The Problem of Monopolies

Monopolies develop according to the definite monopoly market structure which is discussed by economists as opposite to the competitive market because only one seller controls the industry.Advertising We will write a custom essay sample on The Problem of Monopolies specifically for you for only $16.05 $11/page Learn More A company can be described as a pure monopoly when it is a single seller of certain products or services within the market, when it is a price maker, the barriers to entry are high, and there are no close substitutes for products. The development of a monopoly within the industry creates conditions which can characterize the imperfect competition based on the absence of the other sellers. Moreover, the lack of the substitutes is observed, and the company becomes a monopoly within the market (McConnell, Brue, Flynn, 2012). Microsoft is the leading producer of operating systems for personal computers and different types of software in the USA. This leading position is often discussed as an attempt to receive the status of a monopoly within the market in order to gain the high economic profits typical for monopolies oriented to innovations. The recent situation in the market of the computer software is rather controversial. It can be explained basing on the idea that Microsoft tried to gain the market power several years ago. Microsoft took the leading position within the industry in the 1990s when the most successful variants of the Windows operating system for personal computers were worked out. Moreover, the company presented the effective applications software, and the majority of the personal computers’ users began to utilize the Windows operating system. Microsoft Office and Outlook also became popular with the users due to the fact the possible alternatives could not be discussed as the appropriate substitutes for the products and services provided by Microsoft. For instance, the operating system Microso ft Windows 95 was effectively utilized by over than 80% users in the USA because their computers were Intel based (Bittlingmayer Hazlett, 2000). Thus, the situation was discussed by the government as critical because of Microsoft’s possibility to develop into the monopoly with maintaining the control over the market. Microsoft had to change strategies of presenting the products and attracting the buyers after the investigations conducted in 1994 and 1997 in order to address the government’s requirements. The advantages of Microsoft are in the fact the company regularly presents the technologically innovative products which have no substitutes within the market because of their high quality and originality. From this point, Microsoft’s strategy is based on the active usage of the technological development’s results.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Moreover, the company is regulated with references to the effective strategic marketing techniques in order to attract more customers (Bittlingmayer Hazlett, 2000). According to these points, Microsoft supports its leading position and contributes to developing the controversial question of monopolization of the market. Thus, the leading position of Microsoft depends on the high standards and quality of the products. The market occupied by the company is so expanded that there are significant barriers to entry which are the company’s ownership, peculiarities of pricing, and legal aspects. As a result, customers have no access to any relevant alternative products (McConnell, Brue, Flynn, 2012). Today, the activity of Microsoft in developing the operating systems should be discussed with references to such competitors as the producers of iOS for Apple and Linux Operating System. Limiting the possibilities for the competitors’ entries into the market, monopolies contro l the industry and develop monopoly pricing, maximizing the profits. Moreover, these processes are associated with the factor of a downward sloping demand curve which is typical for monopolies. From this point, monopolies are not discussed by economists as the effective way for a company to develop within the industry (Kahn, 1999; Krugman Wells, 2009). Nevertheless, not all the monopolies are bad. For instance, a natural monopoly does not influence the progress of the market negatively because it depends on the system of the fixed costs. Moreover, not all the monopolies are bad because of the definite support provided by the government. That is why, government monopolies can be discussed as good monopolies or legal monopolies. However, the government can regulate and control not many monopolies. The U.S. Postal Service is the legal monopoly developed in the country because the activity of the company is controlled by the government, and the specific functions can be realized only b y the U.S. Postal Service (Krugman Wells, 2009). It is possible to conclude that monopolies challenge the principle of the perfect competition and can be discussed as the negative factor for the industry and market’s development. Nevertheless, such types of monopolies as natural monopolies based on the large economies of scale and constant marginal costs which can be less than average ones and legal monopolies which are characterized by the government’s control should not be discussed as absolutely negative structures because they develop according to the specific principles. Economists agree that the main disadvantages of monopolies are associated with the characteristics of pure monopolies when only one company is a seller within the market with the possibilities to control it and provide the barriers to entry. Furthermore, the monopoly market structure provokes the growth of prices which are often higher than the prices within the competitive markets.Advertising We will write a custom essay sample on The Problem of Monopolies specifically for you for only $16.05 $11/page Learn More References Bittlingmayer, G., Hazlett, T. W. (2000). DOS Kapital: Has antitrust action against Microsoft created value in the computer industry? Journal of Financial Economics, 55, 329-359. Kahn, A. E. (1999). The economics of regulation: Principles and institutions. USA: The MIT Press. Krugman, P., Wells, R. (2009). Economics. USA: Worth Publishers. McConnell, C. R., Brue, S. L., Flynn, S. M. (2012). Economics. USA: McGraw-Hill. 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The Power of the Declaration essays

The Power of the Declaration essays Power and The Declaration of Independence There are many abstractions in the Declaration of Independence. These abstractions such as: rights, freedom, liberty and happiness have become the foundations of American society and have helped to shape the American Identity. Power, another abstraction that reoccurs in all the major parts of the Declaration of Independence plays an equally important role in shaping American Identity. One forgets the abstraction of power, because it appears in relation to other institutions: the legislature, the King, the earth, and the military. The abstraction of power sets the tone of the Declaration, and shapes the colonists conception of government and society. Power in the Declaration of Independence flows from distinct bodies within society such as the King, the legislature, the military, and the colonists. The English Dictionary defines power as, the ability to do or effect something or anything, or to act upon a person or thing. Throughout the ages according to the dictionary the word power has connoted similar meanings. In 1470 the word power meant to have strength and the ability to do something. Nearly three hundred years later in 1785 the word power carried the same meaning of control, strength, and force, power to produce an effect, supposes power not to produce it; otherwise it is not power but necessity. This definition explains how the power of government and social institutions rests in their ability to command people, rocks, colonies to do something they otherwise would not do. To make people pay taxes. To make the rocks form into a fence. To make the colonists honor the king. The colonialists adopt this interpretation of power. They see power as a cruel force that has wedded them to a king who has a history of repeated injuries and usurpations. The framers of t he Declaration of Independence also believe that po...

Renaissance Comparison Essay Example | Topics and Well Written Essays - 250 words

Renaissance Comparison - Essay Example Next to Galatea, hung the Polyphemus, which was very significant as the myth has it that Polyphemus was in love with the nymph Galatea, who did not return his affection. Both painters thus have painted scenes from Classical Literature, and according to E H Gombrich, both painters drew their source from Florentine Angelo Poliziano’s poetryi. Though the Birth of Venus is painted on canvas, â€Å"the figure of Venus appears †¦ almost like a classical statue. The hard modelling of the white shimmering flesh color is reminiscent of marbleii† According to E. H. Gombrich, Raphael had perfected â€Å"the perfect and harmonious composition of freely moving figures†iii According to Koenmanniv, Galatea is painted in the Neoplatonic style, and is â€Å"a secular version of his St. Catherine†. Both painters have different styles. The stance of Venus is not original and draws on the sculpture Venus Pudica, so while Botticelli looked to the past to pull out ideas, Raphael moved away from convention and moved away from the pursuit of Nature, sticking more with the idea of the imagined Beauty in his head. Fra Filippo Lippi was Botticelli’s teacher and in addition to Antonio del Pollaiuolo the painter, and Andrea Del Verrocchio the sculptor, influenced Botticelli. The Humanist Movement influenced Raphael and Galatea represents those

Tennessee and Progressivism Essay Example | Topics and Well Written Essays - 250 words

Tennessee and Progressivism - Essay Example In 1892, Knights of Labor, Farmers’ Alliance, and National Colored Farmers’ Alliance formed the Populists, people’s party. In the same year, African-American journalist Ida B. Wells-Barnett criticizes lynching and advocates for an end to racial discrimination in her passionate writing. In 1894, Booker T. Washington proposed that the state makes social equality and civil rights of blacks as important as economic advancement. Spanish-American war resulted into creation of National Consumers League. In 1909, liberal whites and African Americans formed a national association that advocated the advancement of colored people (NAACP). The association aimed at promoting racial justice, as well as civil rights. Similarly, Dr. Charles A. Eastman and others formed Society of American Indians organization to advocate Indians rights. The year 1912 saw establishment of US Children’s Bureau. The final landmark in the social justice came in 1920 when the Nineteenth Amendm ent guaranteed the right to vote to women (Sarat and Thomas 364). Notably, the struggle to ratify the nineteenth amendment began in

Education Essay Example for Free

Education Essay Maraming Pilipino ay nananatiling †walang pakialam, walang interes, at walang komitment. † May pagkamanhid na nagaganap kaugnay ng mga usapin sa moralidad kaya madalas inuunawa na lamang yaong mga bagay na di dapat palagpasin;ang kasamaan ay hindi nasusugpo dahil lubhang abala ang mga tao sa pagkayod ng ikabubuhay. Kung gusto nating tayo’y umunlad, hindi ito dapat magpatuloy. Express your agreement or disagreement to the statement above. Give concrete examples. In what ways have colonial education developed this apathy or lack of interest? In what ways can the present system of education help solve this problem. To a certain extent, I agree and disagree with the statement, I do not wish to appear not  to have a stand on this so allow me to explain: If I were to be realistic, I would have to admit that the statement is true. An example is an ordinary teacher working in a public school who handles three subjects and an advisory class with 30-50 students per class. She has a family of her own with 2-3 children and a husband who is a government employee. She rents a house with a fee of 5 thousand a month, exclusive of utilities. All children are in school. Monthly expenses on food, transportation, school fees etc. exceed her and her husband’s salaries combined. To augment their monthly earnings both husband and wife take on additional jobs, the teacher has private tutorials after school and the husband drives for a family on the weekends and holidays. No one can question her integrity as a teacher; she does her work well and with sincerity. But with the bulk of her responsibilities not only with her own family but with her students, do you think she has the time to debate on issues such as corruption in government? An issue that she was born in and with already. An issue that she has no immediate solution for. An issue that continues even after the post has â€Å"changed hands†. That no matter who sits in government, same problem on corruption occurs but on different levels, depth and facets. For this ordinary teacher, she would rather focus her time on the daily problems she encounters and can provide immediate solutions for – like her students failing grades or, frequent absences. Or misunderstandings with a colleagues, or school projects of her kids. Can we fault her for simply focusing on solutions she has control over? Does that make her insensitive, numb, does not care or uninterested with the issues around her? Will her joining street rallies, taking a day off her from her responsibilities and a day’s pay from her salary, to denounce the government that seemingly disregards her problems address the corruption issue and solve it within the day she can afford to spare? I do not believe so. She does what she can, at times that she can. This attitude is  not  even colonial. It’s an innate Filipino and human value that we all take on when necessary. And the teacher’s attitude of providing solutions at her level no matter how mundane helps the community. Small things like inculcating honest values, and upgrading human respect for others to students under her care would make a difference, so when they grow up and they take on the leadership of the country, she hopes they would be a different brand of leaders. She is but one teacher, but even a small pebble when thrown creates a ripple in any body of water.

The Family in Franz Kafkas The Metamorphosis :: Metamorphosis essays

The Family in Metamorphosis The Metamorphosis by Franz Kafka, is about a young man, Gregor Samsa, who is transformed overnight into a bug. He soon becomes a disgrace to his family. After his metamorphosis, his family goes through an even bigger metamorphosis than Gregor, himself. Therefore, the real metamorphosis occurs to the family rather than Gregor. One of the family members who goes through significant metamorphosis is Gregor's sister, Grete. She maybe the person that he cared the most about. After he turned into a bug, her love and care gave him a reason to live, but when she stopped caring it killed him. Grete turned from this loving, caring, and warm person into this dark, uncaring, and selfish person. After Gregor turns into a bug, Grete seems like the only one who cares about her brother, even in the body of a giant bug She keeps his room clean and brings him things to eat twice a day. She worries about what he might like to eat "But, he would of never been able to guess what his sister, in the goodness of her heart, actually did. To find out his likes and dislikes, she brought him an assortment of foods"(24). . Her kindness, even when she is afraid of his appearance, touches Gregor deeply. She gives him a reason to live. She is the only human that he has contact with. So, he doesn't feel as much alienated as he already is. This shows that after Gregor turned into a bug, she still cared about him. Her warmth gave him a reason to live. But, this would not last for long much longer. As the time passed, Grete practically stops caring about her brother. She starts to treat him differently. "No longer considering what she can do to give Gregor a special treat, his sister, before running to business every morning and afternoon, hurriedly shoved any old food into Gregor's room with her foot" (43). Grete is not thinking about Gregor like; this makes her uncaring. Shoving things with her foot is an example of her showing him that he is a bug because bugs are usually stomped on with feet. Grete gets a job to help pay for expenses, she no longer wants takes care Gregor makes her selfish.

Entrepreneur ship Essay

Regardless the state of the country, one can realize that coffee is one of the most favorite products among American people. It has remained in the top positions for some decades. However, drinking coffee is not only the consumption of a product; it has become a daily activity. It is normal to hear this question when someone wants to meet up with one person: â€Å"do you want to get a coffee tomorrow and we can talk about†¦? † Any excuse is good enough to get a cup of coffee. The beginning of the coffee industry dates back to the 1960’s, when a man named Alfreed Peet felt the inspiration to create the first gourmet coffee shop (Peet’s Coffee). That inspiration came, between other reasons, because he grew seeing his parents ‘coffee business (Peet’s Coffee). He was living in Holland and later in Indonesia. After that, he went to California where he thought he had the necessary knowledge to start his own business. By doing that, Peet started to produce a richer and more complex coffee that the available coffee at the market (Peet’s Coffee). Because of his marketing strategy, motivation through employees and resilience to fall, Alfreed Peet was one of the most innovative and creative entrepreneurs of coffee industry. Some people think that entrepreneurs are different from everyone else since they think these people were born with a special ability that nobody else has. However, these people are what they are because they learn from experience, including inconvenient experiences. Peet reached a great success because he did it. Despite this level of success, Peet can still became a better brand by introducing an aggressive advertising, worldwide expansion, and improving the pricing system. Peet had the features that best define an entrepreneur. First, he had the vision to open a shop in an unfamiliar market, the coffee market. Vision is a characteristic that most of the entrepreneurs have (Boone and Kurtz 608). Entrepreneurs do not fall depressed when people tell them that their business will not run successfully. Instead, they trust in their intuition and continue until they get what they want (Kelly and McGowen 92). Along with vision, Peet had passion about his coffee. He did not think in becoming rich or famous, but making the best coffee he could. He knew the importance of enjoying the process rather than thinking about the outcome. Moreover, he had enough motivation to start his business and offer the best product and service. This is the most important factor that one person must have to get anything in his or her life. Some people do not pay enough attention to how important the motivation is to succeed in any field. When one is motivated, it is much easier to reach any goal. Time does not seem to go by when one feels a motivational force inside him. Furthermore, the motivation makes one enjoy whatever he or she is doing. Then, along with this enjoyment, the results come without the sense of effort. â€Å"Motivation is important simply because it allows you as a leader to meet and even exceed your own organizational goals† (â€Å"importance†). However, motivation is not enough if one does not spend time working. For this reason, Peet knew that dedication was important if he wanted to be successful in the coffee industry. He did not believe in luck, but in causality. Another reason why he was a successful entrepreneur was that he wanted to see the growth of his family? s coffee business. He wanted to continue what was started decades ago. Finally, the word â€Å"commitment†. To Peet, it meant to be persistence. If he wanted his dream to become a reality, he had to overcome big obstacles. It meant never giving up and to being congruent by taking action instead of just talking. Peet? s coffee should be an admired company because of its behavior towards employees and customers. Peet? s makes an effort in having a good workplace where employees must be prepared to create the great coffee that customers like (Peet’s Coffee). It has been proven that the performance of the employees is greater when they are in a comfortable and attractive environment. Moreover, Peet knows the importance of making his employees feel well. An employer should not only think of the employees as part of the company, but should also take into consideration their opinions and complaints. â€Å"Democratic leadership ordinarily produces higher member satisfaction and morale. It also results in higher quality decisions when members have as much or more knowledge than the leader regarding a particular problem† (Sharpe). The results of a company depend on the performance of the employees. Espinosa states that an important step is â€Å"to be a positive model as a leader. You’re supposed to be a good example for your members to emulate, and a person worth respecting. † Good team work is an essential part of any job because the best results are achieved when everybody goes in the same direction. Moreover, motivation is crucial to push people to get their goals. â€Å"Democratic leaders involve members in decision making either by reaching consensus or by using parliamentary procedure. They pursue open, trusting, follower-oriented relationships† (Sharpe). The relationship between Peet and his customers has also been excellent during the time that Peet’s coffee has existed. (Peet’s Coffee). This relationship is passed from parents to their children and grandchildren and it seems to be continuing for a long time. Besides, Peet’s company has developed different economic and education programs in order to collaborate with the growth of the countries that provide beans and leaves for his coffee (Peet’s Coffee). To summarize, Alfreed puts the emphasis on being a big family who plays on the same team. Every member of the team has different tasks to do in order to reach the same goals for Peet’s coffee, which are to make a profit, offer an excellent service to the clients, and of course, to enjoy while doing it. Peet knows that the world has changed in the last decades; therefore, he has adapted to the marketing changes along these years. At the beginning of his expansion, Peet started in a local place where the coffee market was becoming more popular. At that time, the marketing concept changed and the business’ owners started to offer the goods and services that their clients demanded in a higher quality than their competitors (Boone and Kurtz 380-381). Thus, Peet wanted to get customer satisfaction more than anything else. However, times changed and Peet had to adapt if he wanted to continue being successful. Peet spread out his stores to different states of the country such as California, Illinois, Massachusetts, Oregon and Washington (Peet’s Coffee). Moreover, the last decades are characterized by some changes in marketing. Marketers are conscious of the importance of keeping loyal customers. Boone and Kurtz say that â€Å"acquiring a new customer can cost five times more than keeping an existing customer† (380-381). For this reason, Peet not only provided his products in his stores, but he started to look for ways that customers could find his products everywhere. Customers can now buy his products in different supermarkets around the country. For example, Safeway, Super-valu and Ralphs offer his products (Peet’s Coffee). In addition, Peet has seen how technology has grown in the last years and he has created his own website. This website gives the customers the opportunity to see, compare and buy Peet’s products. This website has also a service for customers and they can ask any question related to the products which will be answered by his representatives (Peet’s Coffee). Another important marketing feature of Peet’s business is that he is not only a retailer for his customers, but he is also a wholesaler for distributors of restaurants and food services (Peet’s Coffee). Even though Peet’s coffee is famous and well-known by coffee drinkers, there are some strategies that he should use in order to expand his business. First, a better advertising marketing strategy should be utilized if he wants to become more known around the country considering most people do not know about Peet’s coffee. However, when someone tastes this coffee they should ask themselves: How come I have never heard about this coffee? Peet should then invest money in publicizing his products. For instance, an advertisement on television and in a newspaper would make people arouse curiosity about this coffee. Second, it would be a good idea to emphasize the selling in the universities. Between students it is really popular to drink coffee, especially when exams are approaching. Peet should promote specific campaigns where executive go to different universities to publicize its products. The most important thing would be to franchise Peet’s stores in different universities. By doing this, students would start to know Peet’s coffee and it would be an excellent opportunity for Peet to grow his brand. Finally, in my opinion, the best strategy would be to expand his business to other countries of the world. Peet only has stores in the United States. In this situation, he can not expand his branch more than one point. He could expand his stores to other countries of the world because people like to try new brands. Even if one brand like Starbucks is successful around the world, people will still be attracted if a good product is offered to them. If Peet’s marketing strategy has worked in the United States, there is a high probability that it may work in other countries. Peet’s coffee would be successful around the world and it would keep in people minds for ever. Works Cited Boone, Louise E., and David L. Kurtz. Contemporary Business 12th Edition. Mason: Thomson, 2006. Print. Espinosa, Jerome. â€Å"How to effectively handle union negotiations. † Helium. com Helium 06 Oct. 2010. Web. 03 February. 2012. â€Å"Importance of Motivation. † Leadership-central. com Leadership-central. com, Web. 20 Jan. 2012. Kelly, Marce. , and McGowen, Jim. BSN3. Mason: South Western Cengage Learning, 2006. Print. Peet’s Coffee and Tea. Peet’s Coffee and Tea. PCT, Web. 14 Dec. 2011. Sharpe, Dave. â€Å"Choosing Leadership Styles. † Msuextension. org Montana State University Extension, Web. 20 Jan. 2012.