping prices lower for the consumers. Once manager has received such profits both in the short run and in the long run, they will distribute it

Pornography Essay Example | Topics and Well Written Essays - 1250 words

Pornography - Essay Example However, when an individual’s action causes or is believed to cause harm unto others, then his absolute freedom ends. His right to total independence ends where the right of others to the same kind of liberty begins. The very moment an individual crosses the line that separates him from others, he loses his absolute liberty and must now comply with the rules and regulations imposed by society so that that all persons with liberty and freedom of thought and action may co-exist peacefully. These rules that prohibit certain actions or compel an individual to conduct himself within the prescribed manner are created not to interfere and diminish his liberties but to ensure that an individual, in the exercise of his liberties, does not cause harm unto others. Aptly, the principle of self-protection shall only be applicable to matters which involve the society and the individual. Society may only forbid or coerce an individual if the reason is to prevent him from harming others and n othing else. II. Mill cites other reasons to remonstrate, or reason, with someone that do not justify com ­pelling him. What are these? Under the principle of self-protection, the one and only reason to compel and control an individual against his will is to prevent him from causing harm unto others. ... These rules, according to John Stuart Mill are reasons to remonstrate an individual but do not justify compulsion. At most, other may only argue, persuade or plead with him to heed their advice but in no way shall he be compelled and coerced to obey. By the same breath, compelling a person to give up his absolute liberty over his own self on the argument that it is the right thing for him to do is also unjustified and does not merit obedience. Neither does an individual’s own happiness nor his own well-being serve as valid grounds that justify compulsion. Society may not impose its opinion on very subjective matters such as happiness and comfort upon an individual and in the process infringe upon his right to absolute liberty insofar as his own life is concerned. The key phrase here, therefore, is harm to others. For as long as a person does not and is not going to harm others, then the most that others can do is remonstrate with him but can never justifiably compel him. III. Are there any positive actions that benefit others that Mill thinks the state can at least sometimes compel us to do? The general rule is that a person may only be restrained or compelled for the sole purpose of preventing him from committing harm unto others. However, this rule is not absolute. John Stuart Mill recognizes some exception to the principle of self-protection. These exceptions exist on the basis that a person’s failure or refusal to act when it is his duty to do so may also be the cause of harm unto others. Actually, we can also take it as just a restatement of the general rule. To prevent harm and to benefit others in society, a person may be compelled to do certain acts even if it is against his will.