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Install a software update for SharePoint Server 2013. : SharePoint 2013, SharePoint Foundation 2013, SharePoint Server 2013. Summary: Install a software update to perform a build-to-build upgrade on servers in a SharePoint 2013 farm. In this article: Before you begin the print, software update process, review the following information about essay questions 2013, permissions, hardware requirements, software requirements, and update processes. To perform the procedures in this article, you must have the following memberships and roles: securityadmin fixed server role on the SQL Server instance. db_owner fixed database role on all databases that are to be updated. Local administrator on the server on print, which you run the Microsoft PowerShell cmdlets. Before you install an update, verify that the following conditions are satisfied: All front-end web servers are load balanced together and are in essay, rotation with the load balancer.

All farm servers are operating properly. For Search, you can view server status by using the Microsoft PowerShell cmdlet Get-SPEnterpriseSearchStatus or by going to Central Administration Manage Service Applications Search_service_application_name . All databases are active and operating properly. Do not start the update if any of the preceding conditions are not satisfied. Resolve all issues before you continue. SharePoint 2013 can handle certain upgrade failures after the thesis, patching phase finishes. However, if the build-to-build upgrade fails, you might have to restore from essay comparing, a backup. Therefore, make sure that you perform a full backup before you start the thesis, update process. After the for a paper on the death, restore is thesis, complete, you can resume the update.

Completed tasks do not run again. Duke Essay Questions. For more information, see the following resources: Before you start to deploy a software update, verify that the thesis print, update strategy that you plan to use is titles for a on the death penalty, optimal for your SharePoint 2013 environment. There are several factors, such as downtime reduction, cost, and complexity that determine the print, strategy to use to deploy a software update. Use the two cars, flowchart in the Determine an update approach section of Prepare to deploy software updates for SharePoint 2013 to determine the update strategy that you want to use: in-place, database-attach, or a combination. For more information about how the thesis print, database-attach process works, see the diagrams in Overview of the upgrade process from SharePoint 2010 to SharePoint 2013.

Monitor the process that deploys updates to essay comparing two cars verify that the update is proceeding as planned. There might be issues that block the update or that result in an updated farm that has elements that do not work as expected. Pay extra attention to database synchronization and customizations. We recommend that you use the Upgrade and Migration page in as the primary tool to view product and patch installation status, data status, and update status in real time. After Setup runs, you can also view the log files and use Microsoft PowerShell to check installation progress. The following illustration shows the farm topology that is used as an example for each patching scenario that is described in thesis print, this article. When you are ready to continue, perform only phd thesis, one of the print, following procedures in phd thesis, this article to install the update: In this scenario you disable incoming requests to the front-end web servers, thus effectively shutting down the entire farm. Print. Then you install the update on all the farm servers. Essay. This strategy combines the update and the build-to-build upgrade phase that is thesis print, described in the Software update process section of Overview of the upgrade process from SharePoint 2010 to SharePoint 2013.

The following illustration shows the steps that are required to install the update on essay, the farm. You can use the illustration as a guide as you go through the steps in the procedure that follows (To install an update without backward compatibility). To install an update without backward compatibility. Notify users that the farm will not be available while you are installing the update. Remove all web servers (WEB-1 to WEB-4) from print, rotation in the load balancer, or pause the load balancer to biology trypsin stop incoming requests to the servers. Run the update executable file to install the update on the application server that hosts (APP-1). Run the update executable file to print install the update on all other application servers that host Search components (APP-2). To do this, perform the procedure Update servers that host Search components during farm downtime which appears later in this article, and career research paper paragraph then return to thesis print the next step in this procedure. Do not run the SharePoint Products Configuration Wizard on these servers at this time. Review the titles for a paper death penalty, upgrade log files to verify that all the application servers were updated successfully.

The upgrade log file and thesis print the upgrade error log file are located at death penalty %COMMONPROGRAMFILES%Microsoft SharedWeb server extensions15LOGS. Upgrade log file names are in the following format: Upgrade- YYYYMMDD-HHMMSS-SSS .log, where YYYYMMDD is the date and print HHMMSS-SSS is the time (hours in 24-hour clock format, minutes, seconds, and milliseconds). The upgrade error log file combines all errors and warnings in a shorter file that is named Upgrade- YYYYMMDD-HHMMSS-SSS -error.log. Log on to the first web server (WEB-1). Run the executable file to install the update on the web server. Run the executable file to essay 2013 install the update on the remaining web servers (WEB-2, WEB-3, and WEB-4).

Review the upgrade log files to verify that all the web servers were updated successfully. Run the SharePoint on the server (APP-1). This will upgrade the configuration database and upgrade each content database. For information about how to run the wizard, see Create and thesis print configure the coursework, farm in the article SharePoint 2013 . Run the SharePoint on thesis, the other application servers. Run the SharePoint on the first web server (WEB-1). Repeat the paper introduction paragraph, preceding step for each remaining web server. Verify update completion and success. For more information, see Verify database upgrades in SharePoint 2013. Add the web servers (WEB-1 to WEB-4) to the rotation in the load balancer, or start the thesis, load balancer to enable incoming requests to the servers. Notify users that the farm is available.

You are finished installing the update and using this article. This scenario takes advantage of the backward compatibility of coursework trypsin SharePoint 2013 and the deferred upgrade feature to thesis print reduce the farm downtime that is required to coursework deploy a software update. However, downtime is thesis, not completely eliminated. Titles. The sites and thesis services will not be available while the database content is being upgraded. This update scenario uses two phases to install the update on farm servers. These phases are as follows: Install the biology coursework trypsin, update on the farm servers.

Perform a build-to-build upgrade to complete the patching process. The following illustration shows the steps that are required to install the update on the farm. You can use the illustration as a guide as you go through the steps in the following procedure, To install the update. Remove half of the web servers (WEB-1 and WEB-2) from rotation in the load balancer, or pause the load balancer to stop incoming requests to the servers. On each web server that is out of the load-balancing rotation (WEB-1 and WEB-2), run the executable file to install the update. Do not run the SharePoint on these servers.

Verify that these web servers were updated successfully by reviewing the upgrade log files. The upgrade log file and thesis print the upgrade error log file are located at %COMMONPROGRAMFILES%Microsoft SharedWeb server extensions15LOGS. Upgrade log file names are in the following format: Upgrade- YYYYMMDD-HHMMSS-SSS .log, where YYYYMMDD is the date and HHMMSS-SSS is the time (hours in 24-hour clock format, minutes, seconds, and milliseconds). The upgrade error log file combines all errors and warnings in a shorter file that is named Upgrade- YYYYMMDD-HHMMSS-SSS -error.log. Remove the research, remaining web servers (WEB-3 and WEB-4) from rotation in the load balancer, or pause the load balancer to stop incoming requests to print the servers. Add the trypsin, updated web servers (WEB-1 and WEB-2) back into the load-balancing rotation. On each web server that is out of the load-balancing rotation, run the executable file to thesis print install the update. Do not run the SharePoint on these servers at biology trypsin this time.

Verify that both of the web servers were updated successfully by reviewing the upgrade log files. Add the updated web servers (WEB-3 and WEB-4) back to the load-balancing rotation. Install the update on all application servers that host Search components (APP-1 and APP-2). To do this, perform the print, procedure Update servers that host Search components with minimal downtime which appears later in this article, and biology coursework then return to the next step in this procedure. Do not run the SharePoint at this time. If your farm has additional application servers that do not host Search components, run the update executable file to thesis print install the update on these servers. Do not run the SharePoint on these servers at this time. Review the upgrade log files to gender sociology verify that these application servers were updated successfully.

At this point in the process, the databases and other components such as settings, features, and site-level data must still be upgraded because the SharePoint was not run on any of the farm servers. However, the farm should be capable of running in backward compatibility mode. The following illustration shows the steps that upgrade the farm servers to finish the patching process. During this process, the sites that are being upgraded will not be available to users. Use the preceding illustration as a guide to follow the steps in the following procedure. The following procedure shows all the steps to upgrade the farm. You can upgrade all components within the same outage window, or you can take some smaller outage windows and upgrade separate parts of the print, farm at different times. If you want to break up the upgrade stage, you can upgrade the biology coursework, following components in separate outage windows: If the software update contains updates to thesis print services that must be applied, you can upgrade the service, and then resume operating the farm (step 8 in the following procedure) until it is possible to take a longer farm outage to complete the content and farm upgrade.

You can take a short farm outage to upgrade only a few content databases (steps 3 and 4 in the following procedure) each time and then resume farm operation (step 8 in the following procedure). You can repeat the phd thesis instrumentation, process over successive outage windows until you upgrade all content and the farm servers are ready to be upgraded. You can also upgrade individual content databases in parallel for a very small number of thesis print content databases at the same time. However, do not attempt to upgrade too many content databases in parallel because it will slow down the overall upgrade process and extend the outage time. We recommend that you do not upgrade more than two content databases on the same SQL Server volume at a time. Start the essay comparing, upgrade for each content database that will occur in parallel several minutes apart to prevent lock contention as the upgrade process starts. In addition, limit the number of content databases that you upgrade on a single web server or application server. Each additional upgrade process will consume a relatively large amount of resources.

The typical number of content databases that you can upgrade per web server or application server is four databases. However, be sure not to print exceed the number of databases that are being upgraded per paper on the death SQL Server volume, no matter which web server or application server originates the upgrade. Remove the web servers (WEB-1 to WEB-4) from print, rotation in the load balancer, or pause the load balancer to stop incoming requests to the servers. Upgrade specific services, as needed. Some updates might also require you to run additional PowerShell cmdlets to career paragraph upgrade specific service applications. Notes for thesis print, a software update might indicate that you have to upgrade a specific service so that it will continue to operate after patching. This applies to a service that cannot operate in backward compatibility mode, for example. You can create a short offline period to upgrade the service without having to biology trypsin upgrade the thesis print, complete farm.

The additional PowerShell cmdlets to upgrade specific service applications should be in the notes if this is required. (Optional) Use the PowerShell Upgrade-SPContentDatabase cmdlet to upgrade each content database. For more information, see Upgrade-SPContentDatabase. This is an optional step, but it will help ensure that all content databases are upgraded first. It has the advantage of paragraph enabling some parallelism to reduce the outage time. Thesis. If it is not performed, all remaining non-upgraded content databases will be upgraded serially when you run the SharePoint to upgrade the farm servers. On the comparing two cars, server (APP-1), do one of the following:

Run the SharePoint. Run the following commands at the PowerShell command prompt: Run the SharePoint or PSConfig (as in step 4 of this procedure) on the remaining application server (APP-2). Run the SharePoint or PSConfig (as in step 4 of this procedure) on the web servers (WEB-1 to WEB-4). Verify update completion and success. For more information, see Verify database upgrades in SharePoint 2013. Add the upgraded web servers (WEB-1 to WEB-4) back into rotation in the load balancer.

You are finished installing the update and using this article. To ensure high availability for existing content, this scenario uses read-only databases on the existing farm. You install the update on a new farm and route user traffic to the new farm after updates are complete. The following illustration shows the sequence of steps to print follow to install the update on a new farm by biology coursework trypsin using the database attach method. For more information, see Upgrade content databases from SharePoint 2010 to SharePoint 2013. Use the preceding illustration as a guide to follow the recommended steps in the following procedure. To install the thesis print, update by duke essay questions using the print, database-attach method. Create a new farm where you will install the software update. This farm does not require front-end web servers.

For more information, see Create the SharePoint 2013 farm for a database attach upgrade. Configure the databases on the existing farm so that they are in a read-only state. For more information about how to configure read-only databases, see the sociology essay, Set the Previous Version Databases to thesis Be Read-Only (Database Attach with Read-Only Databases) section in essay comparing two cars, Upgrade content databases from thesis print, SharePoint 2010 to SharePoint 2013 and , , , SharePoint Server. Configure the titles paper, service application databases on the existing farm so that they are in a read-only state. This prevents unexpected changes to service applications. If you are patching the print, User Profile Service service application database, which is not in SharePoint Foundation 2013, you must export the User Profile Synchronization Service encryption key from the old database and then import the key to the new database. This key is also known as the titles paper penalty, Microsoft Identity Integration Server (MIIS) key, the Synchronization Service encryption key, and the Forefront Identity Manager 2010 (FIM 2010) key. If you do not export and then import the key correctly, the Synchronization Service will not start. To export the encryption key, complete these steps: Use farm administrator credentials to log on to the computer that contains the old User Profile Service service application database.

Open the Command Prompt window, and then change to the following folder: %Program Files%Microsoft Office Servers15.0Synchronization ServiceBin Type the following command, and then press Enter: Where Path is the full path of the file to which you want to export the key. To import the encryption key, perform these steps: Use farm administrator credentials to thesis log on to the computer that contains the new User Profile Service service application database.

Attempt to start the sociology essay, User Profile Synchronization service. Because you have not yet imported the encryption key, the service will not start. Confirm that the service did not start by using the print, ULS log or by making sure that the status of the service is gender sociology essay, Stopped . Open the Command Prompt window, and thesis then change to the following folder: %Program Files%Microsoft Office Servers15.0Synchronization ServiceBin Type the following command, and then press Enter: Where Path is the full path of the file to which you exported the key. (Optional) To check that the encryption key was imported correctly, at the command prompt, type the research introduction paragraph, following command, and then press Enter: Restore the content databases to thesis print the new database server. Create service applications on career research paper paragraph, the new farm for each existing service application in the old farm. Duplicate all the settings from your existing farm.

Verify that there are no issues with the new farm. Enable the print, new farm as the production farm by configuring DNS to point to the new farm or by making sure that the new farm is load balanced. Verify that users can access the new farm. Allow time for users to switch from cached DNS, and then decommission the old farm. Verify update completion and success. For A On The. For more information, see Verify database upgrades in thesis print, SharePoint 2013. You are finished installing the update and using this article. Perform the procedures in this section only career research paper introduction paragraph, when they are pointed to from other procedures in print, this article. This includes the following procedures which are in this section:

Update servers that host Search components during farm downtime. Update servers that host Search components with minimal downtime. Determine server availability groups for update with minimal downtime. Pause the Search service application by typing the career research paper, following commands at print the PowerShell command prompt: On each server that hosts one or more Search components, stop the Search-related Windows services in the following order: On each server that hosts one or more Search components, run the update executable file to install the update. On each server that hosts one or more Search components, start the Search-related Windows services in the following order: Verify that all Search components become active after the update by typing the following command at biology coursework trypsin the PowerShell command prompt: Rerun the command until no Search components are listed in the output. Resume the Search service application by typing the following command at the PowerShell command prompt: Verify that the farm is crawling updated content and able to index new and modified documents.

To do this, you can add or modify an item in a site collection, perform a crawl for the Local SharePoint sites content source, and then perform a search for the item and verify that it appears in the search results. Divide the servers that host Search components into two availability groups to minimize downtime during their update and build-to-build upgrade. Print. (As long as one of the groups is active and healthy, the farm can serve queries and crawl and research index content.) For instructions about how to divide the servers into thesis, two availability groups, see the procedure Determine server availability groups for update with minimal downtime later in this article. Pause the gender essay, Search service application by typing the following command at the PowerShell command prompt: On each server in server availability group 1, stop the Search-related Windows services in thesis print, the following order: On each server in research paragraph, availability group 1, run the update executable file to install the update. On each server in availability group 2, stop the Search-related Windows services in the same order that was prescribed for stopping them for availability group 1. Again, it is thesis print, important to verify that each service is stopped before you stop the duke essay questions, next service.

On each server in availability group 1, start the Search-related Windows services in the following order: Wait until all Search components associated with availability group 1 are active. To determine which components are active, type the print, following command at phd thesis the PowerShell command prompt: Rerun the command until all Search components that are associated with availability group 1 are listed in the output. On each server in print, availability group 2, run the update executable file to install the update. On each server in availability group 2, start the Search-related Windows services in the same order that was prescribed for starting them for research paragraph, availability group 1. Wait until all Search components associated with availability group 2 are active. Thesis. To determine which components are active, type the following command at the PowerShell command prompt: Rerun the on the death, command until all Search components that are associated with availability group 2 are listed in the output. Resume the Search service application by typing the thesis print, following command at the PowerShell command prompt: Verify that the farm is crawling updated content and able to index new and modified documents.

To do this, you can add or modify an item in gender sociology, a site collection, perform a crawl for the Local SharePoint sites content source, and then perform a search for the item and verify that it appears in the search results. Start a SharePoint 2013 Management Shell on any server in the farm. Determine the primary Search administration component and the server that hosts the component by typing the following commands at the PowerShell command prompt: Determine the set of servers in availability group 1. These servers must fulfill the print, following three requirements: The set must contain one or more, but not all, of the following types of Search components: Content processing component. Query processing component.

Analytics processing component. The set must contain one or more, but not all, of the index components for each index partition. The set must contain a Search administration component that is not the primary component that was identified in step 2 in this procedure. Determine the set of gender sociology servers in availability group 2. This set must contain all remaining servers that host Search components, including the server that hosts the primary Search administration component that was identified in step 2 of this procedure. Issue: After an update you may no longer have proper registry key or file system permissions.

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Best of thesis all, you can brush up on some of these skills yourself if you’ve got a bit of spare time. Duke 2013. Set up your own YouTube channel and get filming! In an age when you can pay for likes and promote your Twitter posts, competition is thesis heating up in the social arena, and businesses know that working with paid opportunities is the best (and quickest) way to get ahead. They need experts in paid social advertising – and their need is your opportunity! How do you get these skills? Experiment with your own paid social media campaigns . If you have your own blog or website, use them as social advertising guinea pigs (although you’ll have to deal with the smell). You can start mini-campaigns for relatively cheap, and it will get you familiar with all the comparing two cars, ins and outs of paid social advertising. Thesis Print. This experience looks stellar on your marketing skills list. User experience design (UXD or UED) is another one of those fast-growing fields where employees are constantly in demand.

Businesses know that their product needs to be smooth and streamlined, and they are chomping at the bit for skilled UX designers who can help create an intuitive, natural product experience for users. Whether for apps, software, or site design, UX is X marks the spot on your search for prime marketing skills! Businesses are beginning to instrumentation, get freaked out by how much data they have at their disposal. From conversion tracking cookies, social media responses, and print video views to GPS data and app activity, the sheer quantity of big data companies have access to is mind-boggling. That’s where you come in – the data analysis expert who can help sort, organize, and, most importantly, extract meaning and actionable insights from these huge data landfills. In order to titles, be a data scientist, you’ll need to be madly in love with math and be a true numbers guy. If you’ve got the goods, you can be sure businesses will be knocking at your door (or even breaking it down). Scary, scary math – not for data scientists though! Going hand in hand with the statistical analysis crew, brands also want to thesis, be able to share some of titles their data insights with their key target audiences.

However, most of us don’t perk up at print, the thought of combing through spreadsheets for that eureka moment. That’s where data visualizers come in titles penalty – they help reformat valuable, insightful data into visual graphs, charts, and graphics that make those numbers easier to digest. Data visualizers are utilized to create powerful, data-driven content that is appealing to users (infographics are a prime example). Data visualization mastery is in high demand, so be sure to detail your knowledge on thesis print your marketing skills resume. Infographics from Visual.ly. 13. HTML, CSS, and Other Coding Languages. Knowing some basic coding has always been valuable, but today you’ll get a big bonus as a marketer with a little coding skill. Phd Thesis Instrumentation. Engineers and coders are valuable commodities, and they won’t gladly be spared to fix the padding on your tables and thesis print align your text properly. Proving you know at instrumentation, least some very basic HTML and CSS skills shows that you can self-correct your own hiccups with a bit of finagling.

If you’re beyond the basics, even better! Brands realize that individuals make purchasing decisions based off of their feelings and emotional cues. It’s why advertisements like the Budweiser Super Bowl puppy ads are so successful. As businesses seek to amp up the emotional storytelling and strengthen consumer bonds to brands, they want experts who understand consumer behavior and can help figure out what makes their key audiences tick. Thesis Print. What marketing skills do you think will provide major brownie points in 2015? If you’re an employer, what skills are you looking for in a new hire?

Here's a summary of the top 14 marketing skills we think you should add to your resume: Content marketing skills Content management system (CMS) experience Customer relationship management (CRM) skills Mobile marketing skills Lead nurturing skills Email marketing skills Experience with a host of trypsin marketing tools Video production and editing skills Social media advertising skills UX design Data science Data visualization Coding skills Consumer behavior insights.

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Essay on Monopoly Market | Micro Economics. In this essay we will discuss about monopoly market. After reading this essay you will learn about: 1. Print? Meaning of Monopoly 2. Sources and Types of Monopoly 3. Phd Thesis Instrumentation? Monopoly Price Determination 4. Thesis Print? Degree of career paragraph Monopoly Power – Its Measure 5. Meaning of Monopoly Price Discrimination 6. Types of Price Discrimination 7. Conditions for Price Discrimination 8. Thesis Print? Benefits of Price Discrimination and Other Details. Essay on the Meaning of Monopoly Essay on the Sources and Types of Monopoly Essay on phd thesis instrumentation, Monopoly Price Determination Essay on the Degree of Monopoly Power – Its Measure Essay on the Meaning of Monopoly Price Discrimination Essay on print, the Types of Price Discrimination Essay on the Conditions for essay questions Price Discrimination Essay on the Benefits of Price Discrimination Essay on the Harms of Price Discrimination Essay on print, Control and Regulation of research introduction paragraph Monopoly. Monopoly is a market situation in which there is only one seller of a product with barriers to entry of others. Thesis Print? The product has no close substitutes. Essay Comparing Two Cars? In the words of thesis Salvatore, “Monopoly is the form of market organisation in which there is a single fir m selling a commodity for which there are no close substitutes.”

The cross elasticity of demand with every other product is very low. Duke Essay 2013? This means that no other firms produce a similar product. Thus, the monopoly firm is thesis, itself an industry and biology coursework trypsin, the monopolist faces the industry demand curve. The demand curve for his product is, therefore, relatively stable and slopes downward to the right, given the tastes and incomes of thesis print his customers. It means that more of the product can be sold at a lower price than at a higher price. He is a price-maker who can set the price to his maximum advantage. However, it does not mean that he can set both price and output. He can do either of the career paper introduction, two things. His price is determined by his demand curve, once he selects his output level. Or, once he sets the thesis print, price for his product, his output is determined by what consumers will take at that price. In any situation, the ultimate aim of the monopolist is to have maximum profits.

Essay # 2. Essay Two Cars? Sources and Types of print Monopoly : Monopoly may arise from research introduction paragraph, a number of sources and is of various types: First, grant of a patent right to a firm by the government to make, use or sell its own invention. Second, control of a strategic raw material for an exclusive production process. Third, a natural monopoly enjoyed by a firm when it supplies the entire market at a lower unit cost due to increasing economies of scale, just as in the supply of electricity, gas, etc. Fourth, government may grant exclusive right to a private firm to operate under its regulation. Such privately owned and government regulated monopolies are mostly in public utilities and are called legal monopolies such as in transport, communications, etc. Fifth, there may be government owned and regulated monopolies such as postal services, water and sewer systems of municipal corporations, etc. Sixth, government may grant licence to a sole firm and protect it to exclude foreign rivals. Seventh, the sole manufacturer of a product may adopt a limit pricing policy in order to thesis, prevent the entry of new firms. Essay # 3. Monopoly Price Determination : We study the determination of monopoly price in the short-run and essay comparing two cars, the long-run. The analysis of the determination of the price, output and profits under monopoly is based on the following assumptions: (1) There is one seller or producer of a homogeneous product.

(2) There are no close substitutes for the product. (3) There is pure competition in the factor market so that the price of each input he buys is given to him. (4) The monopolist is print, a rational being who aims at gender sociology maximum profit with the print, minimum of comparing costs. (5) There are many buyers on the demand side but none is in a position to influence the price of the product by his individual actions. Thus the thesis print, price of the product is given for the consumer. (6) The monopolist does not charge discriminating price. He treats all consumers alike and charges a uniform price for his product. (7) The monopoly price is uncontrolled.

There are no restrictions on gender essay, the power of the monopolist. (8) There is thesis, no threat of instrumentation entry of print other firms. Price and Output Determination : Given these assumptions, the price, output and profits under monopoly are determined by the forces of demand and supply. The monopolist has complete control over the supply of the product. He is also a price- maker who can set the biology, price to his maximum advantage. But he cannot fix the price and output simultaneously.

Either he can fix the price and leave the output to be determined by the customer demand at that price. Or, he can fix the thesis, output to be produced and leave the price to be determined by the consumer demand for for a on the his product. Thus, whatever price he fixes and whatever output he decides to produce is determined by the conditions of demand. The demand curve faced by a monopolist is definite and is downward sloping to the right. It is his average revenue curve (AR). Its corresponding marginal revenue curve (MR) is also downward sloping and lies below it. But the manner and extent to which the monopolist will be able to influence price or output will depend upon the elasticity of demand for his product. If the demand for thesis his product is titles on the death penalty, highly elastic, he can sell more by print a small reduction in price.

If, on the other hand, the demand is less elastic, the duke essay, tendency will be to raise the price and profit more by thesis print selling less. Given the demand for his product, the monopolist can select the most profitable output against this demand. His cost of production may be rising, falling or constant. Whatever the nature of the cost curves- straight line, convex or concave—the monopoly equilibrium will take place at coursework trypsin a point where the marginal revenue equals marginal cost i.e. Thesis? ?R /?Q = ?C /?Q. The monopolist maximises his profits at the price where the difference between total revenue and total costs is the maximum i.e. Max ? = TR-TC. In other words, the monopolist gains the maximum when he equates marginal revenue ( MR) to marginal cost (MC). He may do this either by estimating the essay, demand price and the cost of producing various outputs or by a process of trial and error. Geometrically speaking, the point of print monopoly equilibrium is essay comparing, one where the MC curve cuts the MR curve from thesis, below or from the left, and a perpendicular from career research paper introduction paragraph, it to the AR curve determines price. It implies that. Price MC = MR.

In fact, monopoly price = MC –E/E-1. AR (Price) = MR MC –E/E-1 and MC = MR. Monopoly Price = MC E/E-1. Thus monopoly price is a function of the MC and the elasticity of print demand. We discuss below the determination of monopoly price in the short period and the long period.

(A) Short-Run Monopoly Equilibrium : In the short-run, the monopoly firm attains equilibrium when its profits are maximised or losses are minimised. Like the competitive equilibrium, this analysis can also he discussed in terms of the titles for a paper, total revenue-total cost approach and the marginal revenue-cost approach. Total Revenue-Cost Approach: In Figure 1. TC is the total cost curve showing a constant rise in the total costs as output increases. TR is the total revenue curve which goes on rising to begin with, then flattens and later on thesis print, slopes downward, showing fall in total receipts after a given point. The monopolist will maximise his profits at that output where the difference between TR and TC is the greatest. This will be the level at instrumentation which the slopes of TR and TC curves equal. Accordingly, P is the equilibrium point as determined by the tangents at points P and T on the TR and TC curves respectively. A and are the break-even points where TR = TC. To the left of A and thesis print, right of B, the monopolist is incurring losses because TC TR.

Thus his maximum profits will be PT and he will sell OM output at coursework MP Price. Marginal Revenue-Marginal Cost Approach: In the short-run, the monopolist can change the price as well as the quantity of the product. If he intends producing more, he can do so by increasing the use of variable inputs. He may start two shifts of production; hire more labour, raw materials, etc. But he cannot change his fixed plant and equipment. On the other hand, if he wants to restrict his output, he may dispense with certain workers, work for thesis print less hours and phd thesis, use less of the variable factors. In any case, his price cannot be below the average variable costs. It implies that he can continue to incur losses during the short period so long as he covers his average variable cost (AVC) of production.

Price is determined when (1) P SMC = MR, and print, (2) The SMC curve cuts the essay comparing, MR curve from below. It is at this equilibrium point that profits are maximised or losses are minimised. In Figure 2, SAC and SMC are the short-run average and marginal revenue curves respectively. AVC is the thesis, average variable cost curve. D/AR is the demand curve (the average revenue curve) whose corresponding mar­ginal revenue curve is MR. The short-run monopoly equilibrium is at point E where the SMC curve cuts the MR curve from below.

The monopolist sells OM output at MP (=OB) price. The price MP, being above the short-run average cost MA, the monopolist earns AP profits per unit of output. Thus total monopoly profits are AP ? CA= CAPB. In Figure 3, the short-run equilibrium of the monopolist is shown when he earns only normal profits. The equality of SMC curve and sociology essay, MR curve at point E determines OM output which is sold at MP Price. Since the SAC curve is tangent to the AR curve at this level of output, the monopolist earns normal profits.

The monopolist knows that any level of output other than OM would bring losses because the SAC curve would be higher than the AR curve. Figure 4 shows a short-run situation in which the monopolist incurs losses. As usual, the equilibrium point E is determined by the equality of SMC and MR. But the monopoly price MP, as fixed by demand conditions, does not cover the short-run average costs of thesis print production PA. It just covers the biology coursework trypsin, average variable costs MP, represented by the tangency of the demand curve D and the AVC curve at point P. PA is thus per unit loss which the monopolist incurs. Total losses are equal to print, BP x PA = BPAC. In this figure, P is the shut­down point for this firm. If the market demand conditions lower the price from MP downward, the paper, monopolist will temporarily stop production. His firm will close down. (B) Long-Run Monopoly Equilibrium:

In the long-run, the monopolist can remain in business only if he is able to earn super-normal profits. If he was incurring losses in the short-run, he has enough time to make changes in his existing plant in thesis, the long- run so as to maximise his profits. With entry of instrumentation new firms ruled out, he can install a plant which gives him maximum profits. The scale of his plant depends upon thesis, the position of the demand (AR) curve and its corresponding MR curve. The most profitable level of output is at the point where the LMC curve intersects the titles paper on the death penalty, MR curve from below and the SMC curve passes through this point.

Further, the SAC curve must be tangent to the LAC curve at this level of output. Suppose in the long-run, the monopolist installs an efficient plant represented by the curve SAC 1 and SMC 1 in Figure 5. On this plant, the thesis print, long-run profits are the maximum at the output OM where LMC = MR at point E. Since at this level the research introduction paragraph, short-run average cost curve SAC 1 is tangent to the LAC curve at Point A, the SMC 1 curve is also equal to the LMC curve and to the MR curve (SMC 1 = LMC =MR) at print the equilibrium point E. Thus when the monopoly firm is in long-run equilibrium, it is also in instrumentation, short- run equilibrium. By changing its scale of plant in the long-run, the print, monopolist charges the price OB (=MP), sells the output OM and earns BPAC monopoly profits. However this plant is less than the optimum size because the monopoly firm is biology, not producing at the lowest point L of the LAC curve.

It has some excess capacity. It is not in a position to thesis print, take full advantage of the economies of scale due to the small size of the market for his product. Essay # 4. Degree of Monopoly Power – Its Measure: In monopoly, the monopolist is able to earn monopoly profit by his superior bargaining power. He is in a better position to exploit the research, market to his advantage.

He gains more by putting restraints on his actual and potential competitors. Thus monopoly power refers to the restraints imposed over his competitors by the monopolist through his price-output policies. There are two important methods of monopoly power: First, the difference between marginal cost and price. Since in Monopoly, the marginal cost is always less than the price, the greater the difference between the two, the larger is the monopoly power. Second, the difference between monopoly super-normal profits and competitive super-normal profits is thesis print, also considered as the measure of monopoly power. The greater the difference between the two, the larger is the degree of monopoly.

However, economists have given other measures of monopoly power. For A On The? We discuss a few. Thesis Print? But no method is regarded as perfect. One of the earliest methods to biology coursework, measure monopoly power is expressed by thesis print Prof. Abba P. Lerner in terms of the essay comparing, bargaining strength. The difference between price and marginal cost is the measure of the degree of monopoly power. If P is price and MC the thesis, marginal cost, the formula for measuring the degree of monopoly power is P-MC/P. Comparing? A seller’s monopoly power depends upon his ability to sell his product at thesis a price much above his marginal cost.

The larger the gap between price and paper on the, marginal cost, the greater is the monopoly power. A competitive seller has no monopoly power at thesis all, because under perfect competition P = MC. In all cases, the above formula will give zero. But in the case of overproduction, MC may exceed price and the index will have a negative value. Moreover, if the seller is a monopolist, the trypsin, difference between price and marginal cost is print, always there. The index of monopoly power will, therefore, vary between zero and unity. For instance, if P is duke questions 2013, Rs.4 and MC Rs.2 the thesis, index of monopoly power will be 1/2 i.e. (4-2)/4. It is, however, not easy for a seller to raise the price of his product in order to increase his bargaining price.

The attempt to raise profits by a price rise may be neutralized by the reduction in his sales resulting from titles for a paper penalty, raising the price. Therefore, the degree of monopoly power is measured in terms of the elasticity of demand and the formula is: Degree of monopoly power (DMP) = (P – MC)/ P. For profit maximisation, MC = MR, and the formula becomes. DMP= or the inverse of the elasticity of demand, By substituting MR = P E-1/E in the above equation, DMP= (P-P E-1/E)/P = P- PE +P/E/P = PE- PE+P/EP = 1/E. Or the inverse of the elasticity of demand, P/P-MR. Lerner’s measure is illustrated in Figure 6 where AC and MC curves are the firm’s average and marginal cost curves, while D and MR are its demand and marginal revenue curves.

The monopolist firm maximizes its profit at point E where MC = MR. It produces OM output and sells it at MP Price. The ratio PEIPM is termed as the degree of monopoly power. The degree of monopoly power is the reciprocal of the print, P-MR elasticity of demand i.e., P-MR/P. In Figure 6, P is gender sociology essay, equal to thesis, PM while MR is equal to EM. Rewrite the formula, The formula indicates that the degree of monopoly power is the reciprocal of the price elasticity of demand E. The lower is the price elasticity of gender demand the greater is the degree of monopoly power. The higher the elasticity, lower the thesis, monopoly power. If, for instance, price elasticity of demand is 2, the degree of monopoly power will be one-half. On the other hand, the elasticity coefficient of 1/2 will indicate a monopoly power of 2. Though interesting, this measure of monopoly power has many limitations.

First, monopoly power does not depend exclusively on the difference between price and research, cost. It also depends on the restriction of output by the monopolist seller. The index showing the thesis print, degree of monopoly may be equal in the case of two firms. But one may have under utilisation on its existing plant and equipment while the other may show underinvestment. The above formula fails to explain these important aspects of monopoly power. Secondly, the Lerner formula is incapable of measuring non-price competition. Again the index of monopoly power may be the same in case of two firms. But one firm may be engaged in intensive non-price competition than the other firm. For A On The Death? It may thus be selling a large quantity of its product.

Lerner’s formula does not throw any light on this aspect of the print, problem. Thirdly, even the case of absolute monopoly power is difficult to explain in essay, terms of this formula. The price elasticity of demand measures income and substitution effects of a change in price on consumer’s demand. But under absolute monopoly where competition is print, absent, the substitution effect is zero and the income effect is the only effect. Thus the price elasticity of demand under monopoly measures only the income effect which may be negative or positive. The main flaw in Lerner’s measure is that it does not attach any definite coefficient of elasticity to the degree of coursework trypsin monopoly power. Fourthly, Lerner’s measure is essentially static. It does not reveal whether the level of thesis marginal cost is due to paper, superior technology or the result of obsolete methods of production. Lastly, the print, Lerner measure is affected by changes over time in the ratio of capital to labour in an industry.

Despite these limitations, economists like Dunlop and career research introduction paragraph, Kalecki used this index to measure the thesis print, degree of monopoly power. The former used this in the case of selected industries and the latter for the whole economy. Prof. Robert Triffin has improved upon Lerner’s measure by suggesting price cross-elasticity instead of price elasticity of demand. Price cross-elasticity of demand measures the degree of career research substitution between the products of two firms when a change in print, the price of one firm’s product affects the demand for the other’s product. When the biology coursework, cross-elasticity of demand between the product of one firm and of all other firms is zero, the reciprocal of cross-elasticity would be infinity and the firm would have absolute monopoly power.

According to Triffin, under pure monopoly, the cross-elasticity of demand is zero and the monopolist takes advantage of absolute monopoly power. On the other hand, cross-elasticity is infinite under perfect competition and thesis, the firm’s monopoly power is zero. First, like Lerner’s measure, the Triffin measure is unsuitable for practical purposes. Pure monopoly like pure competition is unreal. Secondly, it is not possible to find out a definite coefficient of cross-elasticity of demand in the case of any firm. Thirdly, the method of measuring monopoly power in terms of cross-elasticity of demand is not correct because its coefficient is zero both under pure monopoly and pure competition.

But monopoly power is paper introduction paragraph, found under pure monopoly rather than under pure competition. Prof. J.S. Thesis Print? Bain suggests the size of super-normal profit as the degree of monopoly power. Biology Coursework Trypsin? He uses the divergence between price and average cost as the measure of monopoly power.

Under perfect competition, super-normal profits are competed away with the entry of new firms in the industry. So the degree of monopoly power is zero when competition is pure. It is, therefore, under monopoly with no threat of entry of new firms that monopoly profits are the thesis, largest and the degree of monopoly power the absolute. The degree of monopoly power will, however, be small where the threat of sociology new entrants exists. Thus the degree of monopoly power is measured by the size of super-normal profits. The greater the strength of the thesis print, seller, the larger profits he will earn without any threat of new entrants. The Bain measure is illustrated in Figure 6 where the monopoly firm produces OM output and sells it at MP Price. The difference between price and average cost (AC) is PC at OM per unit of gender sociology essay output.

Thus A PC are the super-normal profits which measure monopoly power. But this measure is also not free from shortcomings. First, it is difficult to estimate the print, net income accruing to a firm. It depends upon the extent of its amortization of the cost of fixed factors. Secondly, there are other difficulties, like the deduction of interest and wages of management from the firm’s net income in order to calculate its profits.

Thirdly, all profits accruing to a firm are not monopoly profits. Firms, whether competitive or monopolistic, often earn windfall profits when demand and cost conditions change. They, therefore, need to be deducted from total net profits to arrive at pure monopoly profits. Lastly, excess profits may be due to biology, monopolistic selling practices, monopolistic buying practices, or the result of thesis print increase in efficiency, newer manufacturing techniques and expert man­agement. Prof. Rothschild measures the instrumentation, degree of monopoly power as the print, ratio of the instrumentation, slope of a firm’s demand curve to the slope of the industry demand curve. Print? In Figure 7, dd represents the de­mand curve of a firm which is elastic than the industry demand curve DD. Thus. DMP=Slope of dd/Slope of DD= (KL/KR)/(KN/KR) = KL/KN.

Since under pure competition the demand curve of a firm is horizontal, the Rothschild index equals zero. Under pure monopoly there being no difference between firm and industry, this index equals unity. Therefore, the degree of monopoly power exists between zero and unity. The Rothschild measure of the essay 2013, degree of monopoly power is print, vaguer than the essay, other measures. First, it is not possible to estimate the exact shape of the demand curve for the relevant output range. Second, this index requires that all competitors keep their prices constant or they readjust their prices so as to keep them identical with the print, price being charged by the monopolist. Lastly, this measure is trypsin, based exclusively on demand factors and print, neglects supply and cost conditions. Essay # 5. Meaning of Monopoly Price Discrimination: Price discrimination means, charging different prices from different customers or for different units of the same product.

In the words of Joan Robinson: “The act of selling the same article, produced under single control at different prices to different buyers is on the, known as price discrimination.” Price discrimination is possible when the thesis print, monopolist sells in different markets in such a way that it is not possible to sociology, transfer any unit of the commodity from the cheap market to the dearer market. Price discrimination is, however, not possible under perfect competition, even if the two markets could be kept separate. Since the market demand in each market is perfectly elastic, every seller would try to sell in that market in which he could get the highest price. Competition would make the price equal in both the markets. Thus price discrimination is possible only when markets are imperfect. Essay # 6. Types of Price Discrimination: Price discrimination is print, of many types: Firstly, it may be personal based on the income of the essay, customer.

For example, doctors and lawyers charge different fees from different customers on print, the basis of their incomes. Higher fees are charged to rich persons and lower to the poor. Secondly, price discrimination may be based on the nature of the gender, product. Paperback is cheaper than the deluxe edition of the same book, for the former is thesis print, bought by the majority of duke essay questions 2013 readers, and the latter by libraries. Unbranded products, like open tea, are sold at lower prices than branded products like Brooke Bond or Tata tea. Economy size tooth pastes are relatively cheaper than ordinary-sized tooth pastes. In the case of services too, price discrimination is practiced when off-season rates of hotels at hill stations are very low as compared to the peak season.

Dry-cleaning firms charge for two while they clean three clothes during off-season; whereas they charge more for quick service in print, peak season. Thirdly, price discrimination is also related to the age, sex and status of the customers. Barbers charge less for children’s haircuts. Certain cinema halls in small towns in India admit ladies only at biology coursework lower rates. Military personnel in uniform are admitted at concessional rates in print, certain cinema houses. Fourthly, discrimination is also based on the time of service. Cinema houses at certain places, like New Delhi, charge half the rates in the morning show than in the afternoon shows.

Fifthly, there is biology coursework trypsin, geographical or local discrimination when a monopolist sells in one market at a higher price than in the other market. Lastly, discrimination may he based on thesis print, the use of the product. Railways charge different rates for different compartments or for instrumentation different services. Less is charged for the transportation of coal than for bales of cloth on the same route. State power boards charge low rates for industrial use than for domestic consumption of electricity.

Essay # 7. Conditions for thesis Price Discrimination: For price discrimination to exist the following conditions must be satisfied: Price discrimination is possible when there is two cars, some degree of market imperfection. Thesis? The individual seller is able to divide and paper, keep his market into separate parts only thesis if it is imperfect. Customers do not move readily from one market to the other because of ignorance or inertia. (2) Agreement between Rival Sellers: Price discrimination also takes place when the seller of a commodity is a monopolist or when rivals enter into an agreement for the sale of the product at two cars different prices to different customers. This is thesis print, usually possible in the sale of direct services. A single surgeon may charge a high fee for an operation from a rich patient and a relatively low fee from a poor patient. Lawyers charge from their clients in proportion to the degree of risk or amount of money involved in a law suit.

Price discrimination is possible in the case of services because there is no possibility of resale. (3) Geographical or Tariff Barriers: Discrimination may occur on geographical grounds. The monopolist may discriminate between home and foreign buyers by selling at a lower price in the foreign market than in the domestic market. This type of discrimination is known as “dumping”.

It can only be successful if the commodities sold abroad can be prevented from being returned to the home country by tariff restrictions. Sometimes transport costs are so high that they act as a safeguard against essay questions, the return of dumped goods. Discrimination is possible when buyers need the same service in connec­tion with differentiated products. Railways charge different rates for the transport of coal and copper. For they know that it is print, physically impossible for a copper merchant to convert copper into coal for the purpose of transporting it cheaper. It also applies to discrimination based on age, sex, status and income of buyers of gender sociology essay services. For instance, a rich man cannot become poor for the sake of thesis print getting cheap medical facilities. Discrimination also occurs when small manufacturers sell goods made to order. Biology? They charge different rates to different buyers depending upon thesis, the intensity of their demand for the product.

Shoe makers and tailors charge a high price for the same variety from those customers who want them earlier than others. For the same variety of shoes and career research paper introduction, clothes, different buyers are also charged different prices because individual buyers are not in a position to know the price being charged to others. (6) Artificial Difference between Goods: A monopolist may create artificial difference by presenting the same commodity in different quantities. He may present it under different names and labels, one for the rich and snobbish buyers and the other for the ordinary.

Thus he may charge different prices for substantially the same product. A washing soap manufacturer may wrap a small quantity of the soap, give it a separate name and charge a higher price. He may sell it at Rs.20 per kg. as against Rs.18 for the unwrapped soap. (7) Differences in Demand Elasticity: For price discrimination, the demand in the separate markets must be considerably different. Different prices can be charged in separate markets based on differences of elasticity of thesis print demand. Low price is essay 2013, charged where demand is more elastic and high price in the market with a less elastic demand. (4) Price Determination under Monopoly Discrimination: Price discrimination occurs when the monopolist divides the buyers of his commodity or service into two or more groups and thesis, charges a different price to each group. We take the case of a monopolist who sells his commodity in two separate markets. This analysis is based on the following conditions: (i) The aim of the monopolist is to maximise his profits.

He, therefore, produces that output at which his marginal revenue equals marginal cost. Since he sells in two separate markets, he adjusts the quantity such wise in each market that marginal revenues in coursework, both markets are equal. Given the marginal cost of producing the commodity, the most profitable monopoly output will be determined at thesis a point where the combined marginal revenue of both the markets equals the biology trypsin, marginal cost. Or, monopoly profit = MR 1 = MR 2 = MC. If the marginal revenue is greater in market (one) than in market 2 (two), the monopolist will sell less to market 2 and shift this quantity to market 1. This will tend to raise the price in market 2 and lower it in market 1 up to a point where marginal revenues in the two markets are equal. (ii) The number of buyers in each market is very large and there is perfect competition among them. (iii) There is no possibility of thesis print resale from one market to the other. (iv) The monopolist’s demand curve in each market is downward sloping which implies that his monopoly in selling the commodity is well established in the two markets.

(v) Lastly, the most important condition for price discrimination is essay questions, that the elasticities of demand in the two markets must be different. It means that the thesis, price charged in each market must be different from the other. The price will be high in the market with the less elastic demand and low in the market with the high elastic demand. In the comparing, words of Joan Robinson: “The sub-markets will be arranged in ascending order of their elasticities, the highest price being charged in the least elastic market and the lowest price in print, the most elastic market.” Figure 8 illustrates price and output determination under price discrimination. The monopolist sells his product in two markets, 1 and 2. Market 1 has high elastic demand for the product and market 2 has low elastic demand. Accordingly, the demand curve in market 1 is D 1 and essay comparing two cars, its corresponding marginal revenue curve is MR 1 and in market 2 the corresponding curves are D 2 and MR 2 . Panel of the figure shows MR T , the total marginal revenue curve, drawn by the lateral summation of MR 1 , and MR 2 , curves, and MC is the marginal cost curve.

The point of intersection between the MR T and thesis print, MC curves at biology trypsin E determines the equilibrium level of output OQ T . The monopolist divides this output between the two markets by equating the marginal cost Q T E with the marginal revenue of each market. To equal the marginal costs Q T E with MR, and MR, draw a line EA parallel to the horizontal axis. It cuts MR, at E, and MR, at E 2 which become equilibrium points for the sale of output in each market. Thus, the quantity sold in market 1 is OQ, and in market 2 it is print, OQ 2 , so that OQ 1 + OQ 2 equal the total output OQ T . The price in the highly elastic (foreign) market is Q, P, and in the less elastic (domestic) market Q 2 P 2 and Q 2 P 2 Q 1 P 1 Total profits earned by the discriminating monopolist are MEC. We may conclude that under price discrimination the monopolist sells his product in two separate markets with different elasticities of demand so that he maximises his profits when he sells more at a lower price in the foreign market with elastic demand and biology coursework, sells less at a higher price in domestic market with less elastic demand. It follows that when marginal revenues equal and prices differ in the two markets, price discrimination is possible and profitable.

(5) Dumping: International Price Discrimination: Dumping is international price discrimination in which an exporter firm sells a portion of its output in a foreign market at a very low price and the remaining output at a high price in the home market. The home market is controlled or protected and print, the foreign market is free or open. Heberler defines dumping as: “The sale of goods abroad at a price which is lower than the selling price of the same goods at the same time and in the same circumstances at home, taming account of phd thesis differences in transport costs.” The analysis of price-output determination under dumping assumes that: (a) Total output is not fixed, it can be varied; (b) Marginal revenues must be equal in the two markets, and. (c) The foreign market is perfectly competitive and the home market is thesis, monopolistic, so that the demand curve facing the monopolistic in the foreign market is biology coursework trypsin, perfectly elastic and in the home market less elastic. Given, the thesis print, above assumptions, price, output will be determined by the equality of the total marginal revenue curve and sociology, the marginal cost curve of producing the print, commodity. Figure 9 illustrates price-output determination under dumping. The foreign market demand curve faced by the monopolist is the horizontal line PD F which is career research, also the print, MR curve because the foreign market is gender sociology essay, assumed to be perfectly elastic. The demand curve in the home market with a less elastic demand for print the product is the essay two cars, downward sloping curve D H and its corresponding marginal revenue curve is MR^ The lateral summation of the MR H and PD curves leads to the formation of TRED F as the combined marginal revenue curve.

In order to determine the quantity of the product to be produced by the monopolist, we take the marginal cost curve MC which cuts the combined marginal revenue curve TRED F from below at point E. Thus OF output will be produced for sale in the two markets. Since EF is the marginal cost, equilibrium in the domestic market will be established at point R where the marginal cost EF equals the MR H curve. Now OH quantity will be sold at thesis print HM price in the home market and the remaining quantity HF will be sold in the foreign market at OP price. Thus the monopolist sells more in the foreign market with the more elastic demand at a low price and less in essay, the home market with the less elastic demand at a high price. His total profits are TREC. Essay # 8. Benefits of Price Discrimination: Pigou and John Robinson have analysed the print, circumstances under which price discrimination is harmful or beneficial to society. In many cases where there is perfect competition or simple monopoly, production of a certain commodity is not possible because its average cost curve lies above its demand (AR) curve. But under price discrimination the average cost curve is likely to be below the average revenue curve at some point. Thus, if there were no discrimination, society would be deprived of the use of certain commodities and services. As emphasised by Mrs.

Robinson: “It may happen, for research paper introduction paragraph instance, that a railway would not be built, or a country doctor would not set up in practice, if discrimination were forbidden. From the point of view of thesis society, it is only necessary that the concern should make sufficient profits to maintain the efficiency of the research introduction paragraph, plant, and not a profit which would have been sufficient to justify the original investment.” If a doctor charges a uniform fee to all his patients, his income may be so low as to induce him to thesis print, leave his private practice and join some hospital. The community is thus deprived of his services in the particular area where he is practising. If, however, he charges more fee to his rich patients than to the ordinarily, his income is likely to paper on the penalty, be so high as to thesis print, induce him to stay in that area.

Similarly, the existence of railways depends upon their charging higher rates to some customers than to others in the same train. If discrimination occurs under conditions of falling average costs, it is for a paper, actually beneficial to consumers because it results in larger output for the market. Thesis? This is illustrated in Figure 10 where D is the average revenue curve of the discriminating monopolist and d/MR is the ordinary demand curve which becomes the MR curve to coursework trypsin, the discriminator. The average cost curve AC lies above the market demand curve d throughout its length. So no production is possible at any price on the ordinary d curve. But production is print, possible under price discrimination because the demand curve D of the discriminating monopolist lies above the downward sloping portion of the AC curve. Equilibrium is established at E where MC = MR and the output OQ is instrumentation, produced and sold at print QP price and the discriminator g earns RP profits per unit of output. Price discrimination is justified if it helps in promoting economic welfare. Governments usually permit or even encourage price discrimination if it leads to the production of some public utility service, such as telephone, telegraph, or rail transportation. In public utility services, the higher income groups are charged higher prices and biology coursework, the funds so collected may be used to subsidies the goods meant for the poor.

Price discrimination is print, also beneficial to society for it helps in reducing inequalities of personal incomes when higher prices or fees are charged to the rich than to the poor. In public utility services, the higher price charged to the higher income groups serves as a tool for gender income redistribution because the government may use these funds to subsidies the lower income groups. Thus price discrimination helps in promoting social warfare. Price discrimination is not only beneficial but is also justified when a country sells a commodity cheaper abroad than at home. If a foreign market is elastic, more will be sold at a lower price.

It means expansion in output, the use of larger resources of the economy, more employment and income to the community. Price discrimination of this type proves particularly useful if the industry obeys the law of thesis print decreasing costs. It implies the realisation of larger economies of scale, lowering of costs and prices to the home market also. It is instrumentation, possible that without price discrimination the commodity would not have been produced at print all. In that case, had it been imported from abroad, it would have cost the economy more both in pecuniary and real terms. Some of the country’s resources being used for the production of this commodity would have remained idle and instead of receiving income from abroad, its wealth would have floated to the other country. May be, economies of scales could be realised only when the monopolist started producing for the foreign market. Hence price discrimination is justified.

Essay # 9. Introduction? Harms of Price Discrimination : Price discrimination is, however, harmful to society when it leads to thesis, mal-distribution of resources as between different uses with the result that output, employment and income are not maximised. It may lead to the diversion of resources from their socially optimal uses. It leads to exploitation when people are made to pay higher prices for smaller quantities. Even on international plane when price discrimination takes to form of dumping, it. Deliberately shatters the economy of the career paper paragraph, other country by thesis undercutting the foreign producers and forcing them to close their business. Such discrimination is highly undesirable. Essay # 10.

Control and Regulation of Monopoly: There are three methods of coursework trypsin controlling and regulating monopoly : First, government may adopt anti-monopoly laws and restrictive trade practices legislation. Second, government may either run natural monopolies directly or regulate monopolies by imposing price ceilings. Third, government may regulate monopolies through taxation. Besides, there are certain fears that prevent the monopolist from charging a very high price in order to earn large super-normal profits.

They are discussed as under. (1) Fear of Potential Rivals. The fear of thesis potential competitors may prevent a monopolist to charge a very high price to his customers. If he sets a vary high price, he will earn large super-normal profits. Attracted by career paper introduction paragraph these monopoly profits, new entrants may force themselves into the monopolised industry. The monopolist, being averse to the entry of new firms, would prefer to charge a reasonable price and thus earn only a modest profit. (2) Fear of Government Regulation.

The same consideration applies to potential government regula­tion. The monopolist is well aware that charging unusually high prices or earning abnormal profits would attract the attention of the government. Thesis? Rather than risk government regulation, he may voluntarily fix a low price, and earn less monopoly profit. (3) Fear of Nationalisation. The fear of nationalisation also prevents the monopolist to wield an absolute monopoly power. If the product or service which the monopolist provides is a public utility service, there is every likelihood of the state taking over the monopoly organisation in public interest. This consideration may prevent the monopolist from charging too high a price. (4) Fear of Public Reaction.

The monopolist is career introduction paragraph, also aware of public reaction if he charges a very high price and earns huge profits. Voices may be raised against print, the monopoly firm in parliament to press for anti- monopoly legislation. (5) Fear of Boycott. Gender? People may even boycott the thesis, use of monopolised service and start their own service instead. For instance, if in a big city taxi operators combine to charge high rates, people may boycott taxi service and even start operating their own services by instrumentation forming a cooperative society. Naturally, such a fear compels monopoly firms to charge reasonable prices and earn only print nominal profits. (6) Fear of Substitutes. Then there is the fear of phd thesis substitutes. In fact, the fear of substitutes is the most potent factor which prevents monopoly firms from charging very high prices and thereby earn super-normal profits. The monopoly product has some substitute though it is not a close substitute. Therefore, the fear of the emergence of thesis very close substitutes is always uppermost in the mind of the duke questions, monopolist which acts as a restraint on his absolute power.

(7) Differences in Elasticities of Demand. The differences in thesis, the short-and long-run elasticities of demand for the monopoly product also limit monopoly power. Instrumentation? In the thesis, short-run, the essay questions, monopolist can charge a very high price because customers take time to print, adjust their habits, tastes and incomes to some other substitutes. The demand for the monopoly product is, therefore, less elastic in the short-run. But in the long-run, the fear of public opinion, emergence of substitutes, government regulations, etc. will force the monopolist to set a low price. He will view his demand curve as elastic, and sell more at a low price.” (i) Control of Monopoly through Legislation: Government tries to control monopoly by anti-monopoly laws and titles paper on the penalty, restrictive trade practices legislation. These measures tend to: (i) Remove restrictive trade practices and fixation of high prices; (ii) Reduce the incidence of market-sharing agreements; (Hi) Remove unfair competition; (iv) Restrict the control of very large share of the market; (v) Prevent unfair price discrimination; (vi) Restrict mergers in order to avoid market domination; and. (vii) Prohibit exclusive agreements between the producer and print, retailer to the detriment of other traders.

(ii) Control of essay two cars Monopoly through Price Regulation: We now take the case where the government feels that monopoly price is very high and tries to bring it down by price regulation. Thesis Print? To regulate monopoly, the government imposes price ceiling so that monopoly price should be near or equal to competitive price. This is done when the government appoints a regulating authority or commission which fixes a price for the monopoly product below the monopoly price, thereby increasing output and lowering the price for the consumer. This is biology coursework trypsin, illustrated in Figure 11. Before the regulation of monopoly price, the monopolist is making PF x OM profits by selling OM output at MP (=OA) price. Suppose the state regulatory authority sets the maximum price QK (=OB) at the competitive level. The new demand curve facing the monopolist becomes BKD. Print? Its corresponding MR curve becomes BKHMR. Now the titles for a penalty, monopolist behaves as a perfectly competitive producer. He produces and sells OQ output at point where the MC curve cuts the thesis, BKHMR curve from below.

As a result of price regulation, the monopolist increases his output to OQ from OM. He still makes super- normal profits equal to trypsin, KG x OQ that are smaller than the monopoly profits (PF x OM) at the unregulated price MP. If the price regulatory authority fixes the monopoly price WS equal to the average cost where the thesis print, AC curve cuts the D/AR curve at point S, the monopolist would be able to place a greater quan­tity of output OW in the market. At this level, the monopolist would earn only normal profits. In such a situation, the monopolist would continue to produce so long as he is getting a fair return on his capital investment. But the regulatory authority cannot force him to increase output beyond OW because the monopolist would not be operating at a loss.

(iii) Control of questions Monopoly through Taxation: Taxation is another way of controlling monopoly power. The tax may be levied lump-sum without any regard to the output of the monopolist. Or, it may be proportional to the output, the amount of tax rising with the increase in output. By levying a lump-sum tax, the government can reduce or even eliminate monopoly profits without affecting either the print, price or output of the product.

A lump-sum tax imposed on the monopoly firm is shown in Figure 12 where AC and MC are the average cost and marginal cost curves before the two cars, tax is levied. The monopolist earns APRT super-normal profits by selling OM product at MP Price. The imposition of the lump-sum tax is, in thesis, fact, a fixed cost to the monopoly firm because it is independent of research paper paragraph output. It, therefore, raises the average cost by the amount of the tax TC so that the AC curve shifts upward as AC ] but the marginal cost remains unaffected. So the imposition of a lump-sum tax has the effect of print reducing monopoly profit from APRT to APBC. The entire burden of the tax will be borne by phd thesis the monopolist himself.

He cannot shift any part of print it to his customers at any stage by raising the price and reducing output. Since the monopolist’s marginal cost curve and the marginal revenue curve remain unaffected by the tax imposition, any change in the existing price- output combination would only lead to losses. The government can also reduce monopoly profits by levying a specific or a per paper death penalty unit tax on the monopolist’s product. A per unit tax on monopoly output has the effect of shifting both the average and marginal cost curves upward by the amount of the tax. Figure 13 illustrates this case. AC and MC are the monopoly firm’s average cost and marginal cost curves before the tax imposition. It earns BPGK monopoly profits by selling OM quantity of the product at UP price. Suppose a the government levies a specific tax which being a variable cost to the monopoly firm tends to shift the cost curves upward to AC 1 and print, MC 1 . The monopolist’s new equilibrium point is phd thesis, E 1 where the MC 1 curve cuts the MR curve. The new price is M 1 P 1 MP (the old price) and the output is thesis, OM 1 OM (the original output). In this case, the monopolist is able to shift a part of the tax burden to consumers in the form of higher price and a smaller output of the product.

Since the monopolist has to bear a portion of the tax burden him, his profits are also reduced from BPGK to RP 1 CF. Such a tax does not help in regulating monopoly price and output. For the research paper introduction, higher, the demand elasticity of tax, the higher the print, price for the product and the lower the output. The ultimate loss will be borne by the public rather than by duke essay questions 2013 the monopolist. Welcome to EconomicsDiscussion.net!

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