Microeconomics itself, quite simply, if often defined as a branch of economic theory as the study of the behavior of individual economic agents, as opposed to individual economic agents in response to larger governmental structures. (Ruby, 2003) But in analyzing the effects of the EU and the homogenization of the German economy into a larger economic block, governmental analysis and the impact of the government upon competition is difficult to ignore
It also places a strong emphasis utilizing an active and competitive market to de-emphasize singular corporate control and to create more perfect and pluralist economic markets of competition, with certain exceptions such as the market for utilities. (Scott & Mondschean, 2002) This active and competitive pricing structure is thought to keep prices low and to ensure that consumer demand is responded to very quickly
This was to ensure everyone had an adequate supply of high-demand necessities, and that the highest-priority was given to troops for certain materials. Prince controls on limited-supply goods for consumers or goods critical to the war effort were instated to prevent price gouging, as price goes up as demand goes up, especially if goods are scarce (Tassava, 2008)
Specifically, the McDonald's menu across the globe contains the same categories of products, but specific products are eliminated or added based on local features. In India for instance, they do not sell beef; in Germany, they include beer in the menu; in Canada, they serve lobster; in Norway, they sell salmon; in Hong Kong they provide rice burgers (Adams, 2007)
Probably the most notable example in this sense is represented by the frozen fries which are imported and then sold. On the other hand, there are the items which are sold fresh, such as salads and vegetables, which are often purchased from suppliers within the local communities (Royle, 2000)
The most relevant example of resold items is represented by the beverages, which are purchased from other companies, such as PepsiCo. The items made by the firm are foods products, which can be classified into the following categories: Burgers and sandwiches Chicken products Breakfast items Salads Snacks and sides McCafe, and last Desserts and shakes (Website of the McDonald's Corporation, 2012)
The luxury cars do not make money by mass production rather by selling on premium prices. Here is the analysis of industry Cadillac serves in and a discussion of its market structure (Automotive Strategy, Planning & Analysis: IHS Automotive, 2013)
Efficacy of Oligopoly The oligopoly may be disliked by the new investors and entrepreneurs. The reason is that although they think the indusrty is profitable and they can make money by doing business in the industry, yet they cannot enter the industry easily (Comparing Market Structures, 2012)
However, this is favorable for the companies in the business. The structure is considered efficient since there are no price wars (De Lorenzo, 2013)
after GM marque Buick. The industry Cadillac operates in is highly lucrative and money making (SWOT analysis of General Motors, 2013)
However, "McDonald's executives say that promoting lower-priced items and products perceived as a good value will be a top priority this year, and restaurants may have to settle for lower profit margins. But McDonald's franchisees, who operate 80% of the company's outlets, say that's getting more difficult because of rising costs and mandates from the company to buy equipment" (Adamy 2009)
Adverse Selection Intermediate Microeconomics Got adverse selection? The poorer you are, the more you pay for milk (and healthy food in general) Got adverse selection? The poorer you are, the more you pay for milk (and healthy food in general) In economics, adverse selection is a "situation where sellers have information that buyers don't (or vice versa) about some aspect of product quality" (Adverse selection definition, 2001, Investopedia)
Despite the frequent complaints about high pricing at boutique grocery stores like Whole Foods, very often the prices in lower-income areas tend to be much higher. While it may be true that organic milk may be more costly at Whole Foods, a comparison of regular milk in more affluent and less affluent neighborhoods in New York City revealed that the same sizes and types of milk often cost more where people were relatively poorer (Lehrer 2007)
Despite the frequent complaints about high pricing at boutique grocery stores like Whole Foods, very often the prices in lower-income areas tend to be much higher. While it may be true that organic milk may be more costly at Whole Foods, a comparison of regular milk in more affluent and less affluent neighborhoods in New York City revealed that the same sizes and types of milk often cost more where people were relatively poorer (Lehrer 2007)
population, live in low-income neighborhoods that are more than a mile from a supermarket. Low-income neighborhoods are areas where more than 40% of the population has income less than or equal to 200% of the Federal poverty threshold ($44,000 per year for a family of four in 2008)" according to the census (Ploeg 2010)
75, while many neighborhood stores in more affluent neighborhoods charged as little as $1.05 per gallon (Odabashian 1998)
Several companies have come despite the government's intervention in issuing of licenses. The influx is alarming because controlling production of sub-standard goods become hard (Seybold, 2008)
It is known for its mHealth solution which is unique and has assisted several people. There was a case in Tanzania where text message based information enables the control of anti-malaria medical supply control (Woolley, 2001)
Today however, they are committed to selling more domestic products and this is supported by the increasing costs of foreign labor, the logistics efficiencies of selling American made items, as well as the availability of consumers to pay a premium price for U.S. made products (Berman, 2013)
2. The marginal decision rule holds that a firm should "expand product if and only if the price is greater than the marginal cost" (Baker, 2000)