Definition and Features of Monopoly and Competition

Definition and Features of Monopoly and Competition Definition of Monopoly Monopoly is a well defined market structure where there is only one seller who controls the entire market supply, as there are no close substitutes for his product and there are no barriers to the entry of rival producers. This sole seller in the market is called â€Å"monopolist†. The term monopolist is derived from the Greek word â€Å"mono†, meaning â€Å"single†, and â€Å"polist† meaning seller. Thus the monopolist may be defined as the sole seller of a product which has no close substitutes. The monopolist is faced by a large number of competing buyers for his product. Evidently monopoly is the antithesis of competition on. In a monopoly market, the producer, being the sole seller, has no direct competitors in either the popular or technical sense. Thus, the monopoly market model is the opposite extreme of competition. Features of Monopoly The features of a monopoly are: The monopolist is the sole producer in the market. Thus, under monopoly, firm and industry are identical. There are no closely competitive substitutes for the product. So the buyers have no alternative or choice. They have either to buy the product or go without it. Monopoly is a complete negation of competition. A monopolist is a price maker and not a price taker. In fact his price fixing power is absolute. He is in a position to fix the price for the product, as he likes. He can vary the price from buyer to buyer. Thus in a competitive industry, there is a single ruling price, while in a monopoly, there may be differentials. A monopoly firm itself being the industry, it faces a downward-sloping demand curve for its product. That means it cannot sell more output unless the price is lowered. A pure monopolist has no immediate rivals due to certain barriers to entry in the field. There are legal, technological, economic or natural obstacles which may block the entry of new firms. Since a monopolist has a complete control over the market supply in the absence of a close or remote substitute for his product, he can fix the price as well as quantity of be sold in the market. Abuses of Monopoly Though a monopolist has complete freedom in determining his own price, there are some limits to his power. These are listed below: The demand curve of a monopolist slopes downwards. This is shown as demand curve DD of the monopolist in Figure. On such a curve, a monopolist cannot choose both Price and Output to be sold. He has to determine one of these quantities. If he chooses higher price P1 he has to be satisfied with smaller sales of quantity Q1. If he prefers larger output Q2 he will have to charge lower price P2. The second constraint on monopoly power arises out of the income and willingness of consumers. If the monopolist attempts to charge a price as high as Pn his sales fall to zero. So even though a monopolist has complete freedom to charge any high price this freedom is restricted by the consumer’s ability to purchase goods. Finally, monopoly power also depends upon elasticity of the demand curve. If the demand curve is rigid or less elastic the monopolist has a greater degree of control. As the demand curve becomes more flexible or flatter the monopolist’s control starts declining. This can be explained with the help of Figure. In the figure there are two demand curves. DD1 is rigid or less flexible showing greater monopoly control. DD2 is flatter or more flexible and depicts a lower degree of monopoly control. On rigid demand curve DD1 if the monopolist increases the price from P to P1 the fall in the quantity sold is as small as QQ1. On the flatter demand curve DD2 with the same rise in price, a fall in the quantity sold is as large as NN1. In case of a flexible demand curve there is a danger that even at a higher price, the total revenue of a monopolist may be smaller. This has been further explained in the table below: PRICE RIGID DEMAND D1 TOTAL REVENUE TR1 FLEXIBLE DEMAND D2 TOTAL REVENUE TR2 2 6 12 20 40 4 5 20 8 32 6 4 24 5 30 A monopolist attempts to raise his price from 2 to 4 to 6. As a result of this quantity demanded goes on falling. Yet in the case of Rigid Demand D1, with a fall in the demand from 6 to 5 to 4 Total Revenue TR1 increases from 12 to 20 to 24. With the Flexible Demand condition D2 the quantity demanded falls sharply from 20 to 8 to 5 causing Total Revenue TR2 to fall from 40 to 32 to 30. Hence the slope or the degree of flexibility of the demand curve governs the degree of monopoly power Monopoly market is restrictive and hence considered as an evil form of market. Monopoly is also a source of wastage. It underutilizes productive capacity and reduces Consumer’s Surplus. Underutilization of capacity may cause some workers to remain unemployed. These and other shortcomings can be analyzed and explained with the help of a comparative diagram. We find both competitive and monopoly equilibrium positions marketed by point e1 and e2 respectively. A competitive firm produces output Q1 and sells at price P1. A monopolist produces smaller output Q2 (Q2P1). Competition allows only normal profits to a firm as part of the average cost of production. A monopolist earns extra monopoly profits of the size CSRP2. Under competition output is produced at point e1 which is the lowest point on the average cost line. Therefore competition makes fuller utilization of the productive capacity. Under monopoly output is produced at point S which is on the falling phase of AC. This shows underutilization of the productive capacity. Finally, the size of the Consumer’s Surplus under competition is as large as De1P1 while that under monopoly is only DRP2. Hence under monopoly there is higher price, lower output, underutilization of productive capacity or wastage of resources and reduction in Consumer’s Surplus. Differences between Monopoly,  Equilibrium Competitive Equilibrium There are typical differences between the two types of market models their equilibrium positions. A comparative account of their differences is presented below: The demand curve of a competitive firm for its product is perfectly elastic. It is a horizontal straight line. It implies that the firm can sell any level of out put at the ruling market price. While the demand curve of the monopolistic for his product is relatively inelastic, it is a downward sloping curve. It suggests that the monopolist can sell more output only by lowering the price. To a competitive firm, price is given in the market. So at this price, average and marginal revenue will be the same. Hence, AR MR curves coincide and are represented through the demand curve which is a horizontal straight line. In the case of a monopoly, the downward sloping demand curve represents the AR curve. The MR curve also slopes downwards but it lies below the AR curve. If it is linear, then it lies half the distance between the price-axis and the demand curve. Under both perfect competition and monopoly, the equilibrium output is set at the point of equality between MC and MA. The competitive firm attains equilibrium only when the MC curve intersects the MR curve below. Thus, it is essential that MC must be rising at and near the equilibrium output. In fact, the falling cost curves caused by increasing returns to scale are incompatible with competitive equilibrium output, for the firm’s MR curve being horizontal, the falling MC curve can never lead to a competitive equilibrium position because as the firm will be inclined to expand its size until it becomes so large that its AR and MR curves ultimately begin to fall in order to cut the continuously falling MC curve. This means that the firm will become so large that competition will become imperfect and the individual firm would be in a position to influence the price of its product by altering its own output. In short, perfect competition will cease to exist when a firm increases i ts output to a very large extent in order to attain equilibrium under falling cost conditions. It may, therefore, be concluded that increasing returns to scale or a continuously downward sloping MC curve perfect competition are incompatible. It follows, thus, that a major difference between competitive equilibrium monopoly equilibrium is that while in the case of the former, the MC curve of the firm must be rising at or near the equilibrium level of output, in the case of the latter, this is not essential. A monopoly firm can attain equilibrium under any state of returns to scale or cost conditions, whether constant, rising or falling. The fundamental condition of monopoly equilibrium that must be satisfied is: MC=MR, and the MC curve must intersect the MR curve from below (yet it need not necessarily be rising). Again, when we compare the equilibrium conditions of the two models, we find that the fundamental rule of profit maximization is the same, i.e., equating MC with MR, the characteristic difference lies with respect to price as average revenue and MC. Under perfect competition, price=AR=MR; thus, at equilibrium output, MC=price. In monopoly, on the other hand MRMC. In a perfect normal equilibrium condition of a firm under competition in the long run only, normal profit is realized. In the case of a monopoly, excess monopoly profit can be earned even in the long-run. In fact, the positive difference between price and MC in a monopoly gives excess profit. In the long run, when the competitive firm gets only normal profit, it operates at the minimum point of the LAC curve. Hence the competitive firm tends to be of optimum size. A monopoly firm, on the other hand, attains equilibrium at the falling path of the AC curve, which means it doesn’t utilize its plant capacity to the full extent. The â€Å"excess capacity† in a monopoly firm thus causes it to be of less than optimum size. Usually, the monopoly price tends to be higher while the monopoly output smaller than that under perfect competition. A direct comparison of price and output under monopoly and competition is however difficult because a competitive firm is just a part of the industry as a whole, while a monopoly firm is an industry itself. MONOPOLY EQULIBRIUM UNDER DIFFERENT COST CONDITIONS Firms under all market condition achieve equilibrium at a point where MC=MR and MC is increasing or MC>MR if an additional unit is produced. Under Perfect competition this is possible only if the firm is operating with increasing cost i.e. marginal cost curve is sloping upward. Equilibrium cannot be determined if the marginal cost is decreasing or constant. Equilibrium is possible only in fig A where both necessary and sufficient conditions are fulfilled, whereas in B only the necessary condition is fulfilled and in C neither necessary nor sufficient conditions are satisfied. Unlike perfect competition, equilibrium of a monopoly is possible under increasing constant and decreasing cost as shown in Figure FIGURE shows equilibrium of a monopoly firm with increasing cost. The firms AC and MC curves are sloping upward. MC cuts MR at E. Here MC=MR and for any additional production MC>MR. Therefore firm A reaches equilibrium at point E. TR=OQ1 TP. TC=OQ1SN. Pie=NSTP Figure B, the firm reaches equilibrium at point E1 under constant cost. At point E1 MC=MR and thereafter MC>MR therefore the firm stops its production. At E1. TR=OQ2T1P1. TC=OQ2E1N1. Therefore Pie=N2S2T2P2 Figure C explains the equilibrium under decreasing cost. Equilibrium output is determined at point E2. Where MC=MR and MC>MR for any additional output. TR=OQ3T2P2. TC=OQ3S2N2 Therefore Pie=N2S2T2P2 The firm however will not be able to decide its output if under decreasing cost its marginal cost is always below the MR curve as shown in the figure. Fig shows the indetermination of Equilibrium under decreasing cost. Here the MC is all the times below MR hence it is not possible to determine the Equilibrium output. However the case shown in the above diagram may not be practical as the marginal cost cannot continuously decline and become zero. CONTROL OF MONOPOLY Evaluating the economic effects of pure monopoly or partial monopoly form the standpoint of society as a whole, on income distribution, price, output, resource allocation, technological advancement, distribution of economic power, it has been commonly observed that there are more evils aspects than benefits in a monopolistic industry as compared to a competitive industry. THE FOLLOWING POINTS MAY BE ENLISTED IN THIS CONTEXT: The monopoly price is generally higher than the competitive price. Evidently, the consumer is exploited under a monopoly. Output under monopoly is restricted with a view to earning the maximum economic profits. Thus, there is inefficient allocation of resources in a monopolistic industry. It entails waste of excess capacity. Only in a competitive industry there can be optimum utilization of existing plant capacity .In short, under a monopoly a higher price is charged, a smaller output is produced the system of allocation of resources is inferior to that under perfect competition. Usually, excess profit is reaped by a monopoly firm even in the long run. A purely competitive firm, on the other hand reaps just a normal profit in the long run. By virtue of their control over market supply, monopolists can export high prices to make substantial economic profits .Excessive price charged by the monopolists is regarded as a â€Å"PRIVATE TAX† on consumers. On account of high profiteering by the monopolists, society’s income distribution tends to be unequal unjust .The owners of monopoly business tend to become richer at the cost of the consumers. Big monopoly houses may acquire concentration of economic power ion their hands which also endangers political democracy in the country. A monopolist is supposed to be very conservative in the matter of innovation technological advancement .Since there is no threat of competition from rivals in a monopoly market, the firm has no impulse to develop new products or introduce new techniques in production. The monopolist is satisfied with the status quo. In fact sometimes monopolists may buy up new scientific inventions patents destroy them so to avoid rivalry. They do so in order to save loss arising from the sudden obsolescence of existing plant machinery. This tactic obviously obstructs technical progress of the country. Monopoly monopolistic competition tend to aggravate the problem of unemployment due to under allocation of resources. The actual production frontier of the country is kept unduly much below its potential level. This results in a low pace of economic growth in creating poverty in the midst of plenty Monopoly firm quite often resort to unfair practices like price discrimination or cut throat competition infringement of trade marks of rivals .etc with a view to eliminating or killing potential rivals in the market. Many big monopoly houses have tended to spread political economic corruption. It has been alleged that some political parties even govt. officials in India always have a soft corner for certain big business houses. METHODS OF CONTROL They are as follows: Restriction on entry of new firms Restriction on output Monopolists hold on price determination MEASURES OF CONTROL They are as follows: Legislative measures Promotion of competition Consumers resistance Publicity drive Control of price output Fiscal measures Nationalization Co-operative movement Misconceptions about Monopoly Pricing Profits It is commonly alleged that a monopolist can charge a very high price and earn high profits because he has the control over market supply and is a price-maker. This is really not so. A monopolist cannot determine price on the basis of his supply alone. He has to consider the demand aspect as well. In fact, the monopoly price is determined by the relative strength of the forces of demand and supply. Again, while determining the equilibrium price and output, the monopolist is interested in maximum sale because he wants to maximise total profits and not unit profits. So if the demand is slack, he will have to set a low price corresponding to profit maximising condition : MC = MR. Again, it is also erroneous p take it for granted that the monopolists price is always higher than the competitive price. It, in fact, depends on various considerations. If the demand is highly inelastic, while the supply is under conditions of increasing costs, ben the monopolist will restrict output in order to produce at a lower cost anchearn a higher profit. Under these circumstances, obviously, the monopoly price will be very high compared to the competitive price. For example, private monopoly is socially harmful in respect of production and sale of essential agricultural commodities like food-grains for which the demand is highly inelastic while the supply is under increasing costs on account of the law of diminishing returns operating on land. If, on the other hand, the demand is highly inelastic, but the supply is under increasing returns or decreasing costs condition, the monopoly price would tend to be nearer the competitive price. In such cases, monopoly can be socially tolerated. For instance, in producing comforts and luxury items, if a private monopolist invests huge capital, thereby enjoying the economies of scale so that he may supply goods at a low price at a competitive rate, then, such monopoly can be tolerated. Again, when there is a very limited market for a product, a monopolist can supply it at a lower price on account of its low cost of production due to large-scale economies than what is feasible in a competitive market by a large number of firms producing the goods on a small-scale. The competitive market price in such a case will tend to be high because though P AC, under competition, the AC itself tends to be high due to lack of economies of scale and the small-scale of production adopted by each firm . If, however, there is a monopoly which has to cater to the entire market, it would resort to a large-scale production. Hence, the output will be produced at a much lower cost, so even if the monopolist sets a higher price than AC for the sake of high profit, it may relatively turn out to be lower than that of the competitive firm. Similarly, it is also incorrect to say that the monopolist can always earn abnormally high monopoly profit due to his advantageous position in the market. In many cases, demand and cost situation may not be very favourable to the monopolist, so that he cannot make profits. In the long run, the monopolist may be under the threat of new entry in his line of production, so that he may resort to price limit which gives him a lower profit but not a high maximum profit. Potential competition thus serves as a significant constraint on the behaviour of the monopolist. Again, in some cases, the demand situation may be such that the demand curve or the average revenue curve in the long run may be just tangent to the LAC curve. In this case, the monopolist would earn only a normal profit (see Fig. to understand the situation). In Fig., the monopolist decides an equilibrium output OM, and charges PM price. Since the AR curve is tangent to the LAC curve at point P, Price = Average Revenue = Average Cost. Hence, the monopolist simply earns a normal profit. The only difference between such normal-profit monopoly equilibrium and competitive equilibrium is that the monopolist is producing at less than optimum size, i.e., at a higher average cost, while a competitive firm, earning normal profit, would be producing at a minimum average cost, i.e., it has an optimum size. In other words, under monopoly, even though there is just a normal profit earned, there is unutilised capacity of the plant and resources, while in a competitive firms equilibrium, the normal capacity is fully utilised. Anyway, it can be concluded from the above discussion that the monopolist cannot always earn high monopoly profits. Again, the monopolist in the long run should earn at least normal profits, otherwise he cannot survive. A monopolist finding the cost situation much above the demand consideration in the long run has no alternative but to wind up his business.

Challange Faced by University Students Essay

Education is the most important aspect of learning for every generation established in every mode. In university there are different field of studies with different years of each program. It is obvious that new students are going to face further challenges in university. In this case, these challenges could be the burden which can pull them out of the school without completing their studies. This essay will discuss these challenges in condition of financial, social, and academic. To begin with, financial problems are a major challenge for university students includes tuition fee, rent expenses, and text books. Tuition fee is the most common challenge for these students. Though, for some they only take one or two units per semester because of financial problems. The high costs of fee causes many problems for those who are not sponsored. Besides, fee expenses for each semester cost of thousands of dollars. So, tuition fee is a great burden for the unsponsored students. Furthermore, text books are the most essential property students must have in university. First year students also suffered in buying text books regarding to financial problem. Those who are not sponsored are suffered the most on the high cost of these books. Another challenge is that some of them have not enough money in a pocket. But in this case, such challenges can create lot of troubles in their minds throughout their time in the university. Moreover, rent is also a challenge for these students. These students might live in different hostels where some are cheap but isolated from the campus, and some are nearby the campus but expensive. It is better to live nearby the campus for new students to avoid troubles. However, they have problem with monthly rent where it is expensive but must be cleared. Another reason is based on a small amount of their allowance which cannot meet their expenses on rent and others. However, these financial challenges make them concern the most. Another major†¦ [continues]. Read full essay

The Time Machine A Social Critique - 1870 Words

The Time machine is a social critique of H.G Wells’s Victorian England projected into the distant future. The author was known for his Socialist and Communist leanings and propogated the fact that Capitalism is one of the greatest evils of modern society . His major target has always been the elitist branch of evolution - Social Darwinism. An offshoot of Darwin’s ‘ origin of species ‘ theory , Social Darwinism misapplied the idea of natural selection to justify the stratification between the rich and poor. In ‘ The time machine ‘ Wells shows first how far human evolution can go if Capitalism isn’t put to an end : mankind will split into two distinct species, The ruling class ( Eloi) and working class (Morlocks ) . H.G Wells’s portrayal of†¦show more content†¦Through the intertwined symbolism of darkness and light, Wells leads readers to the conclusion that good and evil are inseparable in the human psyche. Weena’s Flowers The time traveller values intelligence above all other human traits, and he is disappointed that future humans are not only unintelligent, but also weak, silly, and uncurious. For a while, his relationship to the Eloi is defined only by intellectual interest and not by real empathy, but it is through his friendship with Weena that he begins to feel true affection for and identification with these creatures. Put another way, it is in the kindness of the Eloi that the Time Traveller can locate their humanity. Weena loves putting flowers in the Time Traveller’s pockets (she treats his pockets like â€Å"an eccentric kind of vase for floral decoration†), and this gesture represents the kind nature of the Eloi. Weena’s flowers are also the only piece of compelling evidence of his travels that the Time Traveller brings back to the present, and they represent hope for humanity in the face of such a bleak tale of the future of mankind. 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Effective Leadership And My Current Leadership Skills

Introduction There are many definitions of the word leadership, but I am particularly taken by the way the business dictionary defines leadership. It defines it as such: an activity of leading a group of people or an organization or ability to do this and involves establishing a clear vision, sharing that vision with others so that they will follow willingly, providing the information, knowledge, and methods to realize that vision and coordinating and balancing the conflicting interest of all members and stakeholders (Business Dictionary, n.d.). This definition solidifies what is expected of a leader and what should be expected of said person to be effective when performing his or her duties in a leadership role. For the purpose of this paper, I will be looking at what effective leadership means to me which I would use to evaluate my current leadership skills. After analyzing my current skills against this model, I will create an action plan to address any deficiencies identified. 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Why did the Great Divergence Occur - 1384 Words

The Great Divergence is term used to portray the gradual shift of dominance that Europe gained by establishing itself as the most powerful world civilization by the 19th century. While a case could be made that the Great Divergence occurred because of the pre-eminence of Europe and Britain, as well as their supposed superiority in invention and innovation above anywhere else in the world, this argument is flawed. A more compelling argument would be to state that it was rather through the geographical advantages that Europe obtained that lead it into eventually becoming the most powerful civilization after 1500 A.D., as this essay will strive to demonstrate. A case could be made that the Great Divergence ultimately grew on the basis of†¦show more content†¦McNeil is also critical of Landes’ preoccupation in the happenings of Europe alone, while remaining dismissive of all economic and technological accomplishments of China after 1 000 A.D. While Landes dismisses the economic demise of China as a â€Å"weird pattern of isolated initiatives and Sisyphean discontinuities,† McNeil instead portrays the rapid innovations of the Sung era, and how they were damaged and disrupted by Mongol conquests and contained within the Ming dynasty, thereby showing that Europe did not surpass Europe in achievement due to their own pre-eminence. Furthermore, while Landes bestows Europe with the accountability of â€Å"invention of invention,† many of the ground-breaking inventions that the world saw in the 15th century were generated in non-European societies. In 895 A.D., China saw the invention of gunpowder. While initially used for flame throwing, it was soon used in bombs, grenades and rockets by 1231 A.D. This opposes the theory that Europe took initiative to employ gunpowder in warfare while China merely used it for leisurely purposes, including flame throwing. Printing and paper-making were also invented in China, and ultimately led to the widespread use of paper currency and the printing of literature. China also saw the innovation of printing by paving the way towards other inventions such as wallpaper, tissue paper, toilet paper and certain articles of clothing. Many of theseShow MoreRelatedThe Great Divergence : China, Europe And The Making Of The Modern World Economy Essay1726 Words   |  7 Pagesquest ions: Why did the Malthusian Trap persist so long? Why the Industrial Revolution occur in England, in1800? Why did the consequent Great Divergence appear? The general answers are: the slow rate of technology advances; the survival of the richest which helps to transmit middle class consciousness; the differences in efficiency caused by labour quality. Thus, Clark considered the success of England more inclined to the culture aspect. Kenneth Pomeranz, the author of The Great Divergence: China,Read More Essay on Number Theory1704 Words   |  7 PagesFibonacci numbers appear in nature is the rabbit family line (and bee family line as well). Another strange way in which the Fibonacci numbers relate to nature is the plant kingdom. Because of these strange relationships, I ask the question: How and why do the Fibonacci numbers appear in nature? In this paper, I will attempt to answer this question. Pascal?s Triangle - Golden Rectangle 2 The man behind the Fibonacci numbers, Leonardo Fibonacci, was born in Pisa in 1175 A.D. During his life, he wasRead MoreThe New Geography Of Jobs1252 Words   |  6 Pagescause of the divergence of the economy in the United States is that cities until nowadays have a traditional economy and they did not shift to knowledge or human capital economy. However, on the opposite side, many cities took advantage of the human capital and invested their forces to be a high-tech market. The book, â€Å"The New Geography of Jobs† of Enrico Moretti is a perfect tool that explains the reasons why this might happen. The book focuses in to explain why the â€Å"Great Divergence† which the AmericanRead MoreEssay on Literary Analysis on Revelation794 Words   |  4 Pagesby her personal upbringing in the South. She lived in the time where people from the South were very intolerant and narrow-minded towards people who had a different lifestyle and who were of a different race. Because S outherners believed people who did not live up to their wealth or status were inferior, it offered O’Connor the exact descriptions she wanted for the characters in this story. The main character in this story, Mrs. Turpin, is extremely prejudice and uses many terms of racial terminologyRead MorePleistocene Ecosystem1114 Words   |  5 Pagesthe Death Valley Region (Fig. 1; Miller 1981). These pluvial lakes would have allowed fish passage between what are now isolated basins. As the rivers eroded the landscape and the climatic conditions began to change at the end of the last ice age so did the waterways within the Death Valley region. Water tables dropped and aquatic habitat became more and more fragmented (Martin Wilcox 2004). Discussion Many genetic studies of the Western pupfish clade have been conducted over the years. A varietyRead MoreOrganizational Deviance And Termination And Interagency Collaboration1633 Words   |  7 Pages(Giblin, 2014, 130). The court system, the crime lab and the witness eye testimonies were all inconclusive and did not match up. For example, the offenders were described one way but Sutton was not remotely similar to the description. Later, DNA that was recovered was concluded that it could not have been his. After serving some of his prison sentence, Sutton was finally released. This is a great example of organizational failure and deviance. There are many terms to describe organizational devianceRead MoreHow Organizations Can Be Deviant And Ultimately Terminated1622 Words   |  7 Pages(Giblin, 2014, 130). The court system, the crime lab and the witness eye testimonies were all inconclusive and did not match up. For example, the offenders were described one way but Sutton was not remotely similar to the description. Later, DNA that was recovered was concluded that it could not have been his. After serving some of his prison sentence, Sutton was finally released. This is a great example of organizational failure and deviance. There are many terms to describe organizational devianceRead MoreWhat Does The Cambrian Explosion Tell Us About Evolution?1754 Words   |  8 Pagesgradual change over time – otherwise known as uniformitarian theory (Erwin, 2011). This inconsistency begs the question: What does the Cambrian explosion tell us about evolution? Are we simply missing information, and the process is indeed gradual – or did something unusual and fairly rapid happen in Cambrian? Knowledge of relationships between animals may allow us to deduce the answer: the two main branches of the animal tree are protostomes and deuterostomes, while the trunk of the tree includes spongesRead MoreThe Origin Of Life And Evolution1744 Words   |  7 PagesThe integration of reason and thought with the methodology of science in most human activities has enabled a great deal of scientific and technological advancements for humanity in the last centuries. On the contrary, even though it is nearly 150 years since the Origin of Species (Charles Darwin, 1859), it seems paradoxical that there are still a great significant amount of people who maintain an anti-darwian position on the origin of life and species. A poll done by Gallup Institute in 2004 showedRead MoreA Higher Power1392 Words   |  6 Pageseach other. One by one, each person steps outside, each feeling spiritually rejuvenated and prepared to face the day. Regardless of the specific belief, there is no question that faith in a religion or a higher power is the very foundation inspires a great majority of society. It is the force that urges humans to fight on through their routinely dismal lives and the force that motivates hard workers to continue their path to eventual prosperity. Considering the magnitude of the term â€Å"a higher power†

Iraq Backlash Free Essays

The main argument in this article is that the continued involvement of the United States in the war in Iraq will lead to unforeseen and even disastrous consequences such as a civil war or even global war given the fact that the United States is ill equipped at dealing with the insurgents and in properly identifying its role in the conflict and the impact of its continued involvement in the war. The writer presents his views by first defining what backlash is and proceeding to show the escalating death toll and skirmishes that have happened in Iraq since the United States has gotten involved. The writer then paints a grim picture of future that lies ahead if the United States continues its policies and involvement in the conflicts in the Middle East and the war in Iraq. We will write a custom essay sample on Iraq Backlash or any similar topic only for you Order Now The view presented by the writer is correct to the extent that the continued involvement of the United States could indeed make them the victim of unforeseen and disastrous consequences such a rising casualties of the armed forces currently stationed there and of the civilians. The continued involvement in Iraq could also be detrimental to the United States economy as any conflict in the Middle East causes the price of oil to rise and directly affects the economic output of any country. A prolonged war, as in this case, caused by continued United States involvement will definitely affect its economy in the long run. The writer however is too quick to point out that global war will be the direct effect of such actions. There is no substantial evidence to show that this will indeed result to a world war III or a world war IV. The other world leaders have been quick to show that the United States is acting on its own accord and have refused to lend any aid in the war in Iraq. How to cite Iraq Backlash, Papers

Financial Analysis Of Tesco J Sainsbury Accounting Essay Example For Students

Financial Analysis Of Tesco J Sainsbury Accounting Essay In this study, fiscal place and accomplishments of Tesco plc is compared and adverted with its close rival J. Sainsbury plc for the three fiscal old ages 2008-2010 as listed on the London Stock Exchange. To happen out which company is better for investing, we will transport out perpendicular and horizontal analysis. Decision will be drawn in the terminal after analysing the companies separately on the footing of analysis. We are emphasizing upon public presentation and profitableness indexs which will assist to happen out which company is better for investing. We besides have stressed upon the indexs of sound fiscal place such on the job capital direction, liquidness and solvency. Outline1 J SAINSBURY plc2 J Sainsbury3 Vertical Analysis of Income Statement4 Gross Proi ¬?t5 5.62 %6 Operating Proi ¬?t7 2.97 %8 Proi ¬?t for the i ¬?nancial twelvemonth9 1.84 %10 Profitableness and Performance:11 J Sainsbury12 Horizontal Analysis of Income Statement13 Fiscal Position14 J Sainsbury plc15 Balance Sheet Trend Analysis16 Non-current assets17 18 19 20 21 Current assets22 Entire assets23 Current liabilities24 Net current liabilities25 Non-current liabilities:26 Net assets27 Equity28 29 30 Entire equity31 Liquid and Solvency:32 Working Capital Management:33 TESCO plc34 Tesco plc35 Vertical Analysis of Income Statement36 53 hebdomads ended 28 February 200937 Continuing operations38 Gross ( gross revenues excepting VAT )39 40 41 42 43 44 45 Gross net income46 Operating net income47 48 49 50 Net income before revenue enhancement51 52 53 54 Net income for the twelvemonth55 Performance and Profitableness:56 Tesco plc57 Horizontal Analysis of Income Statement58 59 60 61 62 Tesco Plc63 Balance Sheet Trend Analysis64 Fiscal Position:65 Working Capital Management:66 Decision J SAINSBURY plc The following exhibits show the horizontal and perpendicular analysis of J. Sainsbury s fiscal place: J Sainsbury Vertical Analysis of Income Statement Year 2010 2009 2008 Gross 100.00 % 100.00 % 100.00 % Cost of gross revenues -94.58 % -94.52 % -94.38 % Gross Proi ¬?t 5.42 % 5.48 % 5.62 % Administrative disbursals -2 % -2.22 % -2.81 % Other income 0.14 % 0.30 % 0.17 % Operating Proi ¬?t 3.56 % 3.56 % 2.97 % Finance income 0.16 % 0.27 % 0.47 % Finance costs -0.74 % -0.78 % -0.74 % Share of post-tax loss from joint ventures 0.69 % -0.59 % -0.01 % Proi ¬?t before revenue enhancement 3.67 % 2.46 % 2.69 % Income revenue enhancement disbursal -0.74 % -0.94 % -0.84 % Proi ¬?t for the i ¬?nancial twelvemonth 2.93 % 1.53 % 1.84 % Profitableness and Performance: It can be concluded from above analysis that company is runing in a concentrated market. The cost of goods is devouring more than 90 % of gross revenues gross ensuing in coevals of 5-7 % of gross net income. The company is gaining negligible net income of 1.8 % 3 % on gross revenues gross in three old ages while other disbursals are of no effects. As gross revenues growing is equal to mean rate of rising prices, so we can detect from horizontal analysis of income statement shown below that the market is non turning and there is no existent growing in gross revenues. This besides shows that net income figures of fiscal twelvemonth 2008-2009 have decreased finally. J Sainsbury Horizontal Analysis of Income Statement 2010-2009 2009-2008 Gross 5.56 % 6.02 % Cost of gross revenues 5.63 % 6.18 % Gross Proi ¬?t 4.44 % 3.39 % Administrative disbursals -5 % -16.33 % Other income -52.63 % 90.00 % Operating Proi ¬?t 5.49 % 26.98 % Finance income -36.53 % -37.35 % Finance costs 0.00 % 12.12 % Share of post-tax loss from joint ventures 24.32 % 5450 % Proi ¬?t before revenue enhancement 57.29 % -2.71 % Analyzed as: Underliing Proi ¬?t before revenue enhancement 12.33 % 11.27 % Proi ¬?t on sale of belongingss -53.63 % 714.29 % Investing belongings just value motions -0.80 % 0.00 % Financing just value motions 50.00 % 150.00 % One-off points 0.00 % -100.00 % 57.29 % -2.71 % Income revenue enhancement disbursal -16.38 % 18.00 % Proi ¬?t for the i ¬?nancial twelvemonth 102.42 % -12.16 % Even though the gross revenues seems to turn from 4 % 6.02 % in the fiscal twelvemonth 2008-2009 but has decreased from 6.02 % 5.56 % in 2009-2010. The gross net income per centum has decreased from 5.62 % to 5.48 % during the twelvemonth 2008-2009 and from 5.48 % to 5.42 % in the twelvemonth 2009-2010. Contrary the operating net income has increased during 2008-2009 from 2.97 % to 3.56 % and has remained changeless during the clip period of 2009-2010. This shows that the profitableness of the company has risen during the above mentioned fiscal twelvemonth. In order to stay profitable the company needs to command its costs as company is already in a concentrated market. Types Of Teachers Essay5.90 % 2,791 5.90 % Share of post-tax net incomes of joint ventures and associates 33 0.05 % 110 0.20 % 75 0.16 % Net income on sale of investings in associates 0.00 % 0.00 % 0.00 % Finance income 265 0.46 % 116 0.21 % 187 0.40 % Finance costs ( 579 ) -1.01 % ( 478 ) -0.88 % ( 250 ) -0.53 % Net income before revenue enhancement 3,176 5.58 % 2,954 5.44 % 2,803 5.93 % Tax ( 840 ) -1.47 % ( 788 ) -1.45 % ( 673 ) -1.42 % Net income for the twelvemonth from go oning operations 2,336 4.10 % 2,166 3.99 % 1,881 2,130 Discontinued operation Net income for the twelvemonth from discontinued operation 0.00 % 0.00 % 0.00 % Net income for the twelvemonth 2,336 4.10 % 2,166 3.99 % 2,130 4.50 % Performance and Profitableness: The fiscal state of affairs of this company is about same as of J. Sainsbury which is because both belong to the retail industry. Again, more than 90 % of gross is the cost of goods. The gross net income per centum is a small spot better than that of its rival which is accounted around 7 % . The operating net income of the company is more than J. Sainsbury which is about 5-6 % and other disbursals are minor. The tendency analysis are exhibited below: Tesco plc Horizontal Analysis of Income Statement 2010-2009 2009-2008 Gross ( gross revenues excepting VAT ) 4.75 % 14.86 % Cost of Gross saless 4.30 % 14.75 % Pensions adjustment Finance Act 2006 Damage of the Gerrards Cross site Gross net income 9.20 % 16.20 % Administrative disbursals 22.35 % 21.52 % Net income originating on property-related points 59.75 % 25.53 % Operating net income 7.82 % 14.87 % Share of post-tax net incomes of joint ventures and associates -70.0 % 46.67 % Net income on sale of investings in associates 0.00 % 0.00 % Finance income 128.44 % -37.97 % Finance costs 21.12 % 91.20 % Net income before revenue enhancement 7.51 % 5.39 % Tax 6.59 % 17.09 % Net income for the twelvemonth from go oning operations 7.84 % 1.69 % Discontinued operation Net income for the twelvemonth from discontinued operation Net income for the twelvemonth 7.84 % 1.69 % Harmonizing to the above analysis, net income has increased by 1.7 % in 2008-2009 and by an optimal amount of 7.84 % in the twelvemonth 2009-2010. The administrative disbursals have increased in 2009 and 2010 because of the decline income by the belongingss. Tesco Plc Balance Sheet Trend Analysis 27 February 2010 2010-2009 A ; lb ; m 2009-2008 A ; lb ; m Non-current assets 6.77 % 34.45 % Current assets ( including non-current assets held for sale ) -12.71 % 113.95 % Current liabilities -8.97 % 71.44 % Net current liabilities 3.25 % 3.86 % Entire assets less current liabilities 7.29 % 40.54 % Non-current liabilities 1.75 % 88.31 % Net assets 13.75 % 8.43 % Equity attributable to proprietors of the parent 13.59 % 8.75 % Minority involvements 49.12 % -34.48 % Entire equity 13.75 % 8.43 % Fiscal Position: The liquidness state of affairs of the company is non every bit much as observed in the current ratio which is critically low. These ratios require more attending even they are increasing from 2008 to 2010. Debt ratio is the index of long-run fiscal stableness, it shows a major growing of debt in balance sheet over the old ages which should be controlled to stay changeless financially. Working Capital Management: In this company, the stock list is turning over more quickly as comparison to the other one debitor s turnover ratio has increased in histories receivable. From above analysis, it is clear that the fiscal state of affairs of Tesco Plc is better than J. Sainsbury. Decision We can detect from the analysis carried out above that the state of affairs of the market is saturated and possibilities of gaining ace net income are minuscular. More than 90 % of gross is spend on the cost of goods sold by both the companies which result in the gross net income of 5-8 % . In order to increase the profitableness in this state of affairs, the cost should be controlled. But Tesco is better option for investing due to following grounds: It is bring forthing a small higher gross net income ; It has kept non-merchandizing costs at lower limit ; It is paying higher dividends ; It is demoing faster growing Both companies have significantly high debt ratio and low current ratio every bit good as quick ratio which show that the fiscal place of none of these companies is impressive.