Sociology- Role of Media Essay - 2016 Words

Role of The Media By Tess Bugbee Mass media is the methods of communication, including television, radio, magazines, films, internet and newspapers, that have become some of society’s most important agents of socialization. In this paper I will talk about media and its effects on society today, things such as stereotypes the media portrays, the way media illustrates women and what that does to body images of women. I will also be talking about medias effects on teenagers, and sexualization in the media. Media has always played a huge role in our society. For a long time media was one of the methods of controlling people and leisure. Nowadays media is one of the main part of our lives and our society, because†¦show more content†¦The media, which seems to endlessly show women as sexual objects, has the capability of limiting a woman’s potential and damaging their self worth. More often than not the media depicts the way people go about their daily life. People look at the media to determine ho w they should dress, act and in some cases even how they should perform sexually. There are the fashion magazines that focus on beauty, attracting and satisfying men, self-improvement, and (occasionally) work and politics. Examples are Vogue (emphasizing fashion and makeup), Cosmopolitan (emphasizing sexuality and relationships with men), and Self (emphasizing self-improvement and employment). Not only are most magazines directed at women, but the ones that are directed towards men are about work and politics, not about how to improve your looks or please your woman. The media along with other social institutions plays a large role in how women are viewed. A horrible example is being set for today’s youth, and men are taking the loss of self respect of women in the media to the extremes, thinking that they can degrade women in everyday life as well. With the constant representation of women being viewed as nothing more than sexual objects, women themselves are beginning to fe el as though they have little or no potential, as well as no selfShow MoreRelatedSociology of Advertising and The Stereotyping of Women in the Media: Gender Roles, Personal Dissatisfaction and Issues of Patriarchy- Who Is Really to Blame?2525 Words   |  9 PagesThe Stereotyping of Women in the Media: Gender Roles, Personal Dissatisfaction and Issues of Patriarchy- Who Is Really to Blame? We live in a consumer world. Everything we do and perhaps everything we are is based on consumption and commodity. Daily life has become a constant juggle of products and services - needs verses wants. People and objects become interchangeable. People become identified and classified with material goods. While advertising and the consequential high levels of consumptionRead MoreGramsciS Approach To Ideology Proposes That Oppressed1544 Words   |  7 Pagesanalyse the influence of the ruling class and society’s institutions. Marx emphasised that the structure of capitalist society would collapse without the reproduction of its social conditions (Wolff, 2007). Identifying that ideology plays an integral role in maintaining such conditions; Althusser (1971 [no pagination]) claimed ‘The State is a machine of repression, which enables the ruling class to ensure their domination over the working-class.’ This is achieved through Ideological State ApparatusRead Moreweb dubois1041 Words   |  5 Pages February 4, 2014 Sociology 1000 Chapter 1- In Text Questions 1.How do the perspectives of people from different cultures differ on social issues such as suicide? How does the psychological perspective view suicide? What is unique about the sociologist s perspective? On a social issue such as suicide, cultures differ because many people feel this is a personal problem whereas others feel that this can be a public issue. If a person commits suicide, it may have been as a result of his orRead MoreSoc/100 - Applying Sociological Perspectives1063 Words   |  5 PagesTherefore, while social networking sites provide a multitude of beneficial improvements to the world, there are just as many issues that arise, and all three sociological perspectives serve to complement one another in the comprehension of social media networks and the sway they bring to societies. As Viewed Through the Structural-Functional Theorists’ Lens English philosopher and biologist Herbert Spence (1820-1903) first introduced Structural-Functionalism Theory through his writings, which employRead MoreThe Study Of Body Image1572 Words   |  7 Pages(Thompson et al, 1999; Thompson and Stice, 2001). Therefore, failing to meet the societal expectations of being muscular male or thin female may lead to a separation between virtual and actual social identity. The sociology of gender is an important subfield of sociology. In sociology, there is a distinction between sex and gender (Wharton, 2005). Sex is the biological traits that societies use to assign people into the category of either male or female. In other words, it refers to the physicalRead MoreGender Inequality For Women s Sports982 Words   |  4 Pages Running head: INEQUALITIES FOR WOMEN IN SPORTS Inequalities for Women in Sports T’Keyah Thomas Georgia Southern University Sociology 1101 October 18, 2015 Sociology 1101: Reasearch Proposal Inequalities for Women in Sports Introduction: As an adolescent, I was very interested in sports. In fact, sports were all around me. I was usually the tallest of my friends, therefore I was faced with more opportunities concerning sports. The main sports I played were basketball and softballRead MoreThe Gender Marketing Of Toys : Shaping The Way Americans Shop And Play Essay1623 Words   |  7 Pagescreate gender divides based on toy characteristics and how it shapes gender expectations (Mansbach, 375). Carol Auster is a sociology professor at Franklin and Marshall College. Sociologists examines human behavior and society in a more in-depth way than the average human being to obtain a better understanding of social life and why people develop the way they do (What is Sociology?). Auster obtained her M.A. and Ph. D. from Princeton University. Auster received the 2011 Christian R. and Mary F. LindbackRead MoreGender Socialization : The Real World1442 Words   |  6 Pagesbehave. Gender socialization is when people are expected to act a certain way based on their â€Å"gender†. Through the following agents: family, schools, peers, and media, gender socialization is emphasized and made very real in the world today. The definition of gender in the sociology textbook, The Real World: An Introduction to Sociology, is â€Å"the physical, behavioral, and personality traits that a group considers normal for its male and female members† (Ferris and Stein 243). The textbook definesRead MoreAgents Of Socialisation : The Mass Media1120 Words   |  5 PagesAgents of Socialisation : The Mass Media In the present day, the media is incorporated into our daily lives. Every day, through newspapers, radio, television, email, the internet and social media, are we sucked into an electronic world, which changes many of our beliefs and values about how we live our lives. It plays such a large role in almost every person’s life compared to 50 years ago, when the internet did not exist. It effects things such as our political views, tastes in music, views of menRead MoreHunger Games Sociology Essay1098 Words   |  5 PagesPanem. However, The Hunger Games is not just a young adult genre obsession, but also a complex study of the social sciences. The symbolism and plot of The Hunger Games are prime examples of Sociology because they display different societal rules and norms, the struggle for power, and the importance of the media. Although The Hunger Games is set in the future, societal norms, rules and views still exist just as they do in today’s society. Macrosociology studies the wide perspective of such social

The Miami Dade Police Department - 1387 Words

Abstract This paper explores all the components that make up The Miami-Dade Police department. From the geographic location of Miami-Dade County to it s citizens and police force. Using both sources straight from the Miami-Dade Police Department s website and other non-departmental sources to explore the inner workings of the department from recruitment, to citizen-police interactions, all the way up to Internal Affairs and how complaints and misconduct are handled. Looking at the demographics of the county of Miami-Dade, recommendations will be made on what steps the agency needs to take to become an even better department for the citizens it serves. The Miami-Dade Police Department Policing has come a long way since the London Metropolitan Police. In the mid-1800 s policing was more about crime prevention and use of force was a rare last ditch effort to gain compliance from a suspect ( White p. 69-69 ) New technologies have changed policing from an informal neighborhood watch to a sophisticated organization. Jurisdiction Location and demographics. Home to about 2.5 million people, Miami-Dade County in Florida houses thirty-four municipalities and covers over two thousand square acres of land. One-third of the county is located in the Everglades National Park and it s other borders consist of The Atlantic Ocean, The Biscayne Bay, The Florida Keys and Broward County (At-A-Glance). Miami-Dade county holds about thirteen percent of Florida sShow MoreRelatedPolice Academy Training Program Must Go Beyond Arrest Procedures1370 Words   |  6 PagesPolice academy training programs must go beyond arrest procedures and usual tactics it must include COP skills (Anyatt, 1993). Academy training is infamously imperfect in instruction that emphasizes the discretionary application of a range of skills that relate to real world circumstances (Kelling, Wasserman, Williams, 1988). Much police academy training is undermined in the field. For this reason, a change to community policing philosophy and its subsequent o rganizational changes must be trainedRead MoreForensic Science And Criminal And Civil Law Enforcement843 Words   |  4 Pagesdocument examination that made it possible for documents to be accepted as a form of scientific evidence by the court system (Saferstein, 2009). Edmond Locard (1877 - 1966): convinced the police department in Lyon, France to provide him with two attic rooms and two assistants to start the first ever police crime laboratory. One of his theories eventually came to be known as Locard’s Exchange Principle, known today as Trace Evidence. (Saferstein, 2009). 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Against the backdrop of the tumultuous era of the 1960s when the nation’s collective unrest regarding various then current events ranging from the social upheaval of the civil rights movement to the broadly unpopular and deepening conflict in Vietnam spilled onto the streets of American cities seemingly everywhere, local police forces, lacking in experience with crowd control, often found themselvesRead MoreLaw Enforcement585 Words   |  3 Pagessworn to serve and protect our communities to make the right decisions when it comes to their duties. There are so many real-life examples that show police misconduct, because bad things always make front page but all the good that they do is overlooked. This case was very strange to me, officer from Oakland County, Michigan knows what the departments are capable of doing and still downloads and shares child pornography on his home computer (WDIV Detroit, 2013) . 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Law enforcement and social services to work together to provide a complete range of services for both at-risk youth and youth involved with the Juvenile Justice System. JSDS increase public safety by reducing juvenile delinquency

Global Environment of Fredrick Taylor †MyAssignmenthelp.com

Question: Discuss about the Global Environment of Fredrick Taylor. Answer: Ford and Taylorism Taylorism in the modern business Giordano (2016) stated that the theory of Fredrick Taylor is the most widely used and accepted technique that deals with the concept of time management. In the current business world, the competition that exists among organisations and among employees is intense. Every organisation and employee aim to provide the best services for its improvement. Hard work provides opportunities to gain good incentives for the employees. In developed countries such as Australia, USA and UK, the theories of Taylor and Ford are widely accepted in every existing organisation. The organisations that exist in the modern world, aim to expand its reach in the international market in the hopes of gaining more resources and increasing opportunities for success. Therefore, the adoption of Taylorism is required for maintaining international growth in organisations. The application can help in increasing the efficiency of the employees working in the organisations. Explaining the design of scripts used in call centres Every call centre is considered as a fragmented type of speaking ability of employees. The employees working at the call centres are provided with a script that is required to be learned by the employees and spoken to the clients. However, in most call centres the rules vary depending on the type of assistance that it is providing to the people (Stoller 2015). For example, in organisations that provide after sales assistance to customers, the people in the call centres adopt a different method of speaking with the clients. Hence, in this regard, it can be said that these workers need to adopt the model proposed by Taylor as it can help in increasing the rate of calls. This can also help in increasing the level of productivity in improving the profitability of the call centres. Comparison of world and new world ideologies Business conducted in the modern world and that was conducted about a 100 years ago are different from one another in many aspects. The video supports this thought and provides a detailed description of the ways business was carried on in the organisations in the early times (YouTube.com 2017). The ways by which business is being conducted in the modern world have changed significantly and have provided evidence about the need for the application of rules made by Taylor and Ford. One of the themes of business that has remained constant in the modern world is the ability by which organisations aim at making profits. Apart from this, the most significant change that has been made in business in the modern world is the rate of competition. An increased competition rate has made business incapable of sticking to a particular strategy for growth and profit. Thomas Friedman on Globalisation; 3 Eras of Globalisation; World is flat Drawbacks or risks of residing in a flat world According to Cavusgil et al. (2014), the third version of globalisation is solely focused on the competition that exists between industries and individuals. The competition within the organisations and within the industries has been a motivating factor for the employees to work well in the modern business. Despite this, there has been a certain risk that has been analysed by scholars on the application of globalisation in the business world. According to Friedman (2016), employees have the tendency to portray their status in a society based on the positions that they hold in an organisation. The negative impact that can be generated from such an attitude can lead employees and the society to remain in danger. At the same time, creative employees tend to take risks that can help in the innovation aspects of a company. This attributes to take more risks and consequently, such an approach is criticised by the organisations in fear of change. Another cause of concern in the age of globalisation is the fact that cultural or regional biases may exist in organisations. Although such cultural attack on people is against the company rules, some organisations may tackle such rule in a clever manner while recruiting employees. View on Friedmans iron rule theory The iron rule stated by Friedman aims at providing individuals and companies with an ability to take advantage of the opportunities that have been provided in the business world. It has been seen that at the time of crisis, people may face failure in an organisation. According to Friedman (2016), opportunities are not a recurring thing and it needs to be grabbed by the individuals once it produces itself. In the video clip, Friedman focused on the competition that exists in the world. The competition exists among organisations, industries and the employees (YouTube.com 2017). One of the reasons for the development of modern business is the direct result of the competitions that exist in a market. In this case, Friedman stated an example of Peru in which he had seen innovation taking the country to reach great heights in the world. Analysing the level of uniformity of globalisation in the world The video of Friedman suggests that globalisation in the world has been distributed in a less uninformed manner. This is because most of the underdeveloped countries in the world have failed to cash-in on the effects of globalisation in the modern world. Some countries have failed in it due to the existence of poverty (YouTube.com 2017). The spread of technology in the world has been un-uniform and this is considered as the main reason for the lack of spread of globalisation in the world. According to Waring (2016), the underdeveloped countries do not have the basic medicines for curing diseases in the case of sickness. The fact that globalisation aims to bring people of the world, closer together is considered as an irony after such evidence that undermines it unevenness in the global market. Globalisation helps in bringing about changes in the world and unites people of different culture. However, Friedmans Globalisation 3.0 has failed to create uniformity in the world. Thus, this is the drawback of globalisation in the modern world. References Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., and Rose, E. L. 2014.International business. Pearson Australia. Friedman, M. 2016.A theory of the consumption function. Pickle Partners Publishing. Giordano, L., 2016.Beyond Taylorism: computerization and the new industrial relations. Springer. Stoller, A. 2015. Taylorism and the logic of learning outcomes.Journal of Curriculum Studies,47(3), pp. 317-333. Waring, S.P., 2016.Taylorism transformed:Scientific management theory since 1945. UNC Press Books. YouTube.com 2017.Ford and Taylor Scientific Management (Edited). [online] Available at: https://www.youtube.com/watch?v=8PdmNbqtDdI [Accessed 22 Aug. 2017]. YouTube.com 2017.Thomas Friedman's Three Eras of Globalization. [online] Available at: https://www.youtube.com/watch?v=lp4znWHvsjU [Accessed 22 Aug. 2017]. YouTube.com 2017.What Thomas Friedman means when he says "The World is Flat". [online] Available at: https://www.youtube.com/watch?v=oM2BguxRSyY [Accessed 22 Aug. 2017].

The Economic Environment of Business Essay Example

The Economic Environment of Business Essay It concerns of Business a) Allocation of society scarce resources among alternative uses the distribution of collects output among Individuals groups at a point In time. B) The way In which allocation dilutions change over time. C) The efficiencies Inefficiencies of economic systems. Since the real world is so complex, when economists face a problem, where they have to make a decision, they first start by making simplifying assumptions where they build a model much simpler than the real world. If the model was done properly, then it should predict how the real world will behave. A basic assumption in economics, is that economic players behave rationally. It means that once theyve selected their objectives, they will try to achieve them in a rational way. Therefore individuals believe in is utility minimization, which refers to any objective that leads to satisfaction of the economic player. Thus paying to charity may lead to utility minimization. What Is managerial economics? Managerial Economics Is a marriage of economics decision sciences In order to solve complex business problems. This applies for both private firms public institutions. According to Keats Young It Is the use of economic analysis to make equines decisions involving the best use of an organizations scarce resources. It brings together economic concepts tools, financial analysis, strategic planning, the techniques of the decision sciences. We will write a custom essay sample on The Economic Environment of Business specifically for you for only $16.38 $13.9/page Order now We will write a custom essay sample on The Economic Environment of Business specifically for you FOR ONLY $16.38 $13.9/page Hire Writer We will write a custom essay sample on The Economic Environment of Business specifically for you FOR ONLY $16.38 $13.9/page Hire Writer Examples of questions that managerial economists are concerned with: a) In the private sector: What will be produced? How to produce it? What is the level of production? How much to charge for it? B) In the public sector: What projects should we implement (e. G. Infrastructure)? Should we impose a tax? How to prioritize our budgetary spending? Goals of the firm an economists perspective: The firm In economic theory is expected to want to maximize profits (of course subject to constraints). This Is known as the profit minimization hypothesis. How Economists Define? Resources (factors of production): a) Land (land, forests, minerals, etc) b) Labor (physical + mental) c) Capital (tools, machinery, factories) Production: the act of making commodities (goods and services) Goods: a) Tangible e. G. Cars, chairs b) Services: Intangible e. G. Education, health care Efficiency of production: maximizing output using a given amount of resources Or maligning resources used to achieve a given amount of output. Efficiency of distribution: the economys output is said to be efficiently distributed if no one could Effectiveness: the extent to which an intervention does what it is intended to do Firm: A firm is an organization which takes resources transforms them into products (goods services) that are demanded by consumers. Industry: A group of firms that sells a well-defined product or closely related set of products. Market: An area over which buyers sellers negotiate the exchange of a well-defined commodity. N. B. : Not necessarily physical, for example the NASDAQ stock exchange is an electronic arrest. Revenue Profit:Revenue refers to all the proceeds (money) that a firm gains from selling its product or service. It depends on the quantity of units it sells and the price of each unit. Revenue = no. Of units sold X price of unit The difference between the revenue a firm receives and the costs of production it incurs is the profit. Micro vs.. Macro Economics a) Macro economics: the study of the determination of economic aggregates averages, such as total output, total employment, the general price level rate of economic growth. ) Micro economics: deals with firms, markets or sectors of the economy rather than aggregates. It studies the allocation of resources and the distribution of income as they are affected by the workings of the price system by the policies of the authorities. Command vs.. Market Economies a) Command economy: an economy in which the planning decisions of central authorities (as distinct from households firms) exert the major influence over the allocation of resources the distribution of income. ) Market economy: refers too society in which people specialize in productive activities meet most of their material wants through exchanges voluntarily agreed upon by the contracting arties. Decisions made by firms households depends on market signals as prices profits. Demand Supply Definition of Demand: It is the willingness ability to pay for a good Definition of Quantity demanded is the entire relationship between the quantity of a commodity that buyers wish to purchase per period of time the price of that commodity, other things equal. The demand relationship can be presented verbally [aforementioned], graphically or mathematically Graphically: A basic hypothesis is that the lower the price of a commodity, the larger the quantity that will be demanded, other things being equal. Notice that quantity demanded is a desired quantity. It is how much households wish to purchase, not necessarily how much they actually succeed in purchasing. Notice also that quantity demanded is a flow, that is it has a time dimension. Determinants of Demand: a) The price of the good b) The price of substitute goods c) The price of complementary goods d) Households income wealth (when dealing with market demand we should consider income distribution) e) Tastes and preferences f) Future expectations g) Sociological demographic factors e. G. Number of buyers, number of children, lace of residence What happens to the demand curve if there is a change in any of the factors that determine demand? Changes in price 0 movements along the demand curve. Changes in other determinants 0 shift in the demand curve 1- Changes in Household Income: If households receive more income, they can be expected to purchase more of most goods even though prices remain unchanged. Normal Goods Inferior Goods. A commodity whose demand increases when income increases is called a normal good (majority of goods). A commodity whose demand decreases when income increases is called an inferior good. 2- Changes in Other Prices: Commodities that can be used in place of each other (I. E. Substitute each other) are called substitutes. Where as commodities that tend to be used Jointly with each other are called complements. 3- Change in tastes 4- Change in sociological factors Use the correct terminology: Change in demand = shift in the whole demand curve Change in quantity demand = movement along a demand curve Definition of Quantity Supplied: It is the entire relationship between the quantity of a commodity that firms are able and willing to offer for sale per period of time and the price of that commodity, other eke demand it is a flow, that is, it has time dimension. The supply relationship can be presented verbally [aforementioned], graphically or mathematically All other things equal, the quantity of any commodity that firms will produce offer for sale is positively related to the commodity own price, rising when price rises falling when price falls. Note: We will discuss in a later presentation why the firms supply curve looks the way it is, so we will take its shape as given for the time being. The shape of the market supply curve depends on the market structure (the number of suppliers n the market), again this will be studied in some detail later, so we will take the shape of the market supply curve (in the previous slide) as given. Mathematically via the supply schedule or demand function: Determinants of Supply a) The price of the commodity b) The prices of factors of production c) The goals of producing firms d) Future expectations e) Weather conditions f) The state of technology g) For the market supply curve: imports, number of sellers What happens to the supply curve if there is a change in any of the factors that determine supply? Changes in price 0 movements along the . Changes in determinants 0 shift in the supply curve. Apply curve Change in supply = shift in the whole supply curve Change in quantity supplied = movement along a supply curve The Determination of Price So far, demand and supply have been considered separately. How do they interact to determine price in a competitive market? Point E represents the equilibrium price quantity The Laws of Demand Supply Elasticity Assume that the supply of a certain commodity increases, we know from the previous lecture that price will fall and quantity con sumed will increase. But! Will these changes be large or small? The Effect of the Shape of the Demand Curve The Responsiveness of Demand to Price The degree to which quantity demanded responds to changes in the commodity own price is called the responsiveness of demand. Price Elasticity of Demand Price elasticity of demand is the responsiveness of demand to price change. It is defined as: The percentage (proportionate) change in quantity demanded divided by the percentage (proportionate) change in price that brought it about. It is usually symbolized by the Greek letter eat: 0 a) If quantity changes, but the percentage change in quantity is less than the regenerate change in price 0 elasticity 1 0 demand is ELASTIC. N.B.: Elasticity may vary along the same demand curve depending on the shape of the curve. ) Perfectly elastic (completely elastic) demand curve is the last case. Where elasticity is infinitely large, there exists some small price reduction that will raise demand from ere to infinity. Above the critical price, consumers will buy nothing. At the critical price, they will buy all that they can obtain. Completely Elastic Demand Curve 0 = Relation between Elasticity Revenue In case of elastic goods, an increase in price leads too larger reduction in quantity consumed, thus causing revenue to decline (since revenue is quantity multiplied by price). In case of inelastic goods, an increase in price still leads too reduction in quantity consumed, but the percentage change in quantity is less than the percentage change in price, thus causing revenue to increase. Price elasticity of emend will help us to answer important policy questions. Examples: 1 . What will happen to revenue as price changes? 2. What will happen to consumption of cigarettes if the tax increases? What determines elasticity? The main determinant of elasticity is the availability of substitutes whether the commodity is a necessity. A commodity with no close substitutes tends to have an inelastic demand. Also, what proportion of income is spent on the good, is it a durable product, can purchases be postponed, Also, time factor has a role in determining elasticity. Because it takes time to develop satisfactory substitutes, emend that is inelastic in the short run may prove elastic in the long run. A good example is the change in elasticity when oil prices increased in 1974-75. The concept of demand elasticity can be broadened to measure the response to change in any of the factors that influence demand, not only price. Elasticity of Supply Elasticity of supply measures the response of quantity supplied to changes in any of the factors that influence it. Price elasticity of supply is the percentage change in quantity supplied divided by the percentage change in price that brought it about. Market Structure The profitability of a firm depends on a number of factors. It is not only the number/ size of sellers in the market that matters but also the nature of the product, the nature and number of purchasers of the product, the ease of entering and leaving the market and a multitude of other factors. To reduce these characteristics to manageable proportions, economists have focused on few theoretical market structures that explain what we encounter in real life: a) Perfect competition b) Monopoly c) Monopolistic competition d) Oligopoly Before delving into specific market structures, we have to remember that to maximize refits we have to consider two variables at the same time: Cost and Revenue. The profit maximizing level (or range) of output will depend on the interaction of the two variables. Level of Competition in the Market There are a number of key determinants of the level of competition. ) Product differentiation: Products may be differentiated in a number of ways. They may actually be physically different, performing different tasks; alternatively, they may have cosmetic differences perform the same task, but the small differences in style, shape, color, etc. Enable consumers to differentiate between them. In some cases the products may have no differences at all, how ever, they can be differentiated as a result of the different images that are generated in the course of promoting them. ) Substitutability of the goods produced by different firms (or the potential for substitution). C) Production scale is an important determinant. If substantial economies of scale exist, then efficient plant must be of an appropriately large size; thus, it is impractical to expect a large number of firms to exist because the available market is not large enough. D) Another hindrance to competition in an industry is he existence of barriers to entry barriers to exit. Perfect Competition [Firms without Market Power] Assumptions of Perfect Competition a) Price taking firms (I. . Has no market power) c) No barriers to entry or exit from the market d) No government intervention e) The product must be identical f) Perfect information on market conditions prices by both buyers sellers g)Profit maximizing firms h) The market clears so that all goods produced are sold I ) u shaped short run average marginal cost curves j) The firms demand curve is perfectly elastic (horizontal) P = AR = MR. What level of output would a profit maximizing firm choose in a perfectly competitive market? The firm faces two questions: First: should the firm produce or not in the short run (since the firm always has the option to produce nothing)? In the short run, a firm should produce if and only if average revenue is not less than average variable cost. Second: if the firm decides to produce, what should the level of production be? For a firm to maximize profits, the output should be the one at which marginal revenue (MR.) equals marginal cost (MAC), and the MAC curve cuts the MR. line from below. The firm will keep increasing output so long as it can add more to revenue than it adds to cost. When the firm has chosen its optimum output, it is in equilibrium because it has no incentive to alter its behavior in the short run. Supply Curve of the Firm Remember? The supply curve shows the relation between quantity supplied market price. In the last few slides we agreed that: For prices below PVC, the firm will supply zero units For prices above PVC the firm will equate price and marginal cost Concluding Remarks a) In perfect competition it is difficult for a firm to make high profits, the entry of new rims will eventually ensure that all economic profit is eliminated by the lowering of price. ) Although in theory, economic profits should be equal to zero, in reality, excess profits can still be earned in competitive industries. This happens if the industry is in a disequilibrium position, or if the firm can earn economic rent derived form a unique advantage. Monopoly [Firms with total Market Power] Monopoly markets consist of one supplier who has total control over the price I. E. , the monopolist is a price maker exercises considerable market power. The strategy in monopoly scenario typically involves the maintenance of the monopoly advantage. That is, the creation maintenance of barriers to entry to other firms fending off attempts by government to interfere with the monopoly market outcome. A monopoly exists when only one firm supplies a unique product, with no substitutes, to a market in which entry by other firms is prohibited and the dissemination of market information is poor. Unlike the perfectly competitive firm, the monopolist will be confronted by a downward sloping demand curve for its product which is also the industry demand curve. Since a monopolist must generally lower its price to all selling one additional unit of output must necessarily be less than the price for which the unit is sold (because there will be a reduction in revenue from the previous sales level resulting from the price fall). Since the change in revenue as a result of changing sales by one unit is marginal revenue, the marginal revenue curve of the monopolist is shown as declining more rapidly than its demand curve. The rule for finding the profit maximizing level of output remains unaltered (equating MAC and MR.). Price however is determined by the market demand curve. The problem for the monopolist is that unless it is sanctioned by the government it is likely to be the subject of government anti-monopoly legislation. Poor management or inability to compete with new competitors in a global market place can also be factors. The demise of the British automobile industry is an interesting example, where all major British manufacturers progressively exited the industry during the second half of the 20th century. Pricing in a Monopoly We have already seen that monopolists should attempt to set MR. = MAC. However, in doing so, they may also be able to take advantage of the fact that they can discriminate between groups of customers, in a way that would be more difficult for a non-monopolist to do, in order to increase their profits further. In the following slides we will see how monopolists can further exploit their market position in deriving more than fair profits in the market place. A)Price Discrimination Price discrimination is often a means by which profits from sales can be substantially increased. First-degree price discrimination is said to exist when a firm s able to sell each unit at a different price as indicated by the price on the product demand curve at which the particular unit falls. Such price discrimination is rare. Second-degree price discrimination occurs when prices are set on the basis of quantities purchased. This is a common way of discriminating between wholesale retail customers. The most common form of price discrimination is third-degree price discrimination. This occurs when suppliers are able to divide their markets up into segments and charge a different price to each segment, equating MR. = MAC in each of the sub-markets. By discriminating in the price charged according to the relative elasticity of demand in each market the firm can increase its total profits. B) Two-Part Tariffs Increasingly, consumers are exposed to two-part tariffs?particularly from public utilities for the supply of electricity, water, gas, etc. The two-part tariff involves the charge off fee for the right to buy a product plus a usage fee for each unit of the product purchased. Clearly, firms that implement two-part tariff regimes will have some monopoly over the market. A firm using this approach must determine both the bevel of the initial fee and the per unit usage cost. Monopolistic Competition [Where competition is almost perfect, but not quite] Monopolistic competition is perhaps most similar to perfect competition except that the firm is faced with a downward a unapologetically competitive scenario is typically exemplified by attempts by a firm to differentiate its product from those of its competitors. Although there exists many firms in the industry, consumers perceive some differences in the products of each firm. Thus, rather than having one demand curve for the product of the industry, here is a multitude of demand curves one for each firm. Thus, each firm is confronted by its individual, downward sloping demand curve. The extent to which an individual firms demand curve slopes down is determined by the level of product differentiation that it has been able to attain. The more differentiated the product, the steeper the demand curve. The unapologetically competitive firm behaves Just as the monopolist would. It equates MR. with MAC and chooses that price and output level which maximizes profits. However, this is not monopoly and in the long run, such a situation cannot be sustained. Oligopoly [Where firms tend to compete on anything but price] Oligopoly, where only a few large firms producing a unique product (such as petroleum) exist, is a quite common form of market structure non-price forms of market competition conducted by oligopolies can often be extremely aggressive. Entry to exit from the industry is generally prohibited very little market sensitive information is available buyers are largely kept uninformed. Oligopolies firms would prefer to operate in some form of cartel arrangement, in which they would all agree to operate in a manner similar to that of a monopoly. Such behavior is illegal in most countries. Two models are commonly presented in an attempt to explain the behavior of oligopolies. The first is a model of price leadership. The second is the model of the kinked demand curve. Apart from the theories, there are a number of possibilities that can exist in an oligopolies market: Oligopoly Possibilities 1. Collusion or tacit collusion (cartels). 2. One firm (price leader) behaves like a monopolist in his share of the market, other firms follow the price leaders prices closely. Under such circumstances, if the price deader tries to change his prices, he cannot benefit much from such change! If he raises prices, other firms may not follow him he loses market share; if he lowers prices the competition also reduces pieces. Thus competition is always on aspects other than the price. 3. Fierce price competition, where all of them loose their supernormal profits. Cartels A cartel is created when a few firms agree to collude on prices to derive the benefits of a monopolist. Whilst the establishment of a cartel results in the product being marketed under monopoly-like conditions, it pays off if one firm decides to heat the cartel agreement. In this case, the firm by reducing price below the agreed on price, can acquire a larger market share increase its profits. This triggers retaliation from the remaining cartel members, which makes cartels quite unstable. Game Theory In an oligopolies market, decision makers have no clear theoretic background that helps them in setting their direction, or guides them as how the competition will react to any change in price. Game theory may help the decision maker in selecting a strategy by attempting to estimate the pay off for each strategy. This