Advantages And Disadvantages Of Oligopoly

One is the based on Marx and the other is based on Weber. According to Marx’s model, there are two broad classes of capitalists and workers. Erik Wright, a sociologist though explains that there are some people who do not fall in either of the two categories. For example, even though supervisors, executives etc fall under the workers’ category, they more accurately resemble to the capitalists. Thus, Wright stated that people can belong to more than a single category.

The industry average is affected by all the companies a given industry, thus if the whole industry is experiencing a downturn the ratios may not valid. If a company compared itself to the industry it may lead to a false

While this may have been true in a time in which education was limited and the economic system was oppressive, in our modern day society this scenario does not apply. We have evolved to the point that one has the chance to grow both socially and economically.

As this plays an important part because as the income level is relatively lower, the income per capita of Malaysians will result in a low purchasing power that makes Malaysia a price sensitive market. So the solution is that Tesco may have to change the products, such as lowering the quantity, lowering the price so that consumers can spend the product that they can afford in relation with their income levels. The increase in unemployment level of citizens in Malaysia has been a major concern for the government. Therefore the Malaysian government appoints employment restrictions for all the multinational companies in Malaysia to hire their local people.

Nowadays, there is a problem with finding the right price in the market because consumers want the lowest and producers the highest price. The market structures shows who is a price maker and who is a price taker and so, the level of profit available. Natural monopoly is a type of a monopoly, which is one of the main market structures. But how does a natural monopoly differ from a normal monopoly and what benefits or disadvantages does it bring with it?

Because of the change, it need lots of time for people to adapt the local conditions. Some food industry groups say higher taxes could damage the industry and lead to job losses. But some experts say that cost to jobs is not as risky as the economic cost. The government connect with consumers and producers will bring a new view in sales and purchase or other point of view in the marketing of sugar-sweetened

We have had numerous recessions which in turn makes matters worse as middle class working people lose their jobs or get paid less as a result of of this. When a group faces this kind of setback, it creates inequality in the country because not everyone suffers because of this, but not much is done to erase the issue. Most problems arise when the middle class is expected to pay a certain amount in taxes that could be beyondmeans while the 1% does not face the same issue. We saw this become a main concern in the 2016 election as some candidates wanted even lower taxes for the 1% in turn putting that burden on the middle class. When focussed more precisely, it becomes known of the wage gap between white workers and black or latin workers.

When people don’t have jobs or are scared about losing their jobs, it affects the way they buy things (consumer confidence, their will to or not to spend their money) which in return, hurts the economy. If the minimum wage is increased then certain businesses won’t be able

For instance, people with disabilities tend to earn less than others. Another impact is forms of political conflicts as a shortage of education, healthcare, and social security… stimulate the assumption that the government is not working for their well being (Lichbach, 1989). When the limit of inequality is reached, the society faces the tunnel effect (Hirschman and Rothschild 1973). When a weak society experiences the tunnel effect, the sound decision would be to implement a policy that tackles growth and distribution at the same time instead of focusing only on total

Marx conveyed bourgeoisie has agglomerated population, centralized means of production and has moved property in a couple of hands. Consequently the term capitalism came forward. Capitalism is basically, private responsibility for means of production. Whereas means of production are the apparatuses important to produce any products or provide services. Marx expressed, Very few number of individual in public eye who consist with manufacturing platform, using the diligent work of workers individuals and the outcomes i.e. profit of the means of production delighted in by the bourgeoisie.

Recession also aids to cease the industries and various organizations due to of low investment leading employees to loose their jobs eventually leading to decrement in income flow in nation. In addition, recession causes investments and government expenditures to go down because of the low income level and low consumption. It causes industries to collaps, firms to lower the costs of production. Eventually leading to unemployment.