Week 2 Economics Essay Example | Topics and Well Written Essays - 750 words

Week 2 Economics - Essay Example In such a situation, an increase in price causes the revenue earned by suppliers to go up and vice versa. In contrast, the price elasticity is termed elastic whenever the change in demand of a quantity is greater in comparison to a change in price. in this situation, an increase in price causes the revenue to fall and vice versa. In a perfectly elastic situation, a change in price will cause demand to fall to zero thereby bringing the corresponding revenue to zero. However, when the situation resembles a perfectly inelastic curve, a change in price has no influence on the quantity demanded and the demand curve is a vertical line, which is in clear violation of the law of demand. In a perfectly competitive market, a number of producers are producing identical goods with no product differentiation. Therefore, a producer cannot set any price as desired as doing so would put them out of business due to availability of substitutes. Accounting profit is price minus costs for all processes that help bring a product or service to the market. Economic profit is the money earned by investor as a result of their investments. As such, it does not have anything to do with the way firms use that investment to produce goods and generate accounting profit. Economic profit can be negative even when accounting profit is in the green zone. Short term decision making is driven by the immediate demand and supply forced in the market to which the firm may not be able to make major investments or changes and may have to use present capacities to produce the maximum quantity. Long term decisions require time to implement and must be planned in advance taking the long term demand and supply into consideration. The combination of price and the production function gives the cost curve. The total cost curve is the amount spent on all fixed and variable costs while the

Meaning of my quote (please look in the details box for the quote) Essay

Meaning of my quote (please look in the details box for the quote) - Essay Example I think that the connection between a leader and the followers is based on the spiritual foundations. The leader sends messages to the followers verbally. This is the most identifiable and easily recognizable form of communication and interaction between the leader and the followers. However, there is something more to it that just the followers can feel and is not overtly visible to the outsiders i.e. the emotional connection. Whatever a leader says or does leaves an impression on the followers. The followers are best in the position to comply with the instructions of the leader when they know what the basis of the demand from the leader to behave or act in a certain way or do certain things is. In order for an individual to be effective as a leader, it is imperative that he/she first earns the trust and confidence of the followers. The leader accomplishes this by assuring the followers that if they comply with the instructions of the leader and do as he/she asks them to, he would lead them to the results they want. Followers only abide by the leader’s instructions when they see their personal benefit in doing this. The personal benefits of followers vary depending upon what are the conditions or context in which they are following the leader. In an organizational setup, subordinates follow the instructions of the management because their wages are decided and performance is evaluated according to their compliance. In the context of a country, people pay taxes to the government because they are confident that this money would be used to provide them with more benefits. My quote emphasizes upon one main objective of leadership i.e. inspiring the followers. There are many ways in which a leader can inspire the followers. Different leaders have different strengths using which they inspire the followers. For example, certain leaders have good vocal skills and inspire the followers through their motivational speeches. Likewise, there are certain leaders