...‘Market Efficiency’ PowerPoints and Activities 2008/20144[2] ‘Market efficiency’ PowerPoints and activities 1 Content The documents in this section provide support material for the stage 2 units. Document 1. Covers A sample program for stage 2 which covers unit 2AECO in the contexts of options from Economics D304 Sample lesson outlines for Business firms and markets–Unit 2AECO Notes and PowerPoint slides on Market efficiency and equity—Unit 2AECO A range of teaching and learning materials covering the concepts of Market efficiency and equity for the 2AECO unit and some applications of these concepts: 4.1 4.2 4.3 4.4 4.5 4.6 4.7 The Sundance film festival—A case study with suggested answers PowerPoint slides—Efficiency and equity, concepts and applications PowerPoint companion—Efficiency and equity, concepts and applications Extension activities—The concepts of efficiency and equity Extension activities discussion topics Emissions trading schemes (ETS) Review Questions—Efficiency and Equity, with suggested answers 2. 3. 4. 2 ‘Market efficiency’ PowerPoints and activities Document 1: Sample program for Stage 2 The purpose of this document is provide an example of how the Stage 2 units can be programmed by drawing on four of the Options from the Economics D304 subject and using them as contexts for unit 2AECO. In this sample program the options from D304 drawn on to provide contexts are Australian market forms, Firms and production and Environmental...
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... Copyright © 2000 by Harcourt, Inc. All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording, or any information storage and retrieval system, without permission in writing from the publisher, except that, until further notice, the contents or parts thereof may be reproduced for instructional purposes by users of PRINCIPLES OF ECONOMICS by N. Gregory Mankiw. Portions of this work were previously published. ISBN 0-03-026997-0 1. A production possibility curve might be shifted outward by each of the following EXCEPT; A. Increase in immigration B. Movement toward a more open approach to free trade C. Decrease in unemployment D. Increase in educational levels of the general population E. All of the above would shift the PPC outward Answer C. Decrease in unemployment James Chasey 2. A production possibility frontier that is represented by a straight line rather than the usual bowed shape would indicate; A. Increasing opportunity cost B. Decreasing opportunity cost C. Constant opportunity cost D. Absolute and Comparative Advantage E. Comparative but not absolute advantage Answer C. Constant opportunity cost James Chasey [pic] Figure 1 3. If the current price for the perfectly competitive firm represented in Figure 1 is $10.00, what would be the result of an increase in...
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...PARRISH, ERIN DODD. NICHE MARKET OPPORTUNITIES IN THE GLOBAL MARKETPLACE. (Under the direction of Dr. Nancy Cassill and Dr. William Oxenham). The purpose of this research was to analyze how a niche strategy can be used by US textile and apparel companies to compete with lower priced imports. With the increasing globalization of the industry, it has been suggested that companies focus on products that offer a competitive advantage over commodity products (Standard and Poor’s, 2003). One way of doing this is to focus on specialized, or niche, products. The conceptual models used in this study provided a framework for specialization within trade. The trade theories examined were 1) Ricardo’s Comparative Advantage Theory (Ricardo, 1817), 2) Heckscher-Ohlin Trade Theory of Factor Proportions (Heckscher & Ohlin, 1991), 3) Posner’s Technology Trade Gap Theory (Posner, 1961), 4) Vernon’s Theory of the Product Life Cycle of Trade (Vernon, 1966), and 5) Porter’s Model of Competitive Advantage (Porter, 1998). Each of these trade theories predicts specialization as a result of trade. This means that as trade barriers decrease, a country’s resources will focus on those processes in which it has a competitive advantage. For the US textile and apparel industry, this means moving away from basic textile items used in apparel production, such as basic fabrics, and moving towards more focused and specialty products, which includes niche products. The methodology used in this study consisted of...
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...Week 7 assignments Task 1: Consider the following table of costs for the Winsome Widget Factory, which operates in a perfectly competitive market. The market price faced by this firm is $6.00 per widget. a. Fill in the formula for AFC, AVC, ATC, MC, TR, MR, and Total Profit at the top of the column in the gray section within the table. b. Fill in the missing values for TFC, TVC, AFC, AVC, ATC, MC, TR, MR, and Total Profit in the blue sections of the table. | Winsome Widget Factory | |Output |Total Fixed Cost | |Barnes & Noble books |-4.00 | |Coca-Cola |-1.22 | |Cigarettes |-0.25 | |Beer |-0.23 | |Gasoline |-0.06 | In your project, address the following questions: Using the elasticity estimates in the table above, classify the price elasticity demand as elastic or inelastic. Explain your reasoning. Explain the implications of those classifications on tax revenue collections when the per-unit tax increases as opposed to decreases. Using those classifications, make some assumptions regarding tax incidence. For instance, will buyers...
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...Studies BA 360 Principles of Microeconomics Table of Contents Chapter 1 Ten Principles of Economics 3 Chapter 2 Thinking Like an Economist 7 Chapter 3 Interdependence and the Gains from Trade 10 Chapter 4 The Market Forces of Supply and Demand 13 Chapter 5 Elasticity and Its Application 20 Chapter 6 Supply, Demand, and Government Policies 26 Chapter 7 Consumers, Producers, and Efficiency of Market 31 Chapter 8 Application: The Costs of Taxation 35 Chapter 9 Application: International Trade 39 Chapter 10 Externalities 42 Chapter 11 Public Goods and Common Resources 45 Chapter 12 The Design of the Tax System 47 Chapter 13 The Costs of Production 49 Chapter 14 Firms in Competitive Markets 53 Chapter 15 Monopoly 57 Chapter 16 Monopolistic Competition 61 Chapter 17 Oligopoly 64 Chapter 18 The Markets for the Factors of Production 68 Chapter 19 Earnings and Discrimination 73 Chapter 20 Income Inequality and Poverty 76 Chapter 21 The Theory of Consumer Choice 79 Chapter 22 Frontiers of Microeconomics 82 Chapter 1 Ten Principles of Economics I. Significance * How people make decisions * How people interact * How the economy as a whole works II. Highlights The word economy comes from the Greek word oikonomos, which means "one who manages a household." A household faces many decisions, which means he/or she must allocate its scarce resources among its various members...
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...Q2 PRICING POLICY Pricing policy refers to how a company sets the prices of its products and services based on costs, value, demand, and competition. Managers should start setting prices during the development stage as part of strategic pricing to avoid launching products or services that cannot sustain profitable prices in the market. This approach to pricing enables companies to either fit costs to prices or scrap products or services that cannot be generated cost-effectively. Through systematic pricing policies and strategies, companies can reap greater profits and increase or defend their market shares. FACTORS INVOLVED IN PRICING POLICY The pricing of the product involves consideration of the following factors: (i) Cost Data in Pricing: Cost data occupy an important place in the price setting processes. There are different types of costs incurred in the production and marketing of the product. There are production costs, promotional expenses like advertising or personal selling as well as taxation, etc. They may necessitate an upward fixing of price. For example, the prices of petrol and gas are rising due to rise in the cost of raw materials, such as crude transportation, refining, etc. If costs go up, price rise can be quite justified. However, their relevance to the pricing decision must neither be underestimated nor exaggerated. For setting prices apart from costs, a number of other factors have to be taken into consideration. They are demand and competition. Costs...
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...1. A perfectly competitive market has the following characteristics. (i) The market consists of buyers and sellers who are price takers. (ii) Each firm in the market produces undifferentiated and homogenous products. (iii) Buyers and sellers have perfect information about the price prevailing in the mark! About the availability of commodities at any given point of time. (iv) Firms can enter or exit the market freely. Implications: The implications of all these features is that there is single price in the mark no individual buyer can change it. On this price a firm can sell any amount of output. Because of flu demand of a firm is perfectly elastic and hence a horizontal line at the market price. Another implication is that a firm will produce only when it is profitable to produce, otherwise it will stop the products. * Characteristics of a Perfectly Competitive Market * The Law of One Price * Price Taking Behavior * Free Entry * Accounting vs. Economic Profit * Marginal Revenue * The Firm's Short Run Supply Curve * The Shut Down Price * The Short Run Market Supply Curve * Short Run Perfectly Competitive Equilibrium * The Firm's Long Run Supply Curve * Long Run Perfectly Competitive Equilibrium * The Long Run Market Supply Curve * Pecuniary Effects * Economic Rent * Producer's Surplus 1. Perfectly Competitive Market Characteristics of a perfectly competitive market/industry: * Numerous buyers and...
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...22 Marketing Mix 22.1 Introduction The basic task of marketing is the delivery of product(s) to consumers so that their needs are fulfilled and organisational objectives are also achieved. This involves several important decisions, e.g. deciding about the product or products which should be offered for sale, price of the product, markets where products may sell and the means of communication with the consumer for the sale of the product. All these decisions form part of marketing-mix. In this lesson we shall study about the concept of marketing mix, its components and the relationship among various components of marketing mix. 22.2 Objectives After studying this lesson, you will be able to : explain the concept and characteristics of marketing mix; describe various components of marketing-mix; establish the relationship amongst various components. 22.3 Concept and Characteristics of Marketing Mix The process of marketing or distribution of goods require particular attention of management of business because production has no relevance unless products are sold. Marketing mix, simply stated, is the process 20:: Business Studies of designing and integrating various elements of marketing in such a way as to ensure the achievement of enterprise objectives. The elements of marketing mix have been classified under four heads - product, price, place and promotion. That is why marketing mix is said to be a combination of 4 P’s. Decisions relating to the product include...
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...Multiple Choice Questions (Only one correct answer for each question. 4 points each, 40 points total. Please put your answers to all the 10 questions in the table after Question 10.) Question 1. When an economist talks of scarcity, the economist is referring to the A) ability of society to employ all of its resources. B) ability of society to consume all that it produces. C) inability of society to satisfy all human wants because of limited resources. D) ability of society to continually make technological breakthroughs and increase production. Answer: C Question 2. The production possibilities frontier is A) upward sloping and reflects unlimited choices. B) upward sloping and reflects tradeoffs in choices. C) downward sloping and reflects unlimited choices. D) downward sloping and reflects tradeoffs in choices. Answer: D Question 3. If the price of a candy bar is $1 and the price of a fast food meal is $5, then the A) relative price of a candy bar is 5 fast food meals per candy bar. B) money price of a candy bar is 1/5 of a fast food meal per candy bar. C) relative price of a fast food meal is 5 candy bars per fast food meal. D) money price of a fast food meal is 1/5 of a candy bar per fast food meal. Answer: C Question 4. The price elasticity of demand is defined as the magnitude of the A) change in quantity demanded divided by the change in price. B) change in price divided by the change in quantity demanded. C) percentage change in quantity demanded divided by the percentage...
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...CHAPTER ONE Introduction 1.1 Background to the Study Most producers do not sell their goods directly to the final users between them stands a set of intermediaries performing a variety of functions. The process of distribution of goods involves all human and physical means which aid the smooth transfer of such good from the manufacturer to the final consumer. Nickeil (1998) The growing of distribution is a key strategy variable in marketing management. In deed, if one look at the major strategy of the marketing mix – product, price, promotion and distribution, the greatest potential for achieving a competitive advantage now lines in distribution. Distribution still offers a new frontier for competing usefully especially if the emphasis is placed on the design and management of superior marketing channel systems to provide excellent customer services. Yet design optimal marketing channel system to boost sales, formulating innovative distribution strategies and management channels system effectively is no simple task. To day, companies are faced with choice of distribution path or strategy that will make product readily available to potential customers. Achumba (1994). Also the need for other institutions or intermediaries in the delivery of good is sometime questioned, particularly since the profits they make are viewed as adding to the cost of product which may eventually slow down sales of the product. The concept of distribution refers to where and how product and services to...
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...OF INDIA Page 1 DISCLAIMER COMPETITION CONCERNS IN FILM INDUSTRY 2013 This project report has been prepared by the author as an intern under the Internship Programme of the Competition Commission of India for the period of one month from 7th January 2013 to 31st January 2013, for academic purposes only. The views expressed in the report are personal to the intern and do not reflect the views of the Commission or any of its staff or personnel and do not bind the Commission in any manner. This report is the intellectual property of the Competition Commission of India and the same or any part thereof may not be used in any manner whatsoever, without express permission of the Competition Commission of India in writing. COMPETITION COMMISSION OF INDIA Page 2 ACKNOWLEDGEMENT COMPETITION CONCERNS IN FILM INDUSTRY 2013 This research project is undertaken by me as a part of Internship programme of Competition Commission of India. Dr. K. D. Singh, Deputy Director (Law) at CCI guided me through this project. His invaluable inputs and suggestions are deeply acknowledged. Library Staff of CCI also helped me throughout the internship period. This project would not have been possible without assistance of library staff. CCI is a good platform to recognize the help and guidance furnished to me by my mentor as well as all the other persons in this regard; I heartily acknowledge their help and support rendered to me. TULIKA SINGH COMPETITION COMMISSION OF INDIA ...
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...GLOBAL MARKET ASSESSMENT FOR HANDICRAFTS VOLUME I FINAL DRAFT JULY 2006 This publication was produced for review by the United States Agency for International Development. It was prepared by Ted Barber and Marina Krivoshlykova of Development Alternatives, Inc. GLOBAL MARKET ASSESSMENT FOR HANDICRAFTS VOLUME I FINAL DRAFT The authors’ views expressed in this publication do not necessarily reflect the views of the United States Agency for International Development or the United States Government. FOREWORD This paper was written as part of the Accelerated Microenterprise Advancement Project (AMAP) Business Development Services Knowledge and Practice (BDS K&P) research initiative. The AMAP BDS initiative’s major objective is “integrating micro and small enterprises into productive value chains to create wealth in poor communities.” The research draws on experience and insights from: • Interviews with leading handicraft buyers in the United States, the European Union, and the Caribbean, including importers and retailers currently sourcing from Haiti, those who have done so in the past, and those who source handmade products from other destinations; • Interviews with market experts, such as product development consultants, designers, enterprise development consultants, and marketing specialists who work with handicraft producers in developing countries; • Discussions with market experts and USAID at a roundtable conducted in Washington...
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...ABSTARCT Marketing is the process of planning and executing the concepts of pricing, promotion and distribution of ideas, goods and services that satisfy individual and organizational goals (AMA). Successful marketing requires a winning strategy. Understanding marketing strategy formulation lets you properly evaluate your organization's marketing needs. You can then gear your marketing strategies to achieve maximum effectiveness. Marketing strategy formulation is the process of defining an organization's marketing goals and objectives. This allows formulators to create a guide. They examine the market and in doing so, use that information to determine what marketing approaches will be best at reaching clients and enticing them to seek out the business' services. Products and services constitute the platform for attracting customers, basically all organizations are in the business of attracting customers. Hence, the need to compete favourably. As a general rule, a good first step in a marketing strategy formulation is determining what you want to accomplish in terms of marketing. It could be as simple as letting potential customers know what you sell, and how your product can benefit them.The next step is to examine internal and external trends. These could include spreading the word about a next-generation version of one of your products (internal), and how it improves upon other products in the industry (external). After that, assign a value to the strategy's outcome...
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...transformed the PC from proprietary systems into open structure, PC has been dominated by Wintel (Windows + Intel) structure. Apple insists in adopting proprietary and niche market strategies made them keep losing market share till less than 3% in 2001. However, its strategy with ignoring the market trends makes it lose the market after years. 1.1 Industrial changes: Apple lost PC market because of ignoring industrial changes The PC industry has evolved in the past decades. There are 3 phases. Let’s take a look at these phases and Apple’s position in each phase. Before 1981: Proprietary Systems. Every PC producer had to develop self own hardware and software. It was proprietary. Most buyers were technical people. There were 2 main streams in the market: Apple style machine and IBM style machine. During this period, Apple was the leader. Its strong developing ability made the Apple II became a family commodity. However, Apple didn’t use patent or trade secret to protect its products. Many computer companies re-engineered Apple II and made cheaper similar products to compete in the market. For example, Acer copied Apple II and developed the Little Professor Series. 1981- 1997: Open structure. IBM turned the PC into open structure. Compaq, HP and many other producers started to show in the market to produce IBM compatible PC. During this period, hardware can be separated into CPU, mother board, power, disk drive, and other peripheral businesses. Software can be...
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...highlighters, glue or correction fluid. Section A Answer Question 1. Section B Answer any two questions. You may answer with reference to your own economy or other economies that you have studied where relevant to the question. At the end of the examination, fasten all your work securely together. The number of marks is given in brackets [ ] at the end of each question or part question. This document consists of 4 printed pages. DC (NH) 65434/2 © UCLES 2013 [Turn over 2 Section A Answer this question. 1 The effect of oil price rises In 2011, there were big increases in oil prices which led to comparisons with a period in the 1970s when oil prices also rose steeply. In the 1970s, the macroeconomic policy used in the UK was to increase budget deficits. By contrast, in 2011, the macroeconomic policy was to try to reduce the budget deficit. In the 1970s some thought the effect of oil price increases would be inflationary while others thought the effect would be deflationary. The following points were made. In the 1970s • consumers would have to spend more on oil but they would spend less on other things. • consumers would not spend their savings. • firms could pass on the increased cost of production, caused by higher oil prices, to...
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