The total economic profit and loss of all participants involved, defined the overall cost and benefit to society, but this cost accounting that cover only producers and consumers do not include profit and loss received by third party due positive and negative externalities of these production / services. That’s why this third party automatically gets extra moral and political problems as well as free advantages
Taxes and policies is what make producers to hesitate from entering and starting a business in a free market. Unlike in a monopoly, most of the constraints prevents producers from even entering the market, yet for those who have the chance to enter are most likely to gain a much higher percentage of profit compared to a company that sells and distribute the same product in a free competitive market. However, the policies and regulation in a free market is what protects the consumers from dangers. Producers who sell food products are monitored by the government on the quality of the food that is produced, so that the people or consumers health are protected. Producers who sell motor vehicles have more constraint in order to insure the safety of the people.
In the case of technological advancements, these usually results in faster manufacturing times and would require less workers, resulting in lower manufacturing costs and higher supply (Gueye, n.d.). Price elasticity is usually negative, when the price of goods goes up, the demand goes down except when goods are Veblen or a Giffen goods which means that as the price goes up the demand goes up contrary to what the law of demand states. There are products which are inelastic and hence a change in price does not change the demand of the product. These are usually essential items such as medicines. Gatorade is not an essential product and hence it is elastic and highly responsive to a change in price.
Many Americans do not take recycling seriously because they are not well informed and do not consider it is a pressing matter. Recycling has numerous benefits as opposed to not recycling, which means letting the limited resources diminish until there is nothing left. Even though the concept is still widely ignored, recycling has a myriad of benefits to the human population and society. First, What is Recycling? According to EPA government; Recycling Basics; it states that “Recycling is the process of collecting and processing materials that would otherwise be thrown away as trash and turning them into new products.” Recycling has multitudinous profits.
This means that they are dependent on technology to be able to reach customers and therefore their area of activity is limited to the technological resources available. Their diversification strategy has caused some brand confusion, albeit a good strategy to minimize risk, but it has also caused the company to move away from their core competencies. While growth is desirable, some limitations have to be imposed before it becomes too costly. Nevertheless, the company’s strongest weakness, also criticized by its own investors and analysts everywhere, is their free shipping policy and their very small operating and profit margins. Free shipping is a very customer oriented incentive that most investors see as an unwanted trade-off.
However, everything is down to sales forces and to broker’s network. A cheap product can always have good sales in the short term, but a good product can be sold easily in the long term. By just applying the above changes in the quality of the products as well as the promotions and the distribution great benefit will apply in numbers and company can meet objectives and targets. Usually, business try to strive to the easy way of just cutting price and quality ,however that can anticipate great dangers in the future such as losing loyal clients and losing business over
There are also very few alternatives to the products provided by this industry resulting in ultimately higher switching costs. Differentiation within the industry has led to a wider variety of products while pulling in new customers. By providing high quality products to the public, the companies within the industry can control their own price. The customer has many options in this type of industry but little bargaining power due to the nature of the product. For consumers, there are not many substitutes to an addictive habit that will not be addictive themselves.
In this case, the number of kidney donors represents the supply and the number of patients who need to receive a kidney represents the demand. “The present shortage of kidneys is the result of the zero price that is placed on them” (Allen, 2005), also meaning that the good’s price and price ceiling is lower than the equilibrium quantity and price and its price elasticity is negative. If purchasing a kidney was easy and legal, the gap between the supply and the demand of a kidney would result in a relatively low sales' price. This would guide to an easier acquisition for rich individuals at first. With modern methods and medication, transplant operation is considered less dangerous than child’s birth and there is no need for an exact match donor.
Keith Mills, the creator of Air Miles who now also runs Nectar agreed that Tesco got it right, adding another disadvantage of rewards given only on demand. “One of the problems with the Sainsbury’s idea of giving rewards at the checkout was that there was no incentive for customers to tell you where they live. The value of the data they give you quickly goes out of date.” (Clive Humb, Terry Hunt, Tim Phillips, 2004, p. 72) The Clubcard team was very clear from the outset that the investment in a mass mailing programme would pay much higher dividends to Tesco’s business than the cheaper at-the-till alternative. They realized that if Clubcard were to become