Microecon how to save a lot of money fast.

Recently, I have learned in class lectures some effects of deregulation. It can be influenced when the costs and prices are how to save a lot of money fast dropped dramatically, big welfare increases, safety per mile increases, relative wages fell, even the nominal ones, and the unions in those industries that lost their power. The airline industry can be an illustration of deregulation. Originally, airlines were regulated by the ICC. In 1938, civil aeronautics board (CAB) was formed to set prices in the interstate airline industry. Existing interstate carriers were allowed to keep operating. No new entry was allowed for nearly 40 years. They couldn’t complete by prices, but by other factors, which were level of service, number of flights, particularly direct flights. Flights were often loss that half full. During 60’s and 70’s, intrastate came in california and texas was charging much less how to save a lot of money fast and was still profitable. Deregulation (under alfred kahn) started in early mid 70’s. Airlines industry found deregulation. They made the following claims, safety would suffer (they cut maintenance to save money) and people in small cities will have no service, claimed they engaged in cross-subsidization. After that, safety actually improved (first cars after deregulation had no accident). Per passenger-mile fatality rate is lower than ever before. Technically, FAA regulated safety, it never changed. Smaller cities had more service from more airlines, but fewer direct flights as a result. Roughly 80% of today fliers pay less than under regulation. There was great increase in ridership. For example, in 1978, there were 183 billion passenger miles and in 2008, there were 800.9 billion passenger miles. Hence, there was big increase in welfare. Because of deregulation, there were several airlines driven to bankruptcies such as panam, eastern, braniff, midway, TWA, and ozark. Delta, continental, northwest, american, usair, united have all at one time or another filed for how to save a lot of money fast bankruptcy.

After learning this week’s lessons, I find that microeconomics is somehow related to one of how to save a lot of money fast another class of mine, business law. The antitrust law helps all oligopoly from becoming monopoly. There are three main acts in antitrust law. The sherman act helps restraint of trade and monopolization, the clayton act helps typing arrangements, mergers, and price discrimination. Last act is the federal trade commission act, where they help unfair method of competition. There are number of tricks to maintain oligopoly and even how to save a lot of money fast may become monopoly but antitrust law busts them up. There are three ways in antitrust law that helps oligopoly how to save a lot of money fast from becoming monopoly. First, resale price maintenance, a party at one level of distribution (i.E. A manufacturer) requires a party at another level of distribution (i.E. Retailer) to sell a good or service at a designed price, which is so called vertical price fixing. This is a per se violation. Second, predatory pricing is usually a large company that selling low how to save a lot of money fast price to drive competitors away and tries to be monopoly. A good example is wal-mart which in some small cities prohibited wal-mart to open in their cities because it may drive how to save a lot of money fast other businesses away. Another example is japanese motor. When japanese cars first imported into united states, their prices were really cheap, but it took over other motor businesses and the government how to save a lot of money fast had to tax them very high in order to reduce how to save a lot of money fast the amount of japanese cars in US market. Third, typing arrangement occurs when a seller refuses to sell a how to save a lot of money fast product to a customer unless the customer purchases a second how to save a lot of money fast product. An example for this is microsoft. When you buy microsoft, it came with internet explorer which drive out netscape explorer. Netscape explorer sued them, but microsoft argued that they are one in the package. In conclusion, the antitrust law helps prevent companies to become monopoly and how to save a lot of money fast oligopoly.

In labor economics, the hourly workers can determine the amount of work per how to save a lot of money fast week. In case one go from taking home $10 per hour to taking home $15 per hour, the cost of not working has gone up. In labor supply, substitution and income effects have been influenced the wage of how to save a lot of money fast workers. When price of leisure goes up, you substitute towards working more. That is substitution effect. When workers have a higher wage, make more leisure is a normal good, so income effect has one work less when wage increase. The individual labor supply curve can be backward bending. Up to the peak wage, substitution effect dominates, and workers work more if take-home pay increase hours worked. For wages larger than the peak wage, income effect dominates and an increase in take-home pay decrease hours worked. The wages differ because of many reasons. First, it is because of different amount of training required. Second, it is because of different opportunity cost. Third, it is because of different productivity. Forth, it is because of ease of substitution. Education also influences the earnings of workers. College grad students earn an average of roughly 80% more than high school grad students because many high-paying jobs require a college degree for certification purposes. A person who gets more training that makes more productive. Plus, more motivated and intelligent people are more successful and more how to save a lot of money fast likely to go to college. About the policy in tax revenue, whenever the taxes are cut, tax revenue is reduced in short term. If the taxes on lower-wage workers are cut by 10%, revenue will drop but the drop will be less than how to save a lot of money fast 10%. If the taxes on highest wage workers are cut by how to save a lot of money fast 10%, revenue drops by more than 10%.

There are four basic market models which are pure competition, monopolistic competition, oligopoly, and pure monopoly. This week in class, we discuss more about the pure competition which also know how to save a lot of money fast as perfect competitive. There are many conditions in perfect competitive. There are many buyers and sellers, identical goods, no barriers to entry or exist cost. There is also perfect information where the buyer and seller how to save a lot of money fast have the same amount of information about the products or how to save a lot of money fast goods. There will be no advantage for established firms, no economies of scale, and last is large market demand for that goods or how to save a lot of money fast products. In our economy today, perfect competitive markets seem to be impossible where most of how to save a lot of money fast the requirements meet but missing one or two others. One of the close examples for pure competition is agriculture how to save a lot of money fast which will be if there are no economies of scale. Base on the perfect competitive market, we can find how to profit maximization in short and how to save a lot of money fast long run and minimize losses. In short run, we can maximize our profit find where the largest gap how to save a lot of money fast between the total revenue curve and the total cost curve. When star a business, we will have the market loss at first due to how to save a lot of money fast the fact that we need capitals, machinery, labors cost to make products then sell them to create how to save a lot of money fast revenue. When the total revenue curve above total cost curve is how to save a lot of money fast a market profit but when the total cost curve cross how to save a lot of money fast the total revenue curve again that point is the breakeven how to save a lot of money fast point where you won’t make any profit or loss any money, but after that is when you start to loss profit. Most company will stop product at that point because you how to save a lot of money fast want to make as much as your company can product how to save a lot of money fast but not when you make loss money. The additional unit that you product is the margin unit how to save a lot of money fast where the margin cost and margin revenue come into the how to save a lot of money fast play. The margin revenue is staying constant but the margin cost how to save a lot of money fast is increase over time. As the last unit that you product is breakeven, that is the stopping point of your production.

The consumer theory in economy said that an inferior good how to save a lot of money fast is a good that decreases in demand when consumer income how to save a lot of money fast rises and the normal goods is the opposite for which how to save a lot of money fast they are those for which consumers’ demand increases when their income increases. Base in the wikepidea website, it said that “inferiority is an observable fact relating to affordability rather than how to save a lot of money fast a statement about the quality of the good. As a rule, too much of a good thing is easily achieved with how to save a lot of money fast such goods, and as more costly substitutes that offer more pleasure or how to save a lot of money fast at least variety become available, the use of the inferior goods diminishes.” depending on the indifference curves, the amount of a good bought can increase, decrease, or stay the same when income increases. Cheaper cars and inter-city bus are examples of the inferior goods. Consumers will buy cheaper cars when their income is low, but when consumer’s income increases the demand of the cheap cars will how to save a lot of money fast decrease and they would prefer a more expensive car. Inter-city bus service is a cheaper way for transportation than how to save a lot of money fast air or rail travel, but is more time-consuming. Traveling by bus is prefer when you want to save how to save a lot of money fast money but when your income increase, you would more likely to use better and faster ways how to save a lot of money fast of travel. Goods and services used by poor people for whom richer how to save a lot of money fast people have alternatives exemplify inferior goods. The rich eat appealing, expensive and nutritious foods and the poor eat the fast how to save a lot of money fast food, frozen or canned goods. Geographic regions or culture can affect the inferior goods too how to save a lot of money fast for examples, potato in andean region is consider inferior goods because they how to save a lot of money fast have many of them there and the higher income would how to save a lot of money fast prefer rice or wheat products over them, but in bangladesh in asia is the opposite where potato how to save a lot of money fast is consider an expensive source of calories and a high-prestige food, especially when eaten in the form of “french fries” by urban elites.

Most of products in united states are made in china, from a pencil to a door, from a candle to a sink, everything in a house or an institution is 90% imported from china. So why is there international trade at first place? Firstly, every country has things it wants but cannot produce these how to save a lot of money fast things. So they can only obtain them through trade. For example, due to the geographic revolution, most of oil all over the world has been concentrating how to save a lot of money fast in mid-east areas in those countries such as iraq, iran, libya, syria, israel, palestine, sudan and ect. Other countries in the world have to import oil from how to save a lot of money fast these mid-east countries for fuel, the most important thing influences on economy. Secondly, each country is relatively better suited to produce different things. If they specialize in these goods and trade in free, they will become healthier. This is also called the law of comparative advantage. Japan specializes in producing electronic devices like tvs and cars how to save a lot of money fast while brazil specializes in producing agricultural products like cacao and how to save a lot of money fast fruits. Thirdly, international trade exploits economies of scales. It means the cost is cheaper on average when produced how to save a lot of money fast more. Trade is not a zero sum game because it’s always one’s gain is another one’s loss. However, trade still takes place since both sides benefit. As long as the equilibrium prices of both countries are how to save a lot of money fast different, there are potential gains from trade. A country has surplus will likely to export and a how to save a lot of money fast country has shortage will mostly to import the product from how to save a lot of money fast the exporting country.

When the margin benefit (MB) meets margin cost (MC), it is the most efficiency use of resources which the how to save a lot of money fast product efficiency being uses at maximum, but as the result of under or over production will how to save a lot of money fast create the deadweight loss. It is the equilibrium when the supply curve meet the how to save a lot of money fast demand curve or MB=MC. When buyer and seller come together automatic and the market how to save a lot of money fast is automatic adjust itself and come equilibrium is in the how to save a lot of money fast theory in the book call the invisible hand by adam how to save a lot of money fast smith. That theory won’t work in most of the situation because to be how to save a lot of money fast able to do that, buyer and seller must have the same knowledge about the how to save a lot of money fast product or the subject to be trade in transaction. There are also lots of obstacles in efficiency, like the price floor/ceiling, taxes/ subsidies, externalities, public goods, monopoly, and high transaction cost. One of the good examples for externalities is pollution where how to save a lot of money fast the cost is born from natural which is not in how to save a lot of money fast the trade. Externalities can be in production and consumption. Continue in class, we learn that there are fairness of rules (private properties) and fairness of result (gouging), but I’m interest in the market result where some economic book how to save a lot of money fast not mention. Market failures are that anything that prevent the efficiency being how to save a lot of money fast reach. Again, externalities are one of its example and asymmetrical information where how to save a lot of money fast buyer didn’t know all the information about the product like the how to save a lot of money fast seller. Imperfect competition and high entry/exit costs are also include in market failures.

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