Free Markets are Efficiency Essay Example | Topics and Well Written Essays - 2500 words

Free Markets are Efficiency - Essay Example In addition, the paper also focuses on the criticism and arguments surrounding the free market concept. The efficiency of free markets surrounds the effectiveness of an economy in the allocation of resources. The efficiency of a free market is dependant on satisfaction of several conditions that permit the agents in that economy to trade freely and attain the market equilibrium in quantity and price. For the purpose of this paper, a free market is one that has negligible government interference, or no such interference (Argelis & Pitelis, 2008: 1). With this in mind, we may define a free market as a market where the agents engage in selling and buying activities on own consent, without any legal compulsion. The prices at which a trade transaction takes place, or the quantities traded are not under control (direct or indirect) of third parties in the market. In essence, this implies that the market operates without legal restrictions or regulations. Simply, a free market is one where buyers decide freely the commodities to buy and their quantities at the prices of the sellers and sellers choose freely the commodities they are willing to manufacture and sell at their price that they decide to sell. The first welfare theorem or the invisible hand proposes that a free market provides a channel through which an economic system is able to reach the ideal level of production. According to Adam Smith in The Wealth of Nations, the different traders, like butchers and brewers, do not offer their services out of benevolence, but with a consideration of their own gains (Chang, 2002:5). Kenneth Arrow and Gerald Debreu later mathematically confirmed this theorem, indicating that in the event that all possible gains are exhausted from the exchange, then the free market attains an equilibrium equivalent to the Pareto efficiency in allocation of resources. In economics, the allocation of resources is Pareto efficient if there is no other feasible allocation preference by one pa rty, and which the other party equally likes, therefore making any further mutual benefiting allocation impossible (Hayek, 1945). For instance, party A and party B engage in a trade exchange. After several exchanges with emphasis on their level of endowment, party A and party B will reach a position on the curve (B and C), which is the Pareto optimal point of resource allocation (Lott, 2007: 82). The curve demonstrates the dual benefits of both parties for both reaching an equilibrium benefit of transfer and guiding the economy towards an outcome that observes the Pareto efficiency. Fig 1: Pareto optimality graph. From http://www.google.com/imgres?imgurl=http://pmbook.ce.cmu.edu/images/fig8_1.gif&imgrefurl=http://pmbook.ce.cmu.edu/08_construction_pricing_and_conctracting.html&usg=__d69xypDoP0EqqL9D0orgPd46Ezw=&h=399&w=404&sz=5&hl=en&start=3&sig2=s1ZXuuc1Dtp3tLmn-opTVA&zoom=1&tbnid=AORY7mH4F1EvoM:&tbnh=122&tbnw=124&ei=uZDpTrifAsqZiQfMnYWyBw&um=1&itbs=1 The Pareto-efficient outcome is only attainable on the certain conditions that are generally not applicable in practice, despite the mathematical proof by Kenneth Arrow and Gerald Debreu (Mankiw, 2009:153). These conditions include, but not limited to, imperfect competition like a monopoly, inevitable provision of public goods, presence of externalities, negligible transaction costs that are difficult to achieve, and social priorities that often favor a particular

Development of soft palate Essay Example for Free

Development of soft palate Essay Triangular area of hard palate anterior to incisive foramen Forms during 4th to 7th week of Gestation Two maxillary swellings merge and two medial nasal swelling fuse Formed by the fusion of medial nasal processes Secondary Palate- Remaining hard palate and all of soft palate Forms in 6th to 9th weeks of gestation Palatal shelves change from vertical to horizontal position and fuse Formed by fusion of maxillary process- Soft palate Is musculo-membranous curtain that separates the oropharynx from the oral space and the nasopharynx from the nasal space. It functions as flap valve closes off nasopharynx during swallowing. Its anterior margin is attached to the posterior border of hard palate by fibrous tissue known as palatal aponeurosis i. e. It is a collection of muscles with central aponeurosis. It Is continuous with the floor of the nasal cavity and covered with pseudo-stratlfled columnar ciliated epithelium and oral surface is covered by stratified squamous epithelium. Anatomic factors- The anatomy of the soft palate reveals a symmetrical and a radial distribution of the muscles and their fibers. The soft palate is part of a dual valve system which eparates the oropharynx from the oral space and the nasopharynx from the nasal space. The function of the soft palate in these dual valving actions requires freedom of movement in three dimensions or planes of space, i. e. , superoinferiorly, medlolaterally, and anteroposterlorly. A denture which contacts the soft palate then must conform to the requirements for freedom of movement of the palate. Therefore, an impression should be made when the soft palate is placed at a desired denture border position. This functional position of the soft palate may be achieved when the atient, seated in the upright position, flexes his head 30 degrees forward and places his tongue under tension against either the handle of the impression tray or the dentists finger which is held in the region of the upper maxillary incisors. The tongue should be retained in a state of tension within the arch form, and should not protrude beyond the lips. Neuropnyslologlc Tactors The soft palate as a component of an oropharyngeal valve may be considered as the analogue of the upper lip and the distal part of the dorsum of the tongue as the analogue of the lower lip. The soft palate and tongue thus contact and separate as hey protrude backward and forward to selectively permit food and air to pass the fauces for swallowing, speech, and respiration. The neurologic control for the valving action is mediated by the ninth and tenth cranial nerves for the palate and tongue (these nerves have both high somatic conscious and visceral automatic components) and by the twelfth cranial nerve which is dominated by the somatic conscious motor component. It is this latter phenomenon, wherein the rich conscious nerve control of the tongue muscles prevails, that makes it possible for the patient to respond to erbal and tactile stimuli to alter the position of the contiguous muscles of the soft palate. Even though there is a large proportion of visceral components in the ninth and tenth cranial nerves, it does not imply that the soft palate cannot be conditioned to respond appropriately to the denture which encroaches upon its environment. It merely suggests that more time may be required to condition the soft palate tissue to adapt to the presence of the denture which initiates a gag reflex. The physical stimuli of the denture base must be inhibited or suppressed so that the posterior border an become an extension of the patients biologic self in the same manner as the other borders. To facilitate the patients adjustment to the denture touching the soft palate, the border should be convex in contour on both the tongue and soft-palate sides. This recommendation is supported by Litvak, Silverman, and Garfinkels in a recent study wherein patients identified objects with many line angles in the mouth more readily than those with few line angles.

Essay --

1. Introduction As the world gets more global Companies do their best to raise their profits and survive in the competition. Companies may have to grow to survive, and one of the best ways to grow is by merging with another company. However, some merges may disbalance the development of market and disrupt the balance of current market structure. Perfect example is the Daimler and Chrysler merger it is such poweful global corporation that has its activities all around the world. It can use its strong position to influence the decisions of a government. If a government disagrees with the proposals, the corporation can easily move its bussines to another country this will lead to higher unemployment in the country so the government can not allow this and is forced to make a trade-off. Nowdays some corporations have bigger powers than some governments and therefore it is harder to resist the influence of the corporations. Mergers also lead to a decrease in competition in a market, this means higher pr ices and less choises for consumers. The European Union is trying to prevent that companies become too powerfull and that is why firms who seek to raise their profits through merger, must attain European commissions (EC) approval. In this paper I will focus on the Volvo/Scania merger case. Firstly I will explain what is merger, the benefits of firms to conduct merger and the effect of merger to market. Secondly I will briefly describe the two companies which are involved in the Volvo/Scania merger. Finally, I will explain why did the EC blocked this merger. 2. What is merger Merger is a process when at least two companies combine to form one single company. In general, there are three types of mergers, Horizontal Mergers, if both f... ...cks, buses and engines businesses. After selling its car division Volvo had nearly no market share, to become larger again Volvo decided to buy shares of his largest competitor Scania. (Case No COMP/M.1672 –Volvo/Scania) The merge between these two companies would cause a large decrease in competition on the Swedish market for trucks. Volvo wanted to grow to achieve the economies of scale to compete in the global markets, but Volvo was prevented from doing so because the merger would give them too large market share in Nordic market. 6. Conclusion The EC has blocked the proposed merger of Volvo and Scania because of the competition concerns. The main reason was that these two companies, which both make trucks and buses were the two largest competitors in most of their European markets, it would create significant barriers to entry the market by other companies.

Allied Office Products Essay

It seems that customers such as A are more profitable for Allied at the moment, using Service-Based-Costing. According to the service-based costing, Customer A achieved a 23.81% profit margin, while customer B achieved a profit margin of -.38%. Using the old system, where overhead was not charged to the customer; both customers achieved a 16.67% margin. However, it is important to note that if Allied could price their products better, Customer B may be more profitable in the long run, due to their wide use of Allied’s offerings and products. Yes, because it more effectively allocates overhead to each customer and shows the true profitability of each customer. Additionally, this kind of system could provide Allied the leverage and possibility of charging more for their products and being more profitable in the long-run. Service-based-pricing, in Allied’s case may not be too expensive to implement as evidenced by the relative ease that it took myself to allocate costs to each customer. Building SBP pricing into Allied’s invoicing system could prove to be profitable in the long-run and can establish the true profitability of their operations.   The TFC business seems to be an important part of the industry chain. However, Allied’s problem is that its customers seem to take advantage of them, and they seem to be at the back-end of the client’s concerns. Evidence to this is the amount of old inventory that sits in Allied’s warehouses that companies do not utilize. If Allied’s business offering was a more comprehensive document management system or they became at the forefront of the client’s concerns, they could potentially push through some pricing increases and gain some pricing power that way. Additionally, extra services like Desktop delivery end up costing their clients more than their apparent usefulness, especially given company B’s usage of only 26 of these per anum. Additionally, a more effective inventory control system, ie an  SAP solution to their accounting and distribution services, could make Allied more cost effective and eliminate the need for certain data-entry tasks. An online tool or RFID chip usage could greatly boost their business potential.

Britvic Case Study Essay

The marketing concept urges organizations to focus on the needs and wants of their customer. By following this concept the organization’s success can be achieved solely through customer satisfaction. In the case study we see that by identify the needs of the customer; a key characteristic in the marketing concept, Ralph Chapman acknowledged that the Great Depression in the UK meant that many of the poorest customers needed an affordable source of vitamin C. He found a way to bottle fruit juices so they stayed fresher for longer without the addition of preservatives, his juices were sold in small glass bottles that ensured easy transportation. This contributed to keeping the products cost effective. Customer satisfaction is another significant part of the marketing concept. Britvic has a constant flow of new product development; they plan on launching a new Tango variant called Tango Clear with no added sugar. They plan on marketing this to the older generation. They have understood a knish in the older market to meet customer satisfaction by supplying a healthier alternative to their original product, which was more brand appealing to children and teenagers. We can identify that by using the marketing concept Britvic’s core goals are meeting the consumers needs and wants to achieve full customer satisfaction and to sustain their title as the second most successful soft drinks supplier in the UK. Customers are central, we can see this in the case study when we look at the considerable amount of products they supply too approximately 20,0000 outlets across the country including all leading supermarkets, local shops, restaurants, pubs, hotels and cinemas. They are the leading drinks supplier to the licensed premises and have more soft drinks brands in their portfolio than any other UK manufacturer. This makes them so accessible to the consumer, and offers a large variety of different products to suit numerous markets

Custers Last Stand essays

Custer's Last Stand essays The name of "Custer" has become a byword. Today, when someone is involved in seemingly hopeless circumstances references to "Custer's Last Stand" might be made. On the surface, and even after some investigation, the case could be made that Custer was the victim of his own mistakes and recklessness. This case cannot be confirmed, only opinionized and acknowledged to be a possible conclusion. The case made here is one which notes that the men under Custer's command on June 25, 1876 failed him, and in failing him certainly doomed him. The purpose of this essay is not to slander the Indian nations with whom Custer fought against that day. The Sioux and other tribes were just defending there home. Treaties had been made with these Indians granting them the Dakota Territory and the region of the Black Hills forever. Treaties that white men drew up and signed gave them this land. In 1874 Gold was discovered in the region of the Black Hills, on Indian land. With the discovery of Gold, treaties were thrown aside and forgotten. The Indian nations whom Custer fought in 1876 were fighting to protect their lives, their families, and their land. The Government had indeed directed that all Indians move onto reservations by Jan. 31, 1876, or be deemed hostile. In their remote and scattered winter camps, it was likely that many Indian tribes did not receive these orders and could not have reached the government agencies with their women and children if they had. Custer and the United States Government were not in the right on June 25, 1876. Indeed, the whole Indian policy is a dark page in any history. If you read any sources on Custer he was either loved or hated. The governing powers in 1876 were no exception to this. General Sheridan admired Custer. President Grant, Benteen, and Reno did not. President Grant did not like Custer because Custer testified, in a court, to the corruption withi...

Discomfort and Discomfiture

Discomfort and Discomfiture Discomfort and Discomfiture Discomfort and Discomfiture By Maeve Maddox A reader asks, Can you explain the origin of the word discomfiture? This seems to be a recent invention; I was not coming across this word about 10 years ago. However, recently its use has increased. Is it the same as discomfort? Discomfiture is not as common a word as discomfort, but it has been used continuously in English since Chaucer’s day. Discomfort is a little earlier, dating from about 1350, when it meant â€Å"deprivation of happiness.† The earliest OED citations show discomfiture used with the meaning â€Å"defeat in battle.† Meanings that developed from there include â€Å"frustration of plans or hopes; utter disappointment; perplexity, confusion.† In time, the meaning weakened to include lesser emotions, such as unease, embarrassment, and similar-sounding discomfort. Although the words may be considered synonyms, discomfiture implies a stronger sense of unease and confusion than discomfort because it combines the connotation of both defeat and embarrassment. Even when defeat is not implied, discomfiture suggests a sense of agitation that discomfort lacks. I never was more completely whipped in a criminal case, and I always thought Judge Miller enjoyed my discomfiture more than anyone else. So terrible was his appearance that Spitz was forced to forego disciplining him; but to cover his own discomfiture he turned upon the inoffensive and wailing Billee and drove him to the confines of the camp. Tempting as it is, though, to smile at the courts discomfiture, the bigger issue here is whether the federal judiciary should be so actively engaged in the details of the electoral process.   Discomfort implies a sense of uneasiness, inconvenience, or mild physical pain. If you have a comfort zone, you must also have a discomfort zone.   Why Getting Comfortable With Discomfort Is Crucial To  Success About a dozen new teachers of criminal law at multiple institutions have told me that they are not including rape law in their courses, arguing that its not worth the risk of complaints of discomfort by students. If you experience any discomfort in your eye after doing an activity in which a small particle could have entered your eye, such as hammering or working under a car, don’t ignore it.   I would save discomfiture to describe the kind of discomfort that includes embarrassment on the part of the person feeling it. Want to improve your English in five minutes a day? Get a subscription and start receiving our writing tips and exercises daily! Keep learning! Browse the Vocabulary category, check our popular posts, or choose a related post below:Math or Maths?Expanded and ExtendedPresent Participle as Adjective