Learning Team D discussed the objectives for week 3. Each Team Member posted a response in regards to topics they felt comfortable with, any topics they struggled with, and how the topics relate to their field. The areas we discussed were: Production Costs and Revenues, Monopolistic Competition, Innovation and Technology, Determinant of Supply, and the Regulation of Monopoly. The following is a compilation of Learning Team D’s opinions of the objectives. Production Costs and Revenue
Marginal Production Costs and Revenues are areas that are common in many types of businesses and markets. Throughout my limited years of experience, I have become aware and intimate with managing costs and revenues through driving production though efficiency and productivity. Both of these figures are influenced by the supply and demand curves through market prices as well as through material supply costs. The idea is to keep costs covered through production as early as possible in order to maximize profit through the revenue brought in via market demand and prices. Where the Average Total Revenue and the Average Total Costs equal out, is the breakeven point for production, meaning that overhead and supply costs are met at that point and producing more products will help yield more profit in general. Monopolistic Competition
Our text describes monopolistic competition is characterized by the following:
·Relatively large number of sellers
·differentiated products promoted by heavy advertisements
·easy entry and exit from industry
Monopolistic competitive industries are much more competitive than they are monopolistic. Monopolistic competition is derived of moderately large firms, as monopolistic competition involves: ·small market share
·void of collusion
Monopolistic firms so not utilize standardized products, and instead use product differentiation. This is achieved through variation of products enabling customer service, provision of location, or through unique qualities real or imagined. So the major drivers are product attributes, services, and location. The monopolistic competitive firm maximizes its profit, or minimizes its loss in the short run, and in the long run it will enter a profitable monopolistically competitive industry and leave an unprofitable one. This information is beneficial in understanding business actions, protocols, and trends, which is a large part of the analysis process and enable better business comprehension. Innovation and Technology
One learning team member, Vershorn felt comfortable with multiple topics discussed this week. The two topics that stood out the most to her were Innovation and Technology. She found the topic of invention the most fascinating between the two because it allows people to be creative and to conjure up an idea, invention, and creation in their mind. This creativity involves the person’s though process so intensely, because they have to experiment with this idea and continually develop and change it until it is in a marketable state. She believes that she is not the only one who is intrigued by innovative creativity and that society is interested as well or shows such as Shark Tank would not exist today. This television show’s primary basis is on the inventions others and whether or not their innovative products could be a profitable item on the market, both to consumers and to investors. Inventors from all over the world have the opportunity to present their invention to a panel of entrepreneurs/potential investors who have the power and the money to make their idea into a reality. The chapter on innovation was very easy to follow and it provided a deeper insight on how businesses stay profitable and viable in an ever-changing market and society.
Another topic to grasp Vershorn’s attention was the Technological Advance and Efficiency section covered in the chapter. The class as a whole has discussed the effect that technology has on society. That technology is forever changing not only in modern creativity but also in the way society actually functions. Currently businesses would probably fail to function if the internet was not as readily accessible as it is now. Companies have switched over from hard copy filing systems to electronic databases. Everything is typed into a computer versus written by hand. If one really sits down and think about it, even one’s physical signature is becoming meaningless, we now have the ability to digitally sign everything. It is no secret that improving ones technology can and will contribute to the efficiency of the economy. Determinant of Supply
When reading about the determinant of supply this was very interesting to read about. The different one and what they actual mean. There was a list of them but they all had different meaning. There was one that was very interesting to read about was technology. Technology is changing every day and they have to make sure that they keep up with the technology. By keeping up with the advancement in technology, this will allow them to be able to sell more good. That is why it is important for them to keep up with the advancement of technology. Another, one that was interesting to read about was producer expectation. If there is ever a change in future prices, it could affect the producers willingness to supply that product. The determinant of supply was interesting to read about and made explain very well what each of them mean. Regulation of Monopoly
The regulation of monopoly is usually done so by the government. It consists of natural monopolies which usually are your utilities such as electricity, water, natural gas, telephone providers, cable television and wireless communications. The government does this to protect the interests of the consumers. Monopolies can set prices higher than in competitive markets. The government can regulate these monopolies. If these natural monopolies are left unregulated, they will produce much less and charge a price much higher than what is socially optimal. Besides regulating price, governments usually prevent competing firms from entering an industry that is thought to be a natural monopoly. A firm that wants to compete with a utility, for example, cannot legally do so. Conclusion:
As our team moves forward, we are developing and getting a better hold on the topics that are covered on week to week bases. Over time, each member will not only increase their knowledge on topics discussed but will also be able to apply them in the day to day lives.