MGT 501 SLP Essay Example | Topics and Well Written Essays - 750 words

MGT 501 SLP - Essay Example On the contrary, I was pleasantly surprised by my score in the quiz on African affairs. This is because I have not particularly taken a course to do with African affairs, and yet I got only one question wrong. 2.0 How Culturally Aware Am I? From my experience in dealing with people from various cultural backgrounds, I have learnt that I have strength in establishing mutually beneficial relationships with culturally different people. Sometimes, a person from a different cultural background and I can reach a mutual agreement on how to do something, even though we do not particularly hold the same views. Most of the times, this is achieved through compromise and an evaluation of which way best suits the situation, thus ascribing to the â€Å"my way and their way† form of cultural awareness (Gardenswartz & Rowe, 2001). In such cases, therefore, I chose to appreciate our cultural differences and not try to force similarities. This way, if the chosen way does not work, we can always resort to the way of the other culture, where possible. This has taught me that there is no single culture that has â€Å"one best way† of doing something (Gardenswartz & Rowe, 2001). Nonetheless, I recognise that I am not fully culturally aware. Although I recognise that there are different cultures, I am sometimes biased in passing cultural judgments on people. For example, I question the necessity of bowing to a senior person while greeting them, as the Chinese do. I sometimes think that such an action portrays inferiority on the part of the person doing the bowing. In addition, I am particularly judgmental of those cultures that, for example, still practice female circumcision in Africa. I question their beliefs and end up convinced that nothing could, in my culture, rationalise such practices. My primary step is devising ways of appreciating people, given that I am familiar with the fact that I am capable of building rapport with people from numerous cultures and I inte nd to build on that. Next in plan should be identifying the reasons why some persons from some cultural milieu conduct themselves in a specific way whilst others react to other situations in a different way. Later on, I should use my connections with persons from varied cultures to allow me to gain a clear understanding of their conduct and opinions. Consequently, I will get to a point where I am on recognisable terms with the fact that I have an approach of doing things, while a different person has their way of conducting themselves. I think I should first of all do more research, for instance, on why some Africans observe female genital mutilation, so as to evade my shortcoming in making judgment on the culture of other persons. I believe more research will allow me to be more knowledgeable of the reasons why female genital mutilation is such a critical ritual of passage. Secondly, I should endeavour to put myself in the situation of the person I criticise on the basis of their c ulture and see if I would have done anything in a different way, if I were the one in the alleged culture. 3.0 The Significance of Cultural Understanding to Managers It is fundamental in a managerial setting that managers increase their levels of cultural awareness, as this goes a great mile in determining the outcome of organisational activities. As Gardenswartz and Rowe (2001) put it, a manager may be required to pass information to employees, or to solve conflicts among employees. Since the workplace is

HIV in Humanitarian Contexts Essay Example | Topics and Well Written Essays - 2500 words

HIV in Humanitarian Contexts - Essay Example The outcome is the need to stop HIV and to assist those which are a threat to the health of others continues to increase while PLHIV treatments are in need of reaching larger groups of individuals (Smith, 2010). The need to approach this issue is one which is based on responding to emergency situations as well as considering the growing numbers of individuals who are in need of treatment that have PLHIV. The needs to assist those who have PLHIV are continuing to increase not only from the responses which are required to emergency situations or the spread of the disease in specific regions because of the lack of resources. It is also noted that there are humanitarian needs associated with various regions. The concept of humanitarian responses is one which is associated with responding to vulnerable groups and ensuring that resilience can be built in situations because of the services provided. The humanitarianism which is provided first takes place in emergency situations in which an outbreak or other problem arises. There are also some specific concepts which are linked to assisting vulnerable groups because of culture, available resources and service provisions which combine with food, education and sanitation methods (Okal, Bergmann, 2007). Examining the humanitarian methods and designs, gaps that are associated with the needs in various communities and the way in which these can be reconsidered develops a stronger understanding of what is needed to assist those suffering from PLHIV. This research study will examine the current status of humanitarian efforts, how this is creating changes or gaps in providing assistance for PLHIV as well as how different designs can create stronger responses to those who are suffering from PLHIV. By examining these various associations with humanitarian responses, there will be the ability to identify the gaps in assisting those with PLHIV as well as understanding how designs can be changed to assist communities in need of hum anitarian assistance. Methodology The methodology that will be used will consist of two main studies that will define the needs for those suffering from PLHIV and the humanitarian responses that are required. The first is a review of existing literature. This will examine various statistics from specific organizations which have designs and methods for assisting those who have PLHIV. This will also consist of other pertinent literature that is based on the current understanding of how to respond to outbreaks and what this means to those who are in specific settings. The research methodology will be combined with communication through questionnaires. This will be sent to offices in various regions around the globe. The objective of these questionnaires will be to look at the designs which are currently used to respond to PLHIV in various regions as well as what the strengths and weaknesses of the design are. By examining these various types of responses, conclusions can be drawn whic h relate to the gaps in designs which are used to respond to the needs of PLHIV in a humanitarian context. Special Needs of PLHIV in Humanitarian Contexts The first concept which is associated with PLHIV in human context is based on the vulnerabilities which are established in responding to specific needs. The risk for HIV is known to be a main factor in specific areas that lack infrastructure

Relationship Between Feminism And Fashion Cultural Studies Essay

Relationship Between Feminism And Fashion Cultural Studies Essay During this essay I am going to discuss fashion and feminism and the question, can you be a feminist and still be fashionable? I am going to discuss and compare different arguments on the relationship between feminism and fashion. When most people hear the word feminist they automatically draw up a conclusion of tough looking women with short hair, mannish clothes and no bra. The reality is any women can be a feminist whether a school teacher, business women, model or porn star. When feminism first came about during the nineteenth century the main focus was for equal rights for men and women. During this time feminists managed to grant the right for women to vote as well as getting more equal rights in education and the workplace. Although this wave was massively important in equal rights for women there was still a lot of issues unresolved, especially unofficial inequalities. This is where the second wave of feminism comes in. The second wave of feminism, beginning in the 1960s, was concerned with full social and economic equality. During this wave feminists encouraged women to look into aspects of their personal lives and the structure of power. The Feminine Mystique by Betty Friedan was and still is regarded as one of the most influential books of the 20th century paying great detail to suburban housewives and how unhappy they were, Each women thought she was alone, it was her personal guilt if she didnt have an orgasm waxing the family-room floorà ¢Ã¢â€š ¬Ã‚ ¦no matter how much she had wanted that husband, those children, that split level suburban house and the appliances thereof, which were supposed to be the limits of womens dreams in those years after World War II, she sometimes felt the longing for something more. (Friedan, 1963: Chapter 2) The last wave of feminism, the third wave, which started in the 1990s and still affects us today. This wave has two cultures, the first believes all advertisement, media, photography, showing women in a sexual way should be banned. The second believes women are allowed to wear what they want and act as they please and still be highly successful both in the home and workplace. Above is a photograph taken from a collection of photographs for an advertisement campaign by the designer Tom Ford from his Spring/Summer 2008 collection. Tom ford is known for his more provocative advertisement campaigns and for this particular campaign he collaborates with photographer Terry Richardson to feature a collection of photographs featuring both male and female models partaking in different activities, the majority of these done in the nude; more often than not it is the female models that are the naked ones whilst the men are fully clothed dressed in smart, dapper suits. In Italy these advertisements were actually banned for being sexually implicit (Eswaran, 2008)and the IAA (Italian Advertising Institute) said about them that they were Deeply vulgar and went beyond bad taste to actually offend the publics sensibilityà ¢Ã¢â€š ¬Ã‚ ¦it does beyond acceptable limits for advertising (Eswaran, 2008)and concluded by saying how the advertisements are an offensive gesture whic h insults women and the dignity of all.'(Eswaran, 2008) The photograph above shows a naked woman ironing a mans trousers, a typical household chore which is stereotyped as a womens job, whilst he stands around waiting for her to finish whilst reading a newspaper. When the advertisements first appeared it sparked a whole new debate on the misogynistic, hatred for women, representations of women. Feminists viewed the photographs as shocking and extremely sexist. Many a comment has also been made on how they represent the post feminism culture in which feminism acts have been weakened by popular culture such as fashion, music and the media. Figure Two. Tom Ford Advertisement S/S 2008 Above is another photograph from the same campaign in which a female model is made to look much like a blow up sex doll. It is also interesting to see how you cannot see her as a whole person, but just certain body parts, making her more to be an object than an actual human being. Now although these images were highly credited as being extremely sexist, one blogger stated how they hate the ones with the naked women being stared at by clothed menthat bothers me.'(Fairy glamour, 2008) and another stating that they are both tasteless and gratuitous (Edanya, 2008) they can also be looked upon in the eyes of the third wave of feminism in which women are allowed to wear what they want and act as they please and still be highly successful both in the home and workplace. Angela McRobbie backs up this idea but saying how feminist views are rather out-dated and the modern women enjoys the freedom of her sexuality and gets the joke (McRobbie, 2007: 33) seeing sexism as almost ironic. Whilst Natasha Walter author of Living Dolls: The return of sexism states that, Since the idea has taken hold that women and men are now equal throughout society, it is seen as unproblematic that women should be relentlessly encouraged to prioritise their sexual attractivenessà ¢Ã¢â€š ¬Ã‚ ¦this is a free choice by women who are in all other ways equal to men. (Walter, 2010: 119) Looking at Tom Fords Spring/Summer 2010 advertisement he has done much of the same thing showing a completely naked woman alongside a fully clothed man. The bad press around the 2008 campaign could not have affected him that much if he has gone on to do much of the same thing again. Maybe they are meant to be viewed as a light hearted tongue in cheek joke rather than a misogynistic representation of women. Figure Three. Dolce and Gabbana Advertisement S/S 2010 Above is the next image I am going to discuss, taken from the Dolce Gabbana Spring/Summer 2010 campaign featuring Madonna. The images, which were shot by photographer Steven Klein, are a series of photographs of the celebrity in a domestic setting carrying out daily tasks such a cleaning. A whole article on Madonna.com is dedicated to the photographs and the inspiration behind them. They talk about the campaign and the reason behind the choice of shoot, describing it as showing the iconic depictions of strong, tender and naturally beautiful women. (Milan, 2009) The article goes on to say, The intention of Dolce Gabbana is to recapture a womens human side, showcasing through these images how a womens femininity and sensuality can be found through the simplicity of daily gestures along with a passion for life. The new Dolce Gabbana campaign encourages a woman to cast aside fears of showcasing her femininity because it is where her true beauty resides. (Milan, 2009) Comments, made by Madonna fans, after the article read such things as really sensual and hot (Maverick78, 2009) and wow Madonna looks fabulous in the photograph a rustic charm (Lumb1, 2009). No one has seemed to have picked up on the fact that Madonna is in fact carrying out chores stereotyped to be a womens work and in fact appears to be representing everything feminism is against. This is because followers of fashion, whether a feminism or not are looking at the clothes she is wearing rather than the poses she is adapting. A caption from a website reads, Beautifully dressed and following the Italian family theme of the campaign, la Donna is giving her lowdown on how to wear unique tailored clothing at all occasions even the most unexpected ones. Indeed, you never know who will ring at the door while you are tidying up the house. Always prepared, always glamorous, as shown by Madonna, femininity and sensuality do not belong to specific time slots: it is a permanent state of dressing. (swide, 2010) Therefore it could be argued that, like the Tom Ford advertisement, this Dolce Gabbana one is simply a tongue in cheek take on feminism and the modern women, even taking Betty Friedans orgasm waxing the family-room floor (Friedan, 1963: Chapter 2) comment a little too literally. I am now going to move onto even more present day and the pop stars many of us idolise. Figure Four. Lady Gaga Telephone Video 2010 Figure Four. Lady Gaga Rolling Stone Cover 2010 Both of the above photographs are of current pop star Lady Gaga. Gaga is one of the biggest selling pop stars of the moment and idolised by girls, women, boys and men.The first photograph is a still from her music videoTelephone, official music video. The video starsthe pop star dancing around in not much clothing and acting provocative; parts of the video were in fact censored for more appropriate day time viewing. Gagas police caution tape costume, if you can call it that, was designed by L.A based designer Brian Lichtenberg. Although this costume can be viewed as shocking and shows women as more an object to stare at, an object of desire even to men, than a human being this outfit could also be seen as simply a way of self-expressionism. An interview between an editor of online Britannica encyclopedia and Philosopher Nancy Bauer talks about whether Gaga is in fact seen as a feminist figure. Bauer says of Gaga that, Lady Gaga strikes her fans as a liberating force: she seems to be able to transform what people ordinarily find oppressive into an opportunity for self-expression. You might say shes a specialist in the art of rack focus: she knows how to get a viewer to look at very familiar things in new and sometimes surprising ways. An obvious example is her outfitting herself in nothing but carefully placed police tape in the Telephone video. (Bauer 2010) Bauer also conducted an interview with Gaga herself who calls herself a bit of a feminist'(Bauer 2010) viewing feminists as a woman who is strong and powerful and has high self-esteem (Bauer 2010). The other photograph is from the cover of Rolling Stone magazine. This cover was shot by Terry Richardson, the man behind the Tom Ford 2008 advertisement campaign. Yet again she is dressed in next to nothing, looking very provocative. In the interview that accompanied the front cover she said in answer to one question that she considers herself to be a full on feminist. Bauer interpreted this as Gaga believing that one of being a feminist is to be a strong and powerful woman with high self-esteem is to talk brazenly and dress scantily, or at least in the way she does. (Bauer 2010) So in conclusion to my essay can you be a feminist and still be fashionable? I believe that you can. After all feminism is all about equal rights and women being able to be how they like and do as they please, being an individual. Fashion is an expression of individuality; it is the best way to show case to everyone around you that you are in fact an individual person. The models of the Tom Ford campaign, Madonna and Lady Gaga have not been told to act or dress that way they have chosen to do it, free will. After all fashion is a pleasure, and, I agree with Natasha Walter when she said that, Adult women were now free to choose to embrace aspects of femininity that second wave feminists had once seen as coercive, such as high heels and make-up (Walter, 2010: 129)

Children and Eating Disorders Essays -- Anorexia Bulimia Weight Essays

Children and Eating Disorders In the past few decades researchers have focused on eating disorders, the causes of these disorders and how they can be treated. However, it has mainly been in the last decade that researchers have started looking at eating disorders in children, the reasons why these disorders are developing at such a young age, and the best recovery program for these young people. To understand this growing problem it is necessary to ask a few important questions: Is there a relationship between family context and parental input and eating disorders? What effect do mothers who suffer or have suffered from an eating disorder have on their children and specifically their daughters’ eating patterns? What is the best way to treat children with eating disorders? TYPES OF CHILDHOOD EATING DISORDERS In an article focusing on an overall description of eating disorders in children, by Bryant-Waugh and Lask (1995), they claim that in childhood there appears to be some variants on the two most common eating disorders found in adults, anorexia nervosa and bulimia nervosa. These disorders include selective eating, food avoidance emotional disorder, and pervasive refusal syndrome. Because so many of the children do not fit all of the requirements for anorexia nervosa, bulimia nervosa, and eating disorder not otherwise specified, they created a general definition which includes all eating disorders, "a disorder of childhood in which there is an excessive preoccupation with weight or shape, and/or food intake, and accompanied by grossly inadequate, irregular or chaotic food intake" (Byant-Waugh and Lask, 1995). Furthermore they created a more practical diagnostic criteria for childhood onset anorexia nervosa as: (a)... ... and Allied Disciplines 36 (3), 191-202. Edmunds H., Hill AJ. (1999). Dieting and the family context of eating in young adolescent children. International Jounal of Eating Disorders 25(4), 435-40. Kreipe RE. (1995). Eating disorders among children and adolescents. Pediatrics in Review, 16(10), 370-9. Lunt P., Carosella N., Yager J. (1989) Daughters whose mothers have anorexia nervosa: a pilot study of three adolescents. Psychiatric Medicine, 7(3), 101-10. Marchi M., Cohen P. (1990). Early childhood eating behaviors and adolescent eating disorders. Journal of the American Academy of Child and Adolescent Psychiatry, 29(1), 112-7. Smolak L., Levine MP., Schermer R. (1999). Parental input and weight concerns among elementary school children. International Journal of Eating Disorders, 25(3), 263- 71.

King Henry VIII and the Reformation Essay

For many years leading up to the reign of King Henry VIII, zealous souls were searching more than ever for a meaningful faith-based life for themselves and all of society. The people of England were becoming more and more confused about what the Church actually taught and were developing skeptical feelings towards the spiritual and physical power used and displayed by the clergy. [1] These feelings of the English people were reaching an all time high around the time that Henry VIII had succeeded his father’s throne in 1509. King Henry VIII had mostly selfish and prideful incentives to separate from the Roman Catholic Church. He had no religious intent in mind, but little did he know that he would contribute to the rise of the Protestant Reformation and a long-term religious change in England that would eventually spread to the rest of the world. [3] The dissatisfaction with the corruption of the Church and hunger for change led to the ideas of Christian humanism and the influence of Greek learning. This idea portrayed an order of peace, justice, and humanity that could be taught and advanced through education. ] The humanist with the greatest influence of the time was Erasmus of Rotterdam who favored simple biblical piety founded on textual scholarship and study of the Greek New Testament over scholasticism and elaborate ritualism. [5] Erasmus believed in studying and understanding the scriptures for oneself and wanted to reveal the extreme hypocrisies of the Church. Erasmus’ radical writings and teachings began to spread, and soon after the writings and teachings of Thomas More and Martin Luther arose. More wrote the book Utopia which described an idealized society that lived in an uncorrupted world in perfect accordance with the principles of natural virtue. [6] This was a completely unrealistic idea, but it still gave hope to the people for a reform and a better society. Around 1517, Martin Luther created a real reaction and uproar from the people as his ideas rapidly spread against the practices and underlying rationale of the Church. [7] This created an uprising and following of Luther’s teachings as his ideas and books quickly spread throughout England. Luther’s ground breaking concepts encouraged â€Å"new learning† and it soon took hold on the University of Cambridge. [8] When word of the vastness of Luther’s teachings and all of the new ideas of change and reform against the church reached King Henry the VIII, he was livid. In 1521, he excommunicated Luther and ordered all Christian princes to â€Å"suppress his errors† that Luther and others had spread. [9] Sermons were preached all across Europe denouncing Luther and many of his books were burned. King Henry went as far as to write an essay opposing Luther and his views on the Eucharist and the pope awarded him with the great title â€Å"Defender of the Faith. †[10] Even though King Henry tried his best to stop Luther and his ideas, Luther soon earned his voice in Germany and hundreds of his books and pamphlets poured back into England with even more criticisms of the Church’s practices and leaders. [11] Soon many revolts broke out between 1524 and 1526 dubbed the Peasants’ War, and the Protestant Reformation was flooding in. This was the start to a violent political, spiritual, and social struggle between the advocates and the enemies of change in England that lasted for many years. English men and women began to think of themselves as â€Å"Catholic† or â€Å"Protestant† and separated themselves accordingly. [13] Catholics and evangelicals protested and condemned each other from the pulpit and through printed writings. [14] Change was definitely in the air. In the midst of all of the uprisings against the Church and songs of reformation, King Henry VIII developed his own personal problems and turmoil. King Henry had been happily married to  Catherine of Aragon until he realized that she was not producing him a male heir that he longed for. The King had met and fallen in love with a woman named Ann Boleyn who was a strong, intelligent, and determined woman. Henry was determined to marry her and try to produce a son for a male heir to the throne. [15] In order to divorce Catherine, Henry needed a special papal dispensation. The pope refused to grant it, and Henry suspected that because the pope was related to the King of Spain that they were undermining England in the favor of Spain and therefore denying him the right to an heir. After many attempts to get the popes permission for the divorce and approval to marry Ann with no success, King Henry VIII made a decision that would change history forever. Henry fired his closest advisor Cardinal Wolsey who was Lord Chancellor of England and replaced him with Thomas Cranmer and Thomas Cromwell. [17] These two men advised the King to split the English church off from the Roman church in order to become head of the church and gain the marriage that he desired. This idea began the years of the Reformation Parliament in which the English parliament granted powers over the church clergy to the King in stages. The Act of Appeals in 1533 made Henry VIII the source for all English jurisdictions both secular and religious, and then the Act of Supremacy in 1534 declared the King of England as supreme head of the Church of England, not the pope. [18] Another act was passed in 1534 called the Act of Succession, which declared the children of Ann Boleyn as rightful heirs to the throne. [19] It was now official; England was completely isolated and broken away from the Roman church and began their independent journey of the Church of England. Even though England had split off from the Roman church and was on the brink of reformation, King Henry VIII made virtually no changes in the Church of England. [20] The only major difference from the Catholic Church was that now the king was the head instead of the pope and English Bibles were being used. [21] King Henry VIII reaffirmed his commitment to Catholic practices by passing the Six Articles. The Six Articles validated the transformation of the Eucharist, confession, private masses, celibate vows, and the sanctity of the Eucharist cup. Despite the fact that King Henry had made no real changes to the church, his break from the Roman Church stirred up a revolution in the making. Ann did not produce a son for King Henry, but she provided him with another daughter named Elizabeth. [23] Ann was sympathetic with Protestant ideas and her daughter would eventually play a key role in Protestant England. [24] King Henry became displeased with Ann, accused her of adultery, and had her beheaded in 1536. [25] Still in search of a son, King Henry VIII married Jane Seymour. She finally gave him the son and heir to the throne that he had been hoping for, Edward IV. When Henry VIII died in 1547, Edward IV succeeded the throne and the Protestant movement grew stronger than ever. Edward was highly intelligent and a devout Protestant, and he wanted to make numerous changes to the Church of England. [27] He repealed the Six Articles, allowed clergy to marry, and imposed Cranmer’s Book of Common Prayer on all church services. [28] England was on its way to becoming a Protestant country, but King Edward died tragically of tuberculosis at age sixteen. Catherine of Aragon’s daughter Mary I then came to the throne in 1553. She was an extreme Catholic with no tolerance for Protestant beliefs. She declared England to be a Catholic country and converted all churches back to traditional Catholic practices. [30] The people of England were becoming thoroughly confused in their beliefs because they were getting tossed back and forth between two opposite ideals. Mary I soon earned the nickname â€Å"Bloody Mary† because she was single-handedly responsible for the executions of many Protestant leaders. [31] She burned more than three hundred men and women at the stake for their unwillingness to give up the ways of the Church of England and turn to the Catholic Church. These executions did nothing but intensify an anti-Catholic feeling in England, and it would soon become a permanent concept. After Mary I’s death in 1558, England’s future was in the hands of Henry VIII’s last surviving child, Elizabeth I. She was exactly was England needed at the time and was extremely intelligent and cautious. [33] She is considered to be one of the greatest monarchs in the history of England. Elizabeth repealed Mary I’s Catholic legislation for she understood that her country was being torn apart by the wavering doctrines, and she wanted to bring an end to the disunity. She worked out a compromise known today as the â€Å"Elizabethan Settlement† which resulted in a church that retained some Catholic ideas while inserting most of the foundational ideas of Protestantism as well. [34] This settlement would not have been possible if it were not for Henry VIII’s original split from the Catholic Church. The people were ready for the religious strife to end and peaceful worship to be possible. Even though Elizabeth had sought a peaceful compromise, the Catholics rose up in rebellion against her. [35] As they threatened her throne and plotted against her, she intelligently dodged their plan to destroy her. From this point on, her religious tolerance came to an end, and Catholics were arrested, imprisoned, and heavily fined. [36] Elizabeth ruled on to lead England in the defeat of the Spanish Armada in 1588. [37] This was a great turning point in history that not only made England a respected military power, but also solidified the movement of the Protestant Reformation. If Spain had not been defeated, there is a good chance that the Protestant religion would have been crushed altogether. [38] The Protestant breakthrough was a result of feelings of disdain and discontent with the Church that had been building over time. The Englishmen were feeling resentment against the corruption, and a confidence that a change was possible grew. The vulnerability of the many people who desired this change was key in the wide spread of many revolutionary ideas such as Erasmus, More, and Luther. All of these factors intertwined with the times and rule of King Henry VIII; and as you can see, his decision to break away from the Roman Catholic Church created a spiral of events that became the very segue the reformers needed to have a spiritual breakthrough. His pride, stubborn attitude, and desire for an heir to his throne led him into a decision that resulted in an extraordinary spiritual affect. Even though King Henry was a devout Catholic who in no way supported Protestant ideas, his very decision helped to bring about the Protestant Reformation. King Henry VIII in all of his selfish, prideful, and stubborn ways was exactly what England needed to push it over the edge and into a flood of a reformation. When King Henry VIII made the official split from the Roman Catholic Church, he made a decision that would affect the rest of history. Bibliography http://www.kencollins.com/poll-02.htm

Costs, perfect competition, monopolies, monopolistic competition Essay

* Total Cost = market value of inputs firm uses in production * Profit = TR – TC * Costs of production = opportunity costs of output of goods and services * Explicit costs = input costs that require outlay of money by firm * i. e. $1000 spent on flour = opportunity cost of $1000 because can’t be spent elsewhere * Implicit costs = input costs that do not require outlay of money by firm * i. e. working as baker at $10/hour, but could be making $20/hour as a computer analyst * Economists include both costs, while accountants often ignore implicit costs * Important implicit cost = opportunity cost of capital. * i. e. use $300,000 savings to buy factory, but could have invested it at interest rate of 5%/year * ? forgone $15,000/year in interest income = implicit opportunity cost of business * i. e. use $100,000 savings and borrow $200,000 from bank * Explicit cost will now include $10,000 paid to bank in interest * Opportunity cost is still $15,000 (OC of $10,000 paid to bank is $10,000 and there is a forgone interest savings of $5000) * Economic profit = TR – TC (including both explicit and implicit costs) * Accounting profit = TR – TEC (total explicit costs). * Consequently, accounting profit is often > economic profit * For economist, business is only profitable if it can cover all explicit and implicit costs Production & Costs * In short run = size of factory is fixed because it cannot be built overnight, but output can be varied by varying the number of workers * In long run = size of factory and number of workers can be varied * Production function: relationship b/w quantity of inputs used to make a good and the quantity of output of that good (short-run) * Marginal product = increase in output that arises from additional unit of input * MP = ? TP/? Q * Law of diminishing marginal product = property whereby the marginal product of an input declines as the quantity of the input increases * Slope of production function (quantity of input vs. quantity of output) = marginal product * Graph become â€Å"flatter† as marginal product decreases (see graph) * Total cost curve = graph w/ quantity produced on x-axis and total cost on y-axis * Graph becomes â€Å"steeper† as quantity of output increases (see graph). * Fixed costs = costs that do not vary with quantity of output produced * i.e. rent of factory, bookkeeper’s salary etc. * Variable costs = costs that do vary with the quantity of output produced * i. e. cost of raw materials, wages of workers (increases as more output produced) etc. * Average Total Cost = TC/Q * Also equal to average fixed cost + average variable cost * Average fixed cost = FC/Q * Average variable cost = VC/Q * Marginal cost = increase in total cost arising from an extra unit of production * MC = ? TC/? Q * Marginal cost rises as the quantity of output produced rises (see graph) Typical Cost Curves * In many firms, MP does not start to diminish immediately after hiring 1st worker * 2nd or 3rd worker may actually have higher MP than first, b/c a team of workers can divide tasks and work more productively than a single worker * AFC, AVC, MC, and ATC will look different for this scenario Costs in the Short Run and in the Long Run. * Division of total cost between fixed and variable costs depends on time horizon * In a few months, GM cannot adjust number/size of factories, only workers * Cost of factories, is therefore, fixed cost in short run * Over several years, however, GM can expand size and number of factories * Cost of factories, is therefore, variable cost in long run * Because fixed costs become variable in the long run, the ATC curve in short run differs from the ATC curve in the long-run * Long-run ATC is much flatter than short-run ATC * Short-run curves also lie on or above long-run curves. * Properties arise because firms have greater flexibility in the long run – can choose which short-run curve they wish to use * In short-run, b/c of diminishing marginal product, increasing quantity of output increases ATC * In long-run, there are situations where ATC does not change with an increase in output * Constant Returns to Scale: long-run ATC stays same as quantity of output changes * Diseconomies of Scale: long-run ATC rises as quantity of output increases . * Often arises because in large organizations, coordination problems arise – difficult to organize and mobilize vast amounts of labour and raw materials * Economies of Scale: long-run ATC falls as quantity of output increases * Often arises because at higher production levels, workers can specialize * Analysis explains why long-run ATC curves are often U-Shaped * Long-run ATC falls at low levels of production b/c of increasing specialization, and rises at high levels of production b/c of increasing coordination problems What is a competitive market? * Perfectly competitive market has two characteristics: (1) many buyers and many sellers in the market, (2) goods offered by various sellers are largely the same * Goal of perfectly competitive markets is to maximize profits * Actions of any single buyer or seller in market has negligible impact on market price * Each buyer and seller takes market price as given * i. e. no single buyer of milk can influence the price of milk because the buyer purchases a small amount relative to the size of the market * Each seller of milk also as little influence on price of milk, because it is selling milk that is virtually identical to the milk of other sellers. * B/c they must accept market price, buyers and sellers in competitive market = â€Å"price takers† * i. e.if a dairy farm doubles its output of milk, the price of milk remains the same, but their total revenue will double * Total revenue will increase because increase in quantity sold, not increase in price * Sometimes, (3) characteristic of competitive market also used – firms can freely enter or exit the market in the long run * Average revenue = total revenue/quantity sold. * AR = TR/Q * For all firms, average revenue equals the price of the good * Marginal revenue= change in total revenue from an additional unit sold * MR = ? TR/? Q * For all competitive firms, marginal revenue equals the price of the good Three general rules of profit-maximization: * If MR > MC, firm should increase its output * If MR < MC, firm should decrease its output * At the profit-maximizing level of output, MR = MC * Remember, because a competitive firm is a price taker, its MR is equal to the market price Note: In essence, because the firm’s marginal-cost curve determines the quantity of the good the firm is willing to supply at any price, it is the competitive firm’s supply curve Firm’s Short-Run Decision to Shut Down * Shut-down refers to short-run decision to not produce anything during a specific period of time b/c of current market conditions. * Exit refers to a long-run decision to leave the market * Firm that shuts down temporarily still has to pay fixed costs, whereas a firm that exits the market saves fixed costs and variable costs * i. e.if farmer decides not to produce crops one season, rent for land becomes sunk cost, but if farmer decides to sell farm altogether, no sunk costs * Firm shuts down if total revenue from production is less than its variable costs of production * Shut down if TR < VC * Alternatively, shut down if TR/Q < VC/Q . * Which means, shut down if P < AVC * On graph, if market price is less than minimum point on AVC curve, firm shuts down and ceases production – firm can re-open if market price changes to be higher than minimum point * Therefore, point at which MC intersects AVC is the â€Å"shutdown price† * If a firm shuts down temporarily, its fixed costs are sunk costs * Firm can safely ignore these costs when deciding how much to produce * i. e. why don’t many restaurants close down at lunch time when they are nearly empty? * Because the fixed costs (rent, kitchen equipment, plates, silverware etc. ) would still have to be paid, only the variable costs (cost of additional food and wages to stuff) would be saved * Owner can make enough profit to cover these variable costs, and therefore, keeps the restaurant open Firm’s Long-Run Decision to Exit or Enter a Market * The firm exits the market if the revenue it would get from producing is less than its total costs * Exit of TR < TC * Alternatively, exit if TR/Q < TC/Q * Which means, exit if P < ATC and enter if P > ATC * Therefore, point at which MC intersects ATC is the â€Å"exit/entry price† Measuring Profits from Graphs * Recall, Profit = TR – TC. * Alternatively, Profit = (TR/Q – TC/Q) x Q * Which means, Profit = (P – ATC) x Q The Supply Curve in a Competitive Market * So far we have examined supply decision of single firm – now examining supply curve of market * Two possibilities – short term = fixed number of firms, long term = firms can enter and exit The Short-Run: Market Supply with a Fixed Number of Firms * In short-run, the number of firms in the market is fixed * As a result, the market supply curve reflects the individual firms’ marginal-cost curves, only with increased magnitude (both graphs same, but market quantity multiplied by some scalar value) The Long-Run: Market Supply with Entry and Exit. * Assume all firms and all potential firms have same cost curves * If firms already in market are profitable, new firms will have incentive to enter the market * Entry if P >ATC because profit is positive (recall, Profit = (P – ATC) x Q) * Entry = expand # of firms, increase quantity of good supplied, and drive down prices and profits * If firms already in market are experiencing losses, firms may exit the market * Exit if P < ATC because profit is negative * Exit = decrease # of firms, decrease quantity of good supplied, and drive up prices and profits * At the end of this process of entry and exist, firms that remain the market must be making zero economic profit * In other words, the process of entry and exist ends only when price and average total cost are driven to equality (P = ATC). * This has a surprising implication—we earlier noticed that firms produce so that P = MC * We just noted that free entry and exist forced P = ATC * The only way this can occur is of MC = ATC, and this occurs only when the firm is operating at the minimum of average total cost—called the â€Å"efficient scale† * ? long-run equilibrium of a competitive market with free entry and exit must have firms operating at their efficient scale * Long-run supply curve (market) will be horizontal at the price which corresponds to the minimum of average total cost * Any P above this level generates profit, leading to entry and increase in total quantity supplied * Any P (price) below this level creates losses, leading to exit + decrease in total quantity supplied * Eventually, number of firms in market adjusts so P = minimum of ATC, and there are enough firms to satisfy all the demand at this price Why do competitive firms stay in business if they make zero profit? * Remember that economic profits are not the same as accounting profits * Economic profit accounts for opportunity cost as well * So, when a firm makes zero economic profit, it may still be making accounting profits A Shift in Demand in the Short Run and Long Run * Because firms can enter and exit more easily in the long run than in the short run, the long-run supply curve is typically more elastic than the short-run supply curve Chapter 15: Monopoly Why Monopolies Arise. * Firm is monopoly if it is sole seller of its product and if its product has no close substitutes * Case of monopoly is barriers to entry: a monopoly remains only seller in a market because other firms cannot enter market and compete with it * Barriers to entry are monopoly resources, government-created monopolies, and natural monopolies Monopoly Resources. * Single firm owns a key resource * i. e. only one well in town and no way to get water from anywhere else * Rarely occurs because economies are large and resourced owned by many people Government-Created Monopolies * Government gives one person or firm exclusive right to sell good or service * Two important examples are patent and copyright laws * Both lead to higher prices than under competition, but encourage desirable behaviour * Drug companies allowed patents to encourage research, and authors allowed copyrights so they write more original books * Monopoly = increased incentive for creative activity, but at a higher cost Natural Monopolies. * Single firm can supply good or service to entire market at lower cost than could 2 or more firms * Occurs when firm has economies of scale over relevant range of output * In other words, firm’s ATC curve continually declines because when production is divided among more firms, each firm produces less, and ATC rises – single firm can produce as smallest cost * i. e. to provide water to town, firm must build network of water pipes – if two firms involved, both would have to pay fixed cost of water pipe, resulting in increased ATC. * Natural monopoly = less concern about new entrants * Normal monopoly’s profits attract entrants to market, but in a natural monopoly, new entrants cannot achieve same low costs that monopolist enjoys * If a market expands (greater demand) natural monopoly can evolve into competitive market Monopoly vs. Competition. * Monopoly can influence market price of output, while competitive firm cannot * As monopoly is sole producer in market, it can alter price of good by adjusting supply to market * Demand curve for competitive market is perfectly elastic (can sell as little or as much as it wants at one price), while down-ward sloping for monopoly * ? monopoly has to accept lower price to sell more output, and can only accept higher price by selling less output – so what price and quantity will it choose to maximize profits? Monopoly’s Revenue * AR = price of good (true for monopoly and competitive), but MR is not equal to price of good. * As a result, average-revenue curve is also monopolist’s demand curve * When monopolist increases quantity sold, has two effects on total revenue (P x Q): 1) the output effect = more output sold, so Q is higher, which trends to increase total revenue 2) the price effect = price falls, so P is lower, which tends to decrease total revenue * Competitive firm as no price effects – price taker, therefore can sell as little or as much as it wants, without any change in price * ? Output/price effect causes monopolist’s MR after first unit sold to always be less than price of the good * Consequently, monopoly’s marginal-revenue curve always lies below its demand curve Profit Maximization * Profit-maximizing quantity of output as determined by intersection of MR and MC curve * Some key differences between monopolies and competitive firms: * P = MR = MC (competitive). * P > MR = MC * In competitive markets, price equals marginal cost, and in monopolized markets, price exceeds marginal cost – crucial to understanding the social cost of monopoly Monopoly’s Profits * Recall, Profit = TR – TC * Alternatively, Profit = (TR/Q – TC/Q) x Q * Which means, Profit = (P – ATC) x Q * Same as in competitive markets Monopoly Drugs vs. Generic Drugs * What happens to price of a drug with patent runs out? * Monopoly firm maximizes profit by producing quantity at which MR = MC, and charging price well above MC * Therefore, when patent runs out, the price of the good falls to MC * Note: MC for drugs is almost always constant. * Monopolist does not lose all market, however, because many buyers remain loyal to brand-name, and therefore, brand-name can still sell at slightly higher price than â€Å"generic brands† Welfare Cost of Monopoly * Monopolies = higher prices than competitive firms = undesirable for consumers = desirable for producers in terms of total revenue * Is it possible that monopoly is desirable from the standpoint of society as a whole? * Recall total surplus measures well-being of buyers and sellers in a market * Producer surplus is amount producers receive for a good – (minus) their costs of producing it * Consumer surplus is consumers’ willingness to pay for a good – amount they actually pay for it * In this case, single producer is monopolist The Deadweight Loss * Consider case of a â€Å"benevolent social planner†. * Social planner care not only about profit earned by firm’s owners, but also benefits received by the firm’s consumers * Planner tries to maximize total surplus, which is producer surplus (profit) plus consumer surplus * Alternatively, value of good to consumers – costs of making the good to monopoly producer * Demand curve reflects value of good to consumers *. Marginal cost curve reflects cost to the monopolist * Consequently, the socially efficient quantity is found were the demand curve and marginal-cost curve intersect * If social planner were running the monopoly, he would achieve efficient outcome by charging the price found at the intersection of demand curve (AR-curve) and the MC curve – much like a competitive market * However, monopolists charge the price found at the intersection of the MC and MR curve * ? the monopolist produces less than the socially efficient quantity of output, and charges more than the socially efficient price * When the monopolist charges a price higher than the marginal cost, some potential consumers value the good higher than the MC but lower than the monopolist’s price * Consumers do not buy the good, and monopoly pricing prevents mutually beneficial trade * The deadweight loss triangle = total surplus lost = reduction in economic well-being from monopoly Is Deadweight Loss a Social Problem? * Not necessarily a problem for society * Welfare in monopolized market includes welfare or both consumers and producers * When a consumer pays extra dollar to producer because of monopoly price, consumer is worse off by a dollar, and producer is better off by same amount * Transfer from consumer to producer does not affect total surplus—sum of consumer and producer surplus * Unless, consumers are for some reason more deserving than producers—a normative judgement about equity that goes beyond realm of economic efficiency. * Problem arises because firm produces and sells a quantity of output below the level that maximizes total surplus Price Discrimination * Business practice of selling the same good at different prices to different consumers * Can occur in a monopoly (firm with market power), not in a competitive market * In competitive market, many firms selling same good at market price—no one would lower market price for any customer as they can sell any given quantity at one price * Increasing price would also be pointless, as customer would simply buy from another firm A Parable about Pricing. * Dry-cleaning example from class – charge adults $10 and charge students $5 with a stdent card * Choosing to forgo market of students at $5 results in deadweight loss because students do not end up putting their shirts into dry-cleaning, though they value the service more than its MC of production * With price-discrimination, however, everyone ends up with a shirt . * Price discrimination can eliminate the inefficiency inherent in monopoly pricing, because differentiating prices allows producer to charge customer price closer to customer’s willingness to pay than is possible with a single price Notes about Price-Discrimination * Monopolist must be able to separate customers according to willingness to pay—either geographically, by age, by income etc. * Arbitrage prevents price-discrimination – process of buying good in one market at a low price and selling it in another market for a higher price * Increased welfare from price-discrimination is all higher producer surplus, not consumer surplus * Adults/students no better off from having cleaned shirts—paid price they were willing to pay * Entire increase in total surplus is a result of higher profits for the monopolist The Analytics of Price Discrimination. Perfect price discrimination = situation in which a monopolist knows exactly the willingness to pay of each customer and can charge each customer different prices accordingly * Monopolist gets the enter surplus in every transaction * Also sometimes referred to as first-degree price discrimination * Refer to diagrams (a) and (b). * (a) firm charges single price above MC, and b/c some potential customer who values good at more than MC does not buy it at this high price, monopoly causes deadweight loss * (b) each customer who values good at more than MC buys good and is charged willingness to pay – mutually beneficial trade takes place, no deadweight loss, and entire surplus derived from market goes to monopoly producer in form of profit * Of course, in real life, price discrimination is never perfect because various customers are willing to pay various different prices – two forms of imperfect price discrimination . * 1) second-degree price discrimination = charging different prices to same customer depending on quantity of product bought * 2) third-degree price discrimination = market can be segmented and segments have different elasticities of demand * i. e. movie theatres charge lower price for children and senior citizens than for other patrons * Makes little sense in a competitive market, where price = MC, and MC for providing seat to child/senior citizen is same as anyone else. * If movie theatre has local monopoly, however, price-discrimination has motives * Demand curve for adults is less elastic, therefore can charge higher price, whereas demand curve for children/seniors is more elastic, therefore can charge lower price * How does imperfect price discrimination affect welfare? * Compared to monopoly outcome with single price, imperfect price discrimination can raise, lower, or leave unchanged total surplus in a market—however, always raises monopoly’s profits Examples of Price Discrimination * Airline Prices – charge less if stay over Saturday night or purchase two weeks ahead to separate personal travellers, from business travellers, who pay more * Discount Coupons – rich, busy executive will not clip coupons, whereas a unemployed individual will, allowing price discrimination * Financial Aid – separate wealthy students willing to pay high tuition from less well-off students * Quantity Discounts – bulk is cheaper because customer’s willingness to pay for an additional unit declines as the customer buys more units Public Policy towards Monopolies. * Monopolies fail to allocate resources efficiently * Produce less than socially desirable quantity of output * Charge prices above marginal cost Policymaker’s Response * Increasing Competition with Competition Law – for example, mergers * Regulation – natural monopolies not allowed charging whatever price they want, but what price should government set of a natural monopoly? * One might conclude set P = MC, so customers equal quantity of output that maximizes total surplus, and allocation of resources is efficient * However, natural monopolies always have declining ATC ? MC < ATC, if P = MC, then P < ATC, and firm loses money and exits industry * Government can subsidize monopolist and pick up losses inherent to MC-pricing, but would need to raise money through taxation for subsidy, and taxes have own deadweight loss * Alternatively, regulators can allow monopolist to charge price higher than MC, and if regulated P equals ATC, monopolist earns exactly zero economic profit * Yet, average-cost pricing leads to deadweight losses b/c monopolist’s price no longer reflects MC or producing good * Ultimate problem with MC- and AC-pricing is it gives monopolist no incentive to reduce costs—normally reduce costs to increase profits, but in these cases, monopolist will not benefit * Solution: keep some benefits from lower costs in form of higher profit, and practice something that is a small departure from MC-pricing. * Public Ownership—government owns natural monopoly instead of private firm * Doing Nothing—degree of â€Å"market failure† in economy smaller than â€Å"political failure† in gov’t Differences and Similarities | Competition| Monopoly| Similarities| Goal of firms| Maximize profits| Maximize profits| Rule for maximizing| MR = MC| MR = MC| Can earn economic profits in short run? | Yes| Yes| Differences| Number of Firms| Many| One| Marginal Revenue| MR = P| MR < P| Price| P = MC| P > MC| Produces welfare-maximizing level of output? | Yes| No| Entry in long run? | Yes| No| Can earn economic profits in long run? | No| Yes| Price discrimination possible? | No| Yes| Chapter 16: Monopolistic Competition. * Oligopoly: market structure in which only a few sellers offer similar or identical products * Concentration ratio: percentage of total output in market supplied by four largest firms * Monopolistic competition: market structure in which many firms sell products that are similar but not identical—following qualities: * Many sellers ? firms competing for same group of customers. * Product differentiation ? downward-sloping demand curve * Free entry and exit ? market adjusts until economic profits driven to zero Monopolistically Competitive Firm in the Short Run * Products are different ? faces downward-sloping demand curve * Same profit maximization rule as monopoly (Q at MR = MC and equivalent P on demand curve) * Identical to monopoly The Long Run Equilibrium. * When firms make profit in the short-run, new firm have incentive to enter the market * Demand curve shifts to left (reduces demand of each individual firm) * As demand for firms’ fall, firms experience declining profit * Conversely, when firms incur losses in short-run, firms exit * Demand curves shift to right (demand experienced by individual firms increases) * As demand for firms’ products rises, firms experience rising profit. * Entry/exit continues until firms in market make zero economic profit (P = ATC) * Demand curve is tangent to ATC (just touching, never crossing) * Characteristics of long-run equilibrium in monopolistic competition * As in monopoly market, P > MC (for profit maximization, MR = MC, and downward-sloping demand curve makes MR < P) * As in competitive market, P = ATC (free entry and exit drive economic profit to 0) Monopolistic vs. Perfect Competition Excess Capacity. * Entry and exit drive each firm in monopolistically competitive market to point of tangency between demand and ATC curves * However, this means quantity produced is less than that produced at the â€Å"efficient scale† –quantity that minimizes ATC (point at which MC intersects with ATC) * Perfectly competitive firms produce at the efficient scale * Monopolistically competitive firms therefore have excess capacity—they are not producing as much as they potentially can * Firm forgoes opportunity to produce more because it would need to cut prices to sell the additional output * More profitable to continue operating at excess capacity Markup over Marginal Cost. * Relationship between Price and Marginal Cost also different * Competitive firm, P = MC * Monopolistic competition, P > MC, because it must be for P = ATC * This leads to behavioural differences b/w perfect and monopolistic competitors * Perfectly competitive firm does not care for additional customers because P = MC, profit from extra unit sold is always zero * By contrast, monopolistically competitive firms P > MC, therefore, extra units sold = more profit Monopolistic Competition and Welfare of Society * One source of inefficiency is that P > MC * Some consumers who value good at more than MC, but less than P will not buy the good * ? deadweight loss similar to that of monopoly pricing * Another source of inefficiency is: 1) Product-variety externality: b/c consumers get some consumer surplus from introduction of new product, entry of new firm conveys +ve externality on consumers 2) Business-stealing externality: b/c other firms lose customers and profits from entry of a new competitor, entry of new firm imposes negative externality on existing firms * Perfectly competitive firms produce identical goods and charge P = MC, therefore neither externality exists under perfect competition * ? Monopolistically competitive markets do not have desirable welfare properties of perfectly competitive markets because it is not ensured that total surplus is maximized * Also very difficult to control these inefficiencies through public policy Advertising * Amount of advertising depends on products * Firm that sells highly differentiated consumer goods i. e.soft drinks, will need to advertise more than seller of undifferentiated industrial nails, or homogenous products like wheat * Some people critique advertising for convincing people that products are more different than they actually are, fostering brand loyalty and encouraging consumers to ignore price differences * With less elastic demand curve, firm charges larger markup over MC. * Support for brands suggests that brands provide consumers with information about quality of goods, and gives firms incentive to maintain high quality to protect reputation of brand names * Others believe encourages competition as it makes customers better informed about products * Advertising can signal quality of product as well, because firm willing to spend money on advertising must be creating a good product.