Archive for the ‘Section 2’ Category
The Pope against condoms – trying to increase the gap of the positive externality?
Posted by: 11cresma on: April 26, 2010
The Pope and the Vatican is strongly opposed against the use of condoms, and thus because of problems with the religious ethics (see Article). For instance, Catholic religion “steadfastly opposed to the use of condoms for any reason.” Nevertheless, the use of condoms is a positive externality of consumption as shown on the diagram below. [...]
Technology: “The data deluge”
Posted by: 11cresma on: February 26, 2010
In the world today, technology is everywhere. It is a great tool especially to store data. It is now impossible to find companies or individuals of developed countries not using technology. But this huge increase in demand has an impact on the economy. Demand keeps increasing more and more, and it is not likely that [...]
Externalities: Boredom fuels teen alcohol use
Posted by: 11cresma on: February 17, 2010
When teenagers are bored and alcohol is cheap, people choose to drink in order to fight the boredom. They use alcohol as a form of entertainment, as would be going to the movie theater or shopping. The major problem with teens drinking is not only that they may develop an addiction to alcohol, but also [...]
Market structures
Posted by: 11cresma on: February 10, 2010
Perfect competition Oligopoly Monopolistic competition Monopoly
“Ladies’ Night!”
Posted by: 11cresma on: February 3, 2010
Back to the time I was in France, it was quite common that I received mails on my phone from clubs saying “Ladies’ Night – Entrance free for ladies!” I thought this was an interesting example of price discrimination since the purpose of these “Ladies’ Night” is not to directly increase revenue nor to divide [...]
Hennes & Maurtisz: H&M
Posted by: 11cresma on: January 26, 2010
My favorite company is the Swedish clothing company Hennes & Maurtisz, known as H&M. It is the third-largest fashion chain in the world. Unless many brands, H&M provides a variety cheap clothing of good quality, created by designers such as Jimmy Choo, Karl Lagerfield, Stella McCartney and Matthew Williamson. It has about 1924 shops in [...]
Tennis ball game
Posted by: 11cresma on: January 18, 2010
During the tennis ball game, we had to pass on tennis balls from one end to the other, adding people into the line everytime. The total product (the number of balls passed on to the other side) increased most of the time; it increased a lot at first, then slow down, and decreased at the [...]
Happy Thanksgiving!
Posted by: 11cresma on: November 23, 2009
Thanksgiving in one day in the entire year. During this day, people are expected to eat turkey. To add to this tradition, it is a national holiday. As we can imagine, the demand for turkey increases drastically before Thanksgiving. Before and after Thanksgiving (D1), people who demanded turkey wanted it for a normal meal. The [...]
Plastic bag or cloth bag?
Posted by: 11cresma on: November 23, 2009
Taxing plastic bags in order stop people from wasting them is a great idea. Too many bags are thrown away everywhere. The problem with the free plastic bag is that people tend to use more than necessary, “after all, it’s free!” But then, not all of them are thrown away properly, and many end up [...]
Brazil takes off
Posted by: 11cresma on: November 17, 2009
Brazil, in the economic crisis, “did not avoid the downturn, but was among the last in and the first out.” Its economy is based upon the exportation of oil. Both demand and supply for oil are inelastic (it is a necessity but difficult to extract from the ground). As more people entered the market [...]
