Thus, the Japanese are being more rational in their approach to bequests. Adam Smith is considered to be the father of rational choice theory, so he would view the selfish choice as the best one (Swatos, no date)
But there is no place in professional baseball for the world's thousandth-best shortstop. A successful doctor doesn't push other doctors out of the profession; a successful shortstop renders some other shortstop unnecessary" (Landsburg 2000)
The economic law of marginal productivity also means that the value of teachers will be lower than the value assigned to athletes: "When some item is widely available in abundance, such as water in most inhabited areas, the next unit acquired will be relatively inexpensive, the value applied to it by users will be low. If you don't take one gallon now, there will always be more where that came from" (McLaughlin 2007)
Further, they note that in a monopolistic competition, there is ease of exit from the market or entry into the market. This is in contrast to imperfect competition where we have the existence of quite a number of entry barriers (Hasek & Dodd, 2000)
The higher a price for a luxury car the greater the assumption of value, which also leads to more upward-driven elasticity and exclusivity as well. The price-quality relationships in automotive demand is evident in how easily the premium brands of BMW, Lexus, Maybach or Mercedes can easily raise prices and still achieve record financial results (Bajic, 1988)
Pricing Strategies for Optimal Profitability in the Auto Industry Defining the optimal pricing strategy for a given type of vehicle in a specific market, while also taking into account interest rates, cost of capital for dealers to finance their inventories, and consumer confidence requires an optimization-based approach to defining prices. The elasticity of demand in the industry is proportional to the microeconomic factors beyond control of the global manufacturers competing in this industry, yet is also defined by the frequency and innovation of new vehicle introductions, creativity in financing and leasing, and the willingness of manufacturers to allow for customization of vehicles during production (Cassel, McCormack, 1987)
Economic conditions that freeze capital and reduce the amount of credit available for prime borrowers can collapse entire segments of the auto industry relatively quickly. The last three years of the recession has constrained credit for high risk, first time buyers and as a result the demand curve for entry-level, low-end autos has resisted even the most aggressive pricing strategies to drive sales (Chu, Su, 2010)
Consumers then rely on more than just price to determine which vehicle to purchase, and it is more dictated more by which customer and psychographic segment they are members of (Visnic, Wielgat, Winter, 1998) and the effects of the dealer in defining pricing stability while influencing the purchasing decision (Cassel, McCormack, 1987). Favoritism or Ethnocentrism between Trade and Income in the Automobile Industry The globalization of the auto industry is being driven by the need to continually adjust and align production strategies, raw materials costs, and the development of more effective cost control programs over time (Kim, McCann, 2008)
These factors are explored in detail throughout this analysis. The continual improvement of these factors streamline and increases the value of the customer experience, thereby making demand even more elastic the higher the price of the vehicle (Wetzel, Hoffer, 1982)
On the other hand, demand when it comes to macroeconomics is largely dependent on the expectations of households coupled with the prices of all the products. Supply in this scenario is dictated upon by the cost of production (in total) and the expectations of producers (Hussain, 2010)
The Key/Main Differences between Microeconomics and Macroeconomics Derived from the word "micros" which is essentially a Greek name for "small," microeconomics' primary focus remains on small individual groups or units. Derived from the word "macros" which is a Greek term literally taken to mean "large" or "long," macroeconomics concentrates on the analysis of the aggregate economy (Mishra, 2010)
This implies that the monopolist faces a downward sloping demand implying that if the monopolist wants to sell more, it must reduce the price. In essence, a monopoly is signified by the lack of competition, which usually results in high prices and inferior product quality (Mankiw, 2011)
In numerous perspectives, it can be considered that the system is not functional when there is a monopoly; it is a market condition that lacks incentive to enhance it (market) to meet the consumer's demands. A significant element in monopolies is price discrimination; monopolistic companies undertake such restrictive practices with the sole intention of increasing the total amount of profits that they generate (Marshall, 2013)
The significance of these concepts in organizational success is the fact that they help understand how prices and quantities are established in a market system. Through supply and demand, a company examines both buyers and sellers with regards to their interactions (Mankiw, 2001)
Macroeconomic Measurements An organization's success is also affected by several macroeconomic measurements including Gross Domestic Product (GDP), inflation rates, unemployment rates, interest rates, and exchange rates. These various measurements are used in determining the production of goods and services as well as their flow in the market in a manner that is profitable to businesses (Tomlinson, n