Responds to Discussion Post and One Page paper

MY POST

It is impossible to achieve perfect competition because it has so many characteristics that may be impossible to achieve in the real world. However, there are some examples which can be approximated to achieve that perfect competition. Most examples of pure competition are in the agricultural market. Consider running a grocery store at the end of a street in a block of about three other grocery stores. This is a product market that can be approximated to a perfect competition.

First of all there is no restricted entry or exit to the market. Any person can open a new grocery store without any restrictions by anyone whatsoever. Anyone can also leave the market at their own discretion. This is an important feature in the pure competition type of market; there is no restriction to the entry or exit of firms. Secondly, each of the grocery stores sells standard goods. There is no significant difference to the agricultural produce that each grocery store produces. They sell fruits and vegetables and the quality of those items is pretty much the same in each of them. This is also an important feature of the perfect competition as they sell homogenous goods.

The third characteristic of the grocery stores’ market is the fixed price. All the grocery stores sell their produce at the same price for a given product. The price is pretty much the same for a given bunch of fruits or vegetables for each grocery store because the consumers determine the price that they are willing to pay. Finally, the market of these grocery stores has many competitors. There are already 3 grocery stores in just one block and therefore in a given area there could be even more. Therefore, such a market with unregulated entry or exit is bound to attract many competitors therefore making it a good approximation to the perfect competition market.

Pls Reply to teacher’s response

Nichole,

Thank you for your insights.

To what extent the grocery stores industry can be characterized as a monopolistically competitive industry

MY POST

The production of many of the goods that the united states usually import from Mexico causes pollution within Mexico. This pollution is not fair to the Mexican people. The Mexican people produce the goods for purpose of making extra income through exporting to the United States. However, the extra income that they receive from the investment and exportation is then used to cover the costs of pollution within their country (Staib, 2011). The cost of pollution cuts down on their profit making abilities because they have to meet these costs in order to successfully operate. The extra pollution is not fair to the Mexican people since it reduces their income through having to meet the extra cost to maintain their environment. It is the duty of both parties to ensure a reduction of the rate of pollution within the country, which will in the long run benefit both of the countries. 

When firms in Mexico cause any form of pollution that crosses the border into the United States, the residents along the United States border tend to be affected negatively. The pollution is an external cost since the residents have no ability of extracting payments for damages from Mexican pollutes. However, there are different policies that the United States should pursue in order to reduce this pollution. For example, the United States should seek to address the formulation of policies that will reduce pollution by Mexicans (Staib, 2011). The policies shall be able to provide guidelines on the production process at the border in order to affect one country from affecting the other. Further, the United States should seek policies that define the consequences that shall apply on the country that pollutes the environment affecting the other country across the border, which may include compensation policies to the affected residents as well as causing general pollution across borders. These policies may play a major role in reducing the extent of pollution that the countries may cause to each other across borders

Pls respond to Professors Post

Nicole,

Thank you for your insights.

To what extent do you think a “cap and trade” system can be effective to reduce pollution in Mexico?

MY POST

There are different reasons why citizens of some countries usually seem to prefer biggergovernment while other citizens prefer smaller governments. Citizens who prefer bigger government usually assume that the bigger the government the more opportunities there may be in different sectors such as education and business sectors. Lager government tend to have more resources and more connection on performing different responsibilities, which determines the activities that citizens may engage themselves in. these are the opportunities that larger governments tend to offer to citizens. On the other hand, some citizens usually prefer smaller government for different reasons (Cavusgil, 2008). For example, some citizens prefer smaller government since they offer smaller resistance o conducting activities such as business activities. The reduced resistance and increased support may favor some citizens compared to other who may feel comfortable operating within larger governments. 

There are different factors that may prompt citizens of countries with big governments to change their preferences in the direction of smaller governments. For example, such citizens prefer smaller government in order to ease the process of having approvals (Cavusgil, 2008). In bigger government, the citizens may be forced to go through longer processes to get approvals for performing different activities, unlike in smaller governments where the processes are shorter. Further, smaller governments are easy to coordinate and relate to compared to larger governments that have many laws and regulations to confirm to. However, the preference of the advantage of one government over the other is different for different people

Pls Respond to Professors post….

Nicole,

Thank you for your insights.

What are the economic activities that should be controlled by the government? What are those that should not be controlled by the government? Why?