Reference no: EM131976538

Assignment

Answer the questions below using 50 words or more in your own opinion. No plagiarism. Complete and flowing sentences are required.

1. Economic costs allow for us to see not only how much something costs...but also, how much our time/ opportunity could have cost.

Many people need to take this into consideration when making a long term decision. Would you agree or disagree?

Your example is accurate and applicable. Also, accountants are mainly concerned with explicit costs because they are most interested in the bottom line (dollars and cents). They are not concerned with opportunity costs (this is what economists are concerned with) since opportunity costs deal with what 'could have been/ should have been earned'.

2. Explain and understand cost of production using Principles of Microeconomics, Ch 13: The Cost of Production.

3. If we compare and contrast the four market structures, it is evident that one market structure is most practiced and evident in the United States. It is the one that promotes and strives on competition. It is the one that has a WIDE array of products, choices and price range. In fact, it is currently the market structure that most industries fall under. For example, think about industries such as the fast food, clothing, furniture, restaurant, and grocery stores--- Which one?

In your opinion, why is this market structure the most commonly practiced with all industries?

Is this a good thing?

4. When we look at the ease to enter the different market structure, there is no doubt that 'monopoly' is the hardest. Why? -- There is only ONE firm that has established 'economies of scale' with the production of their good or service. If another competitor came close to competing with them, they would simply lower their price (even in the long term) and still remain profitable. In your opinion, is this why the Department of Justice attempts to eliminate monopolies from the United States?

5. A cartel is branch of an oligopoly. There are still a handful of large firms and many smaller firms. For instance, the diamond industry and the petroleum industries are examples are oligopolies. However, the main difference is that there is cooperation among the firms. Cooperation with output, price, marketing, distribution and future planning. Within a capitalist economy, an oligopoly would not maximize efficiency for both the consumer OR the producer. In your opinion and research, does this make the completion much more fierce? Less?

Principles of Microeconomics, Ch. 13: The Costs of Production.