Genise Suda, Shawanna Baker,
November, 5 2012
Throughout this paper we are going to discuss and explain many different economic subject matters. First we will compare and contrast public goods, private goods, common resources, and natural monopolies. This will be followed by an explanation of how labor market equilibrium is affected by the supply and demand of labor. Next we will select an organization and analyze the characteristics of that organization that make it a specific market structure. After the analysis we will discuss the implications of this structure for the organization’s profitability, and make recommendations that will help the organization sustain economic profits. Finally, we will summarize the factors that affect labor supply and demand for our particular organization.
In order to begin our discussion, we will need to start by answering the following question: What is a market structure table? It is defined as “the collection of factors that determine how buyers and sellers interact in a market, how prices changes, and the different levels of the production and selling processes interact. There are four basic types of market structure. These are: oligopolies, monopolies, perfect competition and monophony (where only one buyer is present in the market)” (Investor Word, 2012). When comparing and contrasting the market structure table, economists must be able to understand the different types of markets, the language, demand, supply etc. Being better prepared for the financial future is a must in this market if the individual or business what to know where they stand. Private goods are goods such as food, clothing, furniture, cars, etc. These goods can be rival or non-rival. Rival are goods that consumers use to try to keep something from happening, and which they use when taking actions to prevent the same accident from happing in the future. Non-rival goods can be consumed by consumers and won’t hinder the consumption by others.
Public goods are goods that can be used by an individual without being reduced from being available for another individual. Economists would define public goods as non-rivalrous and non-excludable. National defense, public parks and basic television can be considered as public goods. Common resources are resources such as water or pastures that gives users tangible benefits. There is a concern with common resources in that they are being overused, that there are poor social management systems in place, and that instead of protecting the resources they are harming it. A natural monopoly is a single source of products to which no industry can increase the size or quantity of the supply. These supplies are water, electricity, and natural gas. The cost to possess a company like water or power is so high, it’s impossible for another company to compete with it. Natural monopolies are utilities that are regulated by the government to keep them from exploiting outrageous prices. Natural monopoly cannot be compared to monopoly. Monopolies are concreted to be short-lived because of the technology that’s being developed competition for an industry.
The labor marketer’s reaches equilibrium the amount of workers need or want to work for a certain amount pay. Employers also have reach whether or not they are willing to hire for amount of wages a workers is requiring. On the supply and demand curve employees are represent as the supply side while the employers represent the demand side....