Conditions for perfect competition outline
The market for coffee is not perfectly competitive, but it is very close. The conditions of perfect competition are that there are many sellers and buyers, the products are similar in nature, and that there are few barriers to entry for new producers, and that prices are determined by supply and demand (Investopedia, 2011). While there are many buyers and sellers, the buyers are often significantly larger than the sellers, so there is some bargaining power in the market. The products are roughly similar in nature although there are some differences in the two main coffee types (arabica and robusta) and between the product of specific farmers, as evidenced by the emergence of single origin or organic coffees. Additionally, coffee has a limited geography of production, placing a constraint on the degree to which coffee production can be increased in response to demand. This is a barrier to entry — England cannot enter the coffee market, for example. The market, however, is controlled by supply and demand.
Thus, the conditions for perfect competition are not met in the coffee market. The most important consideration that affects the market is the barriers to entry and exit. Only a limited number of nations can produce coffee, and this barrier to entry creates a ceiling on coffee production. Similarly, there is a floor on coffee production to some extent. The land on which coffee grows — on tropical mountainsides — is not necessarily good land for growing other commodities. Farmers who grow coffee, therefore, cannot exit the market without sacrificing their ability to earn a living. Thus, one or two seasons of difficult economic conditions may not be enough for the supply in the market to adjust to new market conditions.
Starbucks’ argument that higher prices paid to growers will increase the glut is accurate. The coffee market is in a state of constant surplus, which means that some producers need to exit the market. If Starbucks pays higher prices to farmers, that will only encourage more farmers to enter the market. As a result, the glut will become worse.
The coffee growers are currently operating at a position of economic loss. There is too much production, and the high exit barriers in the coffee industry imply that this condition could hold for an extended period of time. They are producing beans for 80 cents per pound and selling them for 50 cents per pound. Some producers would need to exit the market, or demand would need to increase, in order for the coffee growers to operate at a position of zero economic profit.
Part II. The article I am summarizing is entitled Picking winners, saving losers, from the Economist.
The article discusses the rise of government intervention in markets by means of industrial policy. Several examples are cited, including a French toymaker, the U.S. government’s intervention with automobile and bank bailouts and European involvement in knowledge industries. It is noted that while poorer countries often use industrial policy to help protect nascent industries and to foster growth in certain target sectors, this is not always the case in the West. In recent years, however, industrial policy has enjoyed something of a comeback in the West as well.
For politicians, industrial policy is risky. Some examples have proven successful, while others have proven abject failures that cost significant amounts of taxpayer money. The tradeoff is that some industries are more valuable than others, with respect to either foreign direct investment, jobs or other desirable outcomes for the government. It is noted that while in developing nations industrial policy may be used to support young industries and help them grow, in the West industrial policy often results in the government supporting an industry that is now struggling. Several American cases are cited.
China is discussed in the article as well, as a country that has strong government intervention in many industries. In some “pillar” industries, China’s policies have been highly successful but in others it has been an expensive failure. The China example highlights the risks that governments face when attempting to manage industries through industrial policy.
The article also discusses the role of industrial policy in the development of green energy. There have been some failures — Spain’s support of solar power is one cited — and further risks of industrial policy are cited in this section. The issue of electric cars arises, where there is a sense that government intervention of behalf of a handful of firms developing electric cars is stifling innovation in that industry by distorting the venture capital market.
The article concludes by noting that there are often other reasons beyond economics for industrial policy. In many cases the industry in question is considered to be of strategic importance, and that is the reason for support from government. Boeing was cited earlier in the report as an example of this — propped up by substantial government contracts for its defense business in order to maintain a strong national aircraft developer in the United States.
Investopedia. (2011). Economics basics: monopolies, oligopolies, and perfect competition. Investopedia. Retrieved January 29, 2012 from http://www.investopedia.com/university/economics/economics6.asp#axzz1kmQexa4w
The Economist. (2010). Picking winners, saving losers. The Economist. Retrieved January 29, 2012 from http://www.economist.com/node/16741043
Get Professional Assignment Help Cheaply
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Why Choose Our Academic Writing Service?
- Plagiarism free papers
- Timely delivery
- Any deadline
- Skilled, Experienced Native English Writers
- Subject-relevant academic writer
- Adherence to paper instructions
- Ability to tackle bulk assignments
- Reasonable prices
- 24/7 Customer Support
- Get superb grades consistently
Online Academic Help With Different Subjects
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
What discipline/subjects do you deal in?
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Are your writers competent enough to handle my paper?
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
What if I don’t like the paper?
There is a very low likelihood that you won’t like the paper.
- When assigning your order, we match the paper’s discipline with the writer’s field/specialization. Since all our writers are graduates, we match the paper’s subject with the field the writer studied. For instance, if it’s a nursing paper, only a nursing graduate and writer will handle it. Furthermore, all our writers have academic writing experience and top-notch research skills.
- We have a quality assurance that reviews the paper before it gets to you. As such, we ensure that you get a paper that meets the required standard and will most definitely make the grade.
In the event that you don’t like your paper:
- The writer will revise the paper up to your pleasing. You have unlimited revisions. You simply need to highlight what specifically you don’t like about the paper, and the writer will make the amendments. The paper will be revised until you are satisfied. Revisions are free of charge
- We will have a different writer write the paper from scratch.
- Last resort, if the above does not work, we will refund your money.
Will the professor find out I didn’t write the paper myself?
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
What if the paper is plagiarized?
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
When will I get my paper?
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
Will anyone find out that I used your services?
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
How our Assignment Help Service Works
1. Place an order
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
2. Pay for the order
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
3. Track the progress
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
4. Download the paper
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!