Micro26isa Essay Example | Topics and Well Written Essays - 1000 words

Micro26isa - Essay Example In this respect, the firms only have the option of working with the prevailing price or lower. This constitutes what taking price is. There are various assumptions that compel the firms in this market to take prices. Sellers and buyers are many and any action towards increasing prices will only worsen sales through migration of buyers. Products are homogeneous and change of price will only divert buyers to get the same products from other firms selling at the prevailing or lower prices. These assumptions play a significant role in pushing firms to take the market prices or fail. Some of the industries with such assumptions include clothing and textile, Cosmetics, electrical and electronics industry among others. Some industries like medicine and drugs, energy among others cannot accommodate these assumptions hence exhibit other market structures. 2. Shut-down Point for a Firm (20 points) When will the competitive firm shut down in the short run? When will it incur a loss but continue to produce? Draw a graph showing each scenario and explain. It is important to note that shut down point is the level of output and price where the firm can just cover its total variable cost. Some of the key issues to consider in determining this point include; relative position of the average variable cost which is always at its minimum for this condition. Where the marginal cost curve crosses the average variable cost curve also sums up to shut down of the firm. At this point, the producer is indifferent between producing and temporarily shutting down. The firm incurs a loss from either action. In the event that market prices fall below the firm’s average variable cost, temporary shutdown is preferable in the short run. In case the firm continues to produce, losses from its operation merely add to losses that results from the firm’s fixed costs and shut down will lead to slump in losses. Figure 1 : Shut down when P < AVC ATC Price MC AVC P = MR Quantity A price tak ing firm that intends to remain operational will minimize losses or maximize profit if it will be able to produce the output level at the point where P = MC and variable costs are also covered. In this case, the portion of the firm’s short run marginal cost curve which lies above its average variable cost becomes the short-run curve of the firm. Figure 2: retrieved on May 13, 2013 from: http://www.analystnotes.com/notes/subject.php?id=119 Considering the grahp above, in case the price is below P1, the firm should shut down its operation. Long-Run Cost Curve, Economies of Scale, and Firm Size (15 points, 5 points each) A. Explain how economies of scale and the long-run cost curve influence firm size and firm concentration. The theoretical presentation starts with the short-run and shows the average cost curves (Total, fixed and variable) along with the marginal cost. The curves are presented in Figure 1 MC ATC cost in $ AVC AFC Quantity Figure 1. Short-run unit cost curves: ma rginal cost (MC), average total cost (ATC), average variable cost (AVC) and average fixed cost (AFC). The short-run cost curves are normally based on a production function with one variable factor of production that displays first increasing and then decreasing marginal productivity. Increasing marginal productivity is associated with the negatively sloped portion of the marginal cost curve, while decreasing marginal productivity is associated with the positively sloped port

Has Affirmative Action had any positive results Should the policy be Essay

Has Affirmative Action had any positive results Should the policy be abandoned - Essay Example In the real sense, Bacchi (1996) indicates that the women and other marginalized groups are the most affected by discriminatory practices in organizations. It is in this light, as a result, that there is need to make sure that a proper rationale is effected to ensure that all persons in the workplace are handled as equally essential, and that all are represented well in the workplace. In addition, Crosby et al. (2006) are of the thought that, affirmative action allows for provision of equal opportunity of all persons, especially in terms of employment, promotion, and access to opportunities of attaining higher education. However, Fairclouch (2001) and Martin (2001) warn that it is vital to assess to what extent discrimination and bias prevails in an organization, and if promotion of equality is workable for all institutions. This is to mean that policy makers must be wary of this fact, and apply a proper guideline in the quest to provide equal treatment of all. This paper shall attem pt to assess if affirmative action has yielded any positive results, and if not, whether it would be advised to abandon the policy. Positives of the affirmative action With an increase in the groups championing for the rights of the minority groups, notable the girl-child and the persons with special needs, it is evident that though the world has not created a leveled playing ground for all the interested parties, the cases of discrimination have reduced greatly (Pincus, 2003). In the world today, the women for instance have been extremely vocal when it comes to them fighting for their rights in the law courts, government, and the social world amongst others. It is at this point of argument that we would argue that there has been a great change from the naive, apprehensive and misguided woman to the modern day woman. A good example is Tyra of the Tyra Banks Show. This is to mean that the women are slowly gaining a prestigious position in the society that was once overshadowed by the prowess of the men. From the work of Bacchi (1996), the ‘new’ woman can be accredited as a product of affirmative action in the society. Through this action, the women have been given opportunities in the government; they have also been consulted prior to making any form of decisions that touch on the society amongst other leadership roles. Despite the numerous debates on the move by women groups to claim position in the society; that they are indeed poor decision makers and are only fit for ‘odd’ jobs, it is evident through the women leaders that there is a great likelihood that women might completely take over in the society. In the argument of Rabe (2001), though affirmative action has been questioned on its ability to reduce discrimination among the races, a huge difference can be seen as compared to the earlier years. In fact, Rabe (2001) insists that affirmative action should not be abandoned on the basis of it not being able to shun all forms of dis crimination in the society. In the event that the affirmative action allows the black race improve their economic ability through leveling the employment protocols, it is possible that in the long run, the blacks will be accepted in the society (Rabe, 2001; Collins, 1993; Sitkoff, 1981). In his work, Rabe (2001) continues to argue that in the case of admission to universities, the affirmative a