Review These Study Questions for A Rose for Emily

Review These Study Questions for 'A Rose for Emily' A Rose for Emily is a favorite American short story by William Faulkner.   Summary The narrator of this story represents several generations of men and women from the town.  The story begins at the huge funeral for Miss Emily Grierson. Nobody has been to her house in 10 years, except for her servant. The town had a special relationship with Miss Emily ever since it decided to stop billing her for taxes in 1894. But, the newer generation wasnt happy with this arrangement, and so they paid a visit to Miss Emily and tried to get her to pay the debt. She refused to acknowledge that the old arrangement might not work anymore, and flatly refused to pay.Thirty years before, the tax collecting townspeople had a strange encounter with Miss Emily about a bad smell at her place. This was about two years after her father died, and a short time after her lover disappeared from her life. Anyhow, the stink got stronger and complaints were made, but the authorities didnt want to confront Emily about the problem. So, they sprinkled lime around the house and the smell was eventual ly gone. Everybody felt sorry for Emily when her father died. He left her with the house, but no money. When he died, Emily refused to admit it for three whole days. The town didnt think she was crazy then, but assumed that she just didnt want to let go of her dad. Next, the story doubles back and tells us that not too long after her father died Emily begins dating Homer Barron, who is in town on a sidewalk-building project. The town heavily disapproves of the affair and brings Emilys cousins to town to stop the relationship. One day, Emily is seen buying arsenic at the drugstore, and the town thinks that Homer is giving her the shaft, and that she plans to kill herself.   When she buys a bunch of mens items, they think that she and Homer are going to get married. Homer leaves town, then the cousins leave town, and then Homer comes back. He is last seen entering Miss Emilys house. Emily herself rarely leaves the home after that, except for a period of half a dozen years when she gives painting lessons.  Her hair turns gray, she gains weight, and she eventually dies in a downstairs bedroom. The story cycles back to where it began, at her funeral. Tobe, miss Emilys servant, lets in the town women and then leaves by the backdoor forever. After the funeral, and after Emily is buried, the townspeople go upstairs to break into the room that they know has been closed for 40 years.Inside, they find the corpse of Homer Barron, rotting in the bed. On the dust of the pillow next to Homer they find an indentation of a head, and there, in the indentation, a long, gray hair. Study Guide Questions Here are a few questions for study and discussion. What is important about the title of the short story, A Rose for Emily? What are the multiple meanings for the rose?What are the conflicts in A Rose for Emily? What types of conflict (physical, moral, intellectual, or emotional) do you see in this story?How does William Faulkner reveal character in A Rose for Emily?What are some themes in the story? How do they relate to the plot and characters?What are some symbols in A Rose for Emily? How do they relate to the plot and characters?Do you find the characters likable? Would you want to meet the characters?What is significant about the gray hair at the end of the short story?What is the central/primary purpose of the story? Is the purpose important or meaningful?How essential is the setting to the story? Could the story have taken place anywhere else?What is the role of women in the text? What about single/independent women? What about the role of wife and mother?Would you recommend this story to a friend?

Free sample - Attracting Students to NOVA Southeastern University. translation missing

Attracting Students to NOVA Southeastern University. Attracting Students to NOVA Southeastern UniversityTertiary institutions such as colleges and universities need a constant supply of students in order to meet their financial needs in not only their daily running costs but also to meet costs incurred in research. Nova Southeastern University, a private, non-profit making university, is no exception. It has endeavored to create a sustainable environment for learning which is further supported by a vibrant on-campus life which is vital to students in choosing the institution of higher learning in which to study in. This essay therefore, explores ways in which Nova Southeastern University can attract more students in order to facilitate smoother running in its activities. The overall need for Nova Southeastern University is to encourage students to study the various courses offered in the instituition and make a career out of it. There is hence a need for the institution to communicate its discovery of the various fields and the deep level of satisfaction enjoyed in pursuance of these courses. The institution needs to phrase from a point of view as to: What attracted this particular student to that specific course? What other fields did the student consider, and why did the student not any choose them? These disciplines need to be presented individually on a basis of their worthwhile, attractive, diverse, challenging and readily on hand career opportunities which is the vital endpoint that students are mainly interested in. The motivation criteria should not be based on academic self-interest but rather on their personal and professional fulfillment. The students need to envision themselves as successful in their careers after graduating. This will gr eatly compliment all enthusiastic efforts at encouraging the students to enroll at the university. In addition, the efforts put in place should also be persistent, patient and realistic. This is since it takes a considerable amount of time to build a critical student mass that shall enroll in the diverse courses offered in the university. It is important to encourage students to join Nova Southeastern University as early as in high school and pre-college. Generally, the university’s employees should act as ambassadors wherever they are. Quick, informative and well-thought out responses in answer to any impromptu questions should be formulated before-hand since the employee may be talking to a potential student. Mainly, careers in Mathematics and Statistics are neglected by students under the perception that they are difficult. Most students are not aware of courses such as Applied Statistics and Physics as a career option. Therefore, presentations should be made to high school students during promotion campaigns. During those visits, those responsible for the awareness program should arrange to meet with guidance counselors or better, invite them to the sessions. Further, support should be accorded to the admissions offices by meeting, calling or writing to prospective students and their parents. Ongoing studen ts can also make presentations at each department’s office preview or open house days. By doing so, they are viewed as diplomats or ambassadors advocating these courses. In addition, the ongoing students can offer campus tour guides for those students who envision joining the university. The university’s alumni can come in handy in displaying Nova Southeastern university as a prestigious institution of which they are proud to be associated with. Various workshops can be very vital in ensuring presentations communicate the intended purpose such as a Quantitative Literacy workshop. The other vital focal point is during the Welcome Week. Most students either change courses or permanently leave the university during this week. Therefore, several changes need to be implemented in order to reverse this trend. Lecturers should be careful when issuing their preliminary promotional remarks so as not to either scare students away or impart an impression that they are in for a rough time and under pressure. In the welcome week, the facilitator should avoid all stereotypical examples that make fun of the discipline and create the impression of drudgery. Each department should have a well written overview of the course. During orientation week, an introduction seminar should be held whereby the essence of studying each particular course is insisted upon. A real-life research project can be presented so as to demonstrate the applicability of that particular field of study in a real case scenario. However, caution must be taken as to the depth of the details since they enta il a complex methodology which might end up building a lasting negative impression. During the second year, students should be encouraged to take up introductory courses rather than in the first year in order to avoid confusion and a feeling of being overloaded. All introductory courses should be taught by the experts in that particular faculty rather than outsourcing from other departments in related and common courses. Preferably, the lecturers should have ample consulting experience gained either as faculty member or full-time consultant in the required field. This is since practitioners not only bring more relevance in the field of study but also express more enthusiasm in teaching. The university should also ensure various departments inter-collaborate so as to look for opportunities both inside and outside the institution. Emphasis should be placed on multidiscipline interaction coupled with strong interpersonal and communication skills. During the registration advisement period, personal contact should be made with the students who had performed best and encourage them to take up the course and additional courses in the semester. The departmental head should solicit support from fellow colleagues in the preparation of information sheets that indicate on the course prerequisites, the semester sequencing and current offerings in the field. Continuous encouragement and support for students till graduation should be availed so as not to end up with a situation whereby the number of those enrolling is higher but with a minimal corresponding number of grandaunts. There are various other vital points in not only enrolling but maintaining a stable number of students in the university. Chief among this is mentorship. An initiative should be taken to contact students regularly so as to offer encouragement and advice as they continue to work towards graduating in these courses. The mentor should be available and approachable informally so as to boost self-confidence and the belief in oneself. Further, the mentor can involve the students in his or her personal research and consultancy. Secondly, it is vital to conduct surveys through interviews on grandaunts. Establish why they chose that career path and ask for their view on what would attract more students into that career path. This can be extended to a similar survey conducted in students already practicing in that field. Have them analyze the measures that have been put into place and let them point out the strengths and weaknesses of the same. Thirdly, publish success story of the successful alumni in each field and avail them in the student’s library and departmental websites. Finally, it is important to incorporate technology. The university should embrace e-learning which ensures students can study at the comfort of their homes and which shall also further its distance education program. If Nova Southeastern University shall continue to thrive and expand its student base in the face of stiff competition, there as a need to implement the aforementioned changes as rapidly as possible. Although most of these changes will take time, in the long-run, the benefits acquired will far outmatch the physical and financial effort put in the implementation of these strategies.

Young goodman brown Essay Example | Topics and Well Written Essays - 250 words

Young goodman brown - Essay Example Eventually, I was able to understand its implication effectively; where I unveiled, the author had strategically twisted each aspect to bring out puritans’ Christianity hypocrisy (Zhu 60). The account is allegorical, whereby its implication entails humanity’s evil and immense desire to keep God’s precepts that, would enable people attain the promised heavenly rewards affirmed by the scriptures. The account’s protagonist besides being unable to retrace his former Christian path, he cannot deem all the people whom he esteems to be holy still venture in witchcraft (Zhu 60). This is inclusive of his wife Faith whom he had left behind, but to his surprise, she is already ahead of him. The application of diverse symbols in the entire account meant to represent diverse aspects enabled me to unveil its meaning coupled with a night journey in the forest, which represents evil. This is because witchcraft mostly its activities occur during the night, whereby darkness is an effective hiding blanket for the evil doers to conceal their true self (Zhu

Breaucratic Mnagement Essay Example | Topics and Well Written Essays - 3500 words

Breaucratic Mnagement - Essay Example The features that promote and perpetuate a bureaucracy may be helpful or wasteful and inefficient. This paper will examine the key traits that make up our modern bureaucracy. It will trace the roots of it origin and evaluate its purpose today. It will answer the question of whether we have moved beyond the bureaucracy and into a new management tradition. It will provide some insight into the value of the changes called for by modern management schools of thought. Max Weber is often referred to as the father of bureaucracy and it was he that brought bureaucratic management to the arena of a studied discipline. The characteristics that define a bureaucracy are found common to all bureaucracies and also large scale profit management. Size necessitates bureaucratic policies as an effective method of quality control at the expense of other traits. Weber, and later Ludwig Von Misis, contributed to the essential elements that were required to manage a bureaucracy. They pointed out the effectiveness of a well-run bureaucracy for institutions such as the military, hospitals, schools, and the public service sector. While we can define an organisation as having the key elements that are required of all bureaucracies, it is also important to study the effect that bureaucratic management may have in perpetuating unintended negative consequences. The roots of modern bureaucracy are found in the beginnings of capitalism. . Puritanism put forth the belief that to further the production of modern man, there necessitated the development of an "increasingly bureaucratic order from which the ‘spontaneous enjoyment of life’ is ruthlessly expunged" (Weber 2001 p.18). Adam Smith was able to define this more exactly and relate its value to business. Smith advocated the belief that by reducing a workers sole employment down to one simple task, it would increase the

Influence of Terror on Pakistan Stock Market Returns

Influence of Terror on Pakistan Stock Market Returns Abstract This paper examines the influence of political instability and terror on Pakistan stock market returns between 1997 and 2010. The study constructs three variables that quantify political instability and terror and examine the effect on country stock return. This study seeks to apply the Generalized Autoregressive Conditional Heteroskedasticity (GARCH) model to assess the impact of these variables on stock market returns and volatility using daily time series data for KSE. Results for KSE showed strong support for the hypothesis that bad news exerts more adverse effect on stock market volatility than good news of the same magnitude. Furthermore, terror and regime have significant negative impact while war has positive but insignificant effect on stock market volatility. JEL Classification: O40, C32. Keywords: Terror, Regime, political instability, growth, ARCH/GARCH. Introduction Many people agree that stock prices sometimes behave in bizarre ways. Markets are pretty tough and quite difficult. In the world of todays no one can negate the importance of stock markets. Stock market acts as a barometer for any countrys economy. In todays information-oriented world, news travels very fast and contagion can spread quickly and capital markets become more flexible and are absorb shocks brought on different news such as terrorism, political instability etc. Stock market of Pakistan is going through quite rough patch from many years. The change of political government and later on the terrorists attacks have badly affected the stock market and make the Pakistan Stock Market unreliable place for investment. As by seeing the overall scenario of Pakistans stock market during that time period it was not difficult for prices to follow certain patterns that support the rejection of Random Walk Hypothesis. This paper examines the impact of change in government, war and terror on economic growth in the Pakistan. Pakistan is one of those episodic-democratic countries who are facing continuous upheavals and socio-political disruptions since their inception. Military interventions could be witnessed in the political history of Pakistan. More over intervallic wars with India, strikes, antigovernment demonstrations and most importantly the ongoing war on terror have popped Pakistan to prominence on the socio-political platform. Such sociopolitical flux, terrorist attacks and other disruptions can have serious implications for stock price movement because stock prices reflect investors expectations about the future and these stock price movements on aggregate can generate a surged wave of activity. There has been an extensive work on study of stock market returns and volatility with respect to the fundamental variables and the macroeconomic variables but a diminutive work has been done so far to study the impact of socio-political factors on the stock market volatility in Pakistan. The existing literature on impact of socio-political factors on stock returns volatility is quite inadequate especially if we talk in context of Pakistani market. Masood Sergi (2008) analyzed Pakistans political risks and events that have affected the Pakistani stock market since its independence but their study chiefly covers the political events. Terrorism and strikes which have recently become the matters of intense interest and the source of unrest in the economy are the missing part there. The Karachi stock market is rapidly converting into a volatile market. If we see figure below it showed that there are high volatility during 1997 to 2010. This cannot be viewed as a positive sign for this emerging markets like Stock market of Pakistan. Though heavy fluctuations in stock prices are not an unusual phenomena and it has been observed at almost all big and small exchanges of the world. But focusing on the reasons for such fluctuations is instructive and likely to have important policy implications. The efficient market hypothesis argued that changes in stock prices are mainly dependent on the arrival of information regarding the expected returns from the stock and risk associated with that stock. (See Figure 1.1) So the purpose of our study is to examine empirically the impact of socio-political instability on Pakistani stock market. This study examines the three factors and their impact on the Pakistani stock market; the political instability due to military interventions, 1999 Kargil war, and terrorism. Literature Review A number of theoretical and empirical articles argue that these factors hinder economic growth of a country. Cutler, Poterba and Summers (1989) claimed that the sock prices move in response to the information other than about the fundamental values. They estimate the fraction of stock returns that can be accredited to various kinds of economic and non-economic events including assassinations of important political or national figures, war, invasions, raids and major policy change but their findings suggests a very small effect of non-economic news on the share price. Most of the studies have found a significant impact of political news or events on the stock market behavior. Chan Wei (1996) studied the impact of political news on the stock market volatility in Hong Kong and using GARCH-M model they found the strong evidence of the impact of political news on stock market volatility inferring that unfavorable political news is correlated to negative returns for the Hang Seng Index and vice versa. Mei Guo (1999) examined the impact of political insecurity on the financial crises in emerging markets and they observe that market volatility increased during political election and transition periods and political uncertainty could be a major contributory factor to financial crisis. Similarly Kim Mei (2001) infered through empirical analysis using GARCH(1,1) filter that the political risk affect the stock market volatility but this impact of political events or news is asymmetric, with bad news having a greater influence on volatility relative to good news. However Voth (2001) have argued that the impact of political factors in studies on German market has been over stated. He argued that the majority of events escalating political uncertainty had a minute or no effect on the value of German assets and the volatility of their returns. Instead, it was inflation that is mainly responsible for most of the variability in stock returns. He suggests that there is no direct linkage between the political factors and the stock market, however through channel it impacts. But Voth (2002) in a panel study of a set of 10 countries using panel regression confess that during great depression political risks changed dramatically over the period, and are adequate to account for a large part of the boost in stock price volatility. Beaulieu, Cosset Essaddam (2002) examined the impact of political risk in Canada on the volatility of stock returns, covering important political events in the country. Their study suggested that political news performs a significant role in the volatility of stock returns. Moreover the volatility of stock returns also depends on the degree of how much a firm is exposed to political risk i.e. the structure of its assets and the level to which there is foreign involvement. Kutan Perez (2002)Â  also found a significant impact of social and political factors on stock return volatility in their study conducted on Colombian stock market. Bautista (2003) applied Regime-switching-ARCH regression on Philippine stock returns to estimate its conditional variance and the estimated volatility was then related to major political and economic events. Their study revealed that the Philippine stock market is sensitive to radical changes in the political situation. Moreover the series of military takeover attempts during late 1980s in Philippines lead to hefty fluctuations in stock market index. Masood Sergi (2008) analyzed political risks and events that have affected the Pakistans stock markets since its foundation. They have found that Pakistans political risk carries a significant risk premium of between 7.5% and 12%. They made forecasts using Bayesian hierarchical modeling and Markov Chain Monte Carlo (MCMC) techniques and found that there is relatively high probability of occurrence of events with an average arrival rate of approximately 1.5 events per year. Many others also wrote that political instability warped the future path of investment decisions (Calvo and Drazen (1997), lessened public investment leading to a shift of government budgets from capital spending to government consumption (Darby, Li and Muscatelli (1998), and makes governments less inclined to make improvements to the legal system (Svensson (1993) Wars and unrest at the borders creates instability and panic among the investors that could affect the stock market movement at large. The affect of war has been analyzed in many studies including Cutler, Poterba and Summers (1989), Aggarwal, Incaln Leal (1999) and in Pakistan Masood Sergi (2008). Aggarwal, Incaln Leal (1999) examined the sort of events that cause large swings in volatility of emerging stock markets. For this purpose they examine various social, political and economic events both at global and domestic level to find out their explanatory power in context of the returns volatility in the emerging markets including the impact of gulf war. Though at small scale but the impact of gulf war was felt in those emerging markets. Similarly Masood Sergi (2008) found that among other factors that they studied, wars with India, 1948, 1965, 1971 and 1999 kargil war negatively influenced the Pakistani stock market. Evia et al. (2008) examined the affect of socio-political conflict in Bolivia on economic performance. Factors studied widespread during the conflicts as strikes, demonstrations, road blockades, and conventional rent-seeking. Their results showed that economic growth due to external factors is positively related to conflict while growth due to productive investment is negatively related to conflict. Terrorism is another as put that has been studied in relation to economic activity. Many studied in this distance; produced conflicting results as Becker and Murphy (2001) argue that economic performance are not much affected, because terrorist attacks usually devastate only a small portion of the overall stock of capital in a country. By contrast, Abadie and Gardeazabal (2005) repeated that terrorism shape overall economic risk in a country and lead to the economic shakiness in the country. They also conclude their study that higher level of terrorism risks results into the lower levels of foreign direct investment (FDI). Almost all studies on terrorism and its influence on stock prices limited to only on a single or few events, such as the 11 September 2001 attacks, as considered by Hon et al. (2004) Chen and Siems (2003) study. Chen Siems (2003), used event study methodology to capture the aftermath of terrorism on global capital markets. They studied on the reaction of U.S. capital markets in response to terrorist attacks. Their results showed that capital markets of US are more resilient flexible than in the past and recover quicker from terrorist attacks than other global capital markets. Their study suggests this increased market resilience to be partially explained by a stable financial sector in US that provides adequate liquidity to support market stability and reduce the spread panic. Methodology and Data Description Stock index data is taken from Karachi Stock Exchange, Yahoo Finance. This is a well known and reliable source of business information in Pakistan. The daily closing value of KSE-100 index is used for calculating the daily returns. The continuously compounded annual rate of return is used to measure the returns for the specific period as; Rt = ln (Pt / Pt-1) The closing prices of KSE-100 index for Karachi Stock Exchange are taken for the period July 2, 1997 to Oct 13, 2010. Our proxies are TERROR, a dummy variable of terrorist incidents during this period; REGIME, a dummy variable for government changes from fully democratic government to Marshal Law or democratic under such condition; a dummy variable for the period of the Kargal War in 1999. We applied regression model and Arch/Garch technique to capture the results. ARCH/GARCH Study Models This section presents the methodology of the paper. Daily data for Karachi stock markets were obtained from Yahoo finance and data for terror, kargal war and regime were obtained from South East Asia Terrorism Portal, and Different News Paper of Pakistan. Study apply ARCH/GARCH tools to see the long term relationship of these variable taking stock return as dependent variable and terror, regime and kargal war as independent variables. As aggregate uncertainty may be a function of political instability, we proceed to model uncertainty directly. It is natural to look at the conditional variance of output. Thus, we examine GARCH processes, in a more general framework than in the previous section. The model estimated here is a GARCH (1,1) process. Engle (1982) argue that in high frequency data large and small disturbance errors appear in group therefore error term variances can be shown as a function of their lagged values. He calls it Autoregressive conditional Heteroskedasticity (ARCH). As an investor or policy maker, we might be interested in investigating the returns and variance financial assets over observable period of time (conditional) rather than long run estimate of variance (unconditional). Engle (1982) shows that it is possible to describe the conditional mean and conditional variance of a financial asset using information set of previous period; Where is the return of financial asset in time t conditional on the information set at time t-1. E represents the expected value in statistics. Consider the simple model Where Where the rate of is return and are the regression parameters. A typical ARCH model can be written as follows: Conditional Mean Equation; Error Decomposition OR where ‘v is the part of variance which is homoskedastic and is the conditional variance which is Heteroskedasticity. This conditional variance can be shown as ARCH Conditional variance Equation, i.e. where and are non negative. Engle (1982) has also derived a Lagrange Multiplier (LM) based principle to test the hypothesis of. Another useful variant of ARCH methodology, proposed by Bollerslev (1986) is the generalized ARCH or GARCH model. Bollerslev (1986) argues that conditional variance in financial series is not only the function of its lagged error term but also the function of its lagged conditional variances. Therefore, GARCH (1, 1) process would be So GARCH model helps to explain the conditional variance with the help of past squared error term and conditional variance lag value. Which also means that conditional variance at time‘t would be function of long run variances and also variances conditional on past information set (short run) or observed shocks i.e. . Testing for ARCH/GARCH effects: Before estimating Arch/Garch techniques, it is first important to check for possible presence of Arch effect in order to know which model is requires the ARCH estimation instead of OLS (Ordinary Least Squire). The presence of ARCH effects in a regression model does not invalidate OLS estimation. However it implies that there is more efficient nonlinear estimator than OLS. (See Table 1.1) Obs*R-Squared is 147.26 and has a probability limit of 0.000. This clearly suggested that ARCH effect is present and presence of Heteroskedasticity suggested that ARCH/GARCH is appropriate model for this type of time series data. So we can apply ARCH/GARCH model on this data instead of ordinary least squire regression. Result of GARCH effects: The results of GARCH are presented in Table 1.3. The first column presents the regression results when we include as independent variables dummy values of the regime, terror, and war. In most of the cases, the variables enter with the anticipated signs, but not all of them are consistently significant at the 0.05 level. We can see an evidence of significant negative impact of terror, regime that show due to bomb blast in Pakistan and change in government negatively impact the country stock return in long run while insignificant positive impact of war on the country stock return. The results can further explained that stock return volatility every day is explained by approximately 71% of the previous months return volatility for Karachi stock exchange. This is significant for KSE returns. The coefficient of return innovation are statistically significant for market implying that new information arrival into the markets has significant impact on predicting next days stock market volatility. Because, the constant term in the variance equation for KSE is significant. The results of GARCH (1,1) are presented in Table 1.3 (Table 1.2) The model can be written as; Mean Equation: = 0.001188+ 0.064048* R_KSE(-1) Variance Equation: GARCH = 4.01E-05 + 0.20721*ARCH+ 0.713458 GARCH(-1) 1.21E-05*Terror + 1.93E-05*War -1.48E-05*Regime The persistence parameter for KSE Durbin-Watson stat = 1.943, which is > 1. This show a very explosive volatility in KSE returns. It also demonstrates the capability of past volatility to explain current volatility (Engle and Bollerslev, 1986) and because it is very high, the rate at which it diminishes is rather very slowly. For ACRH/GARCH, conditional standard deviation and conditional varience graph were as shown in figure 1.2 and 1.3; The GARCH coefficient is both statistically significant and conforms to expectation. This implies that past variances exert significantly positive effect on stock return volatility in KSE. On the basis of these results, it is evident that there is significant time varying volatility in Pakistan stock market returns during the sample periods. Conclusions and Recommendations In this paper, we have estimated a nonlinear GARCH model for daily stock returns volatility and terror, Kargal war and regime in Pakistan. Data for the estimation of GARCH (1,1) models was obtained from Yahoo finance and South Asia Terror Portal and news paper of Pakistan. The asymmetric effect of terror, war and regime on stock returns and volatility was investigated. Preliminary investigation into the nature of the data reveals that study had to employ ARCH/GARCH techniques for data analysis. Firstly, results show evidence of time varying volatility in stock market returns across the market and from the asymmetric model, results indicate that bad news has larger impact on stock volatility than good news in the KSE. The result for KSE showed that terror and regime has negativity impact on returns of KSE while war has positively effect, it may be due to short term period of the war. All three variable are significantly have their impact on the returns.

Show on a Diagram How a Monopoly Firm Will Make Supernormal Profits by Restricting Ouput

Show on a diagram how a monopoly firm will make supernormal profits by restricting output. Discuss how the theory of contestable markets could impact on the price and output of a monopoly. Neo-classical theory defines monopoly as a market structure where one dominant firm supplies most or all output in the industry without facing competition because of high barriers to entry to the industry. The monopolist is a short run profit maximiser and due to the demand under a monopoly being moderately inelastic at any given price, the monopolist is said to be a price maker, unlike perfect competition where the firms are price takers. The diagram below shows the monopoly making supernormal profits by restricting output. The equilibrium profit maximising level of output is 0A where MC = MR, and price will be 0p. Supernormal profits are made, shown by the area on the diagram shaded red. If profit maximisation was not an objective for a monopoly, it might produce at the bottom of its average costs curve (AC). Thus, price being lower than P and quantity produced would be greater. However, because a monopoly is partly defined by wanting to profit maximise in the short run, this is not the case. C AC Price Quantity mR p A Demand 0 Under perfect competition, supernormal profits can only be made in the short run, due to low barriers to entry. The monopolist can earn supernormal profit in the short and long run due to not having to produce at the bottom of the AC curve and having high barriers to entry. These barriers to entry, preventing other potential new entrance from coming in and competing with the monopoly can take various forms. Perhaps the monopoly has control over the source of an essential raw material. Perhaps the monopoly has extremely strong brand loyalty and takes great care to protect its brand image and the loyalty of its consumers through extensive marketing. It has been shown that neo-classical theory suggests that high barriers to entry will earn supernormal profits for a monopoly. Contestable market theory, in which states that there is freedom of entry to the industry and where costs of exit are low, suggests that a monopoly will earn supernormal profits dependent to a large extent on the costs of exit from the industry. If the costs of exit from the industry are low, then the monopoly arguably won’t make supernormal profits in the long run. If a monopoly in the short run is charging high prices and earning supernormal profit, a competitor will enter the industry and take some market share from the monopolist by charging a lower price. The monopolist will react by reducing prices, forcing the new competitor out of the industry. This happens because the competitor cannot compete with the new lower prices set by the monopolist due to its costs being too high. Thus, if the costs of exit from the industry are low, it is worth the competitor entering the market and having earned supernormal profits in the short run. Though, once the competitor has left the industry and the monopolist raises its price again wanting to earn supernormal profits, another competitor will enter the industry reducing the monopolists overall profits and taking market share away from it. Clearly the only way to avoid potential competitors from adopting ‘hit and run’ tactics would be for the monopolist to price at a level where it only earned normal profits. In the long run the monopolist will increase output and decrease price, operating at the optimal level of output where MC = AC. Thus in conclusion it has been shown that a monopoly will make supernormal profits by restricting output. The monopoly chooses the output level to produce at, and wanting to profit maximise, it produces at the point where marginal costs equals marginal revenue. In contestable market theory, the established firm, the monopoly, must behave as if it operates in a perfectly competitive market to prevent ‘hit and run’ tactics by potential competitors, producing where MC = AC.

Facts, Fiction and List of Essay Topics for Middle School

Facts, Fiction and List of Essay Topics for Middle School List of Essay Topics for Middle School Fundamentals Explained The Civil war was among the deadliest wars that ever happened in the us. Deciding upon an emotional topic is also a great idea. You don't have to have legal education. F. Bacon The main intention of the capital isn't to get as much money as possible, yet to make sure that money causes a better life. Whispered List of Essay Topics for Middle School Secrets You first have to establish the reason behind your essay, before it's possible to write persuasive content about it. Read the list and stay in mind that interesting topics are a correct way for an intriguing assignment. An excellent topic should concern actual problems to pull reader's interest. Third, selecting an intriguing topic is an important skill you should master to have a high grade. Finding the most suitable arguments will allow you to prove your point and win. All your statements need to be supported with facts. To the contrary, you might not have been supplied a particular topic in the slightest. When you are requested to choose a great topic for your argument, start with something you're acquainted with. If you are in need of a fantastic essay but have zero opportunity to write it yourself, visit our site and get it. Among the ideas on how to have the interest of your audience is to opt for an emotional topic. In the majority of instances, you want to develop a topic which will enable other people to realize your perspective, and telling them to think that what you write is true. Anyway, in case you still have some trouble with writing, we are here in order to provide help. Creating expository essays is part of your middle school career, which means you need to learn how to compose them properly. In various other tests, you will be shown the gre essay topics to write about. For a student in the center school the typical topics are associated with science and history. Topic of argumentative essay shouldn't be obvious. Understanding how to compose a strong argumentative paper can help you advance your very own argumentative thinking. There are a fantastic number of essays which are believed to be most useful for college applicants. Every American should learn how to speak Spanish. When you write this kind of essay, you should give the reader with a specific statement and stick to it throughout the text. In this kind of situation, it's more convenient to locate ready-made essays and use them as an example. It's needless to say that you should go for a subject that you regard as interesting. For a 6th-grade pupil, choosing only the ideal subject for the upcoming essay might be a genuine challenge. Even if not one of them will interest you, you will without a doubt get more useful info and inspiration for your upcoming work. Even in the event you lack some of them, you should attempt to write it upon your own to observe how it all works. Every family needs to have a all-natural disaster survival program. It's interesting how it's applied to gaining writing skills. You won't even notice the way the hours of research pass, as you'll be too absorbed with the new intriguing facts which you find in the practice. Should you do, you've started failing the test already. Yearly driving tests ought to be mandatory over a particular age. They should be mandatory for the first five years after getting a license. For this reason, you ought to be prepared to not only present your position but in addition support and defend it with the assistance of the solid facts. During the development of the short article, you're expressive a specific point of view and then offering supporting evidence to demonstrate your point. You should have your reasons, and our principal concern is that you wind up getting a great grade. Attempt to pick one which you truly feel strongly in favor of a single side AND one which is not overly common.