ECO..Profits and morality - Assignment Example

Only on StudentShare

Extract of sample
ECO..Profits and morality

This is because there will no longer be a motivation to keep doing paying or else the electric supply will be cut off. However, in this case of freedom to decision-making involving consumption has led to a negative outcome reducing the wellbeing of the capitalistic electric company that is there for profit.
Another example mentioned involves Ford Pinto model of car and is a quite well-documented incident regarding the defective rear engines of the car that could catch fire following collisions (Sidewinder77, 2007b). If people were given the freedom to decide about the production and buying variables of the car, most individuals would not be willing to pay a higher price for a safer car. This decision would ultimately increase the risk of being susceptible to death by a faulty car because people, if given the freedom to decide, would not always choose rationally thereby reducing overall wellbeing of the ...
Download paper


In the example regarding payment of bills, Milton Friedman asks the audience to assume for a moment that the electric company does not cut the connection upon non-payment of bills…
Author : harveykale

Related Essays

Maximizing profits in market structures
Monopoly – The monopoly is the only producer of a particular good or service; therefore, it has a downward-sloping demand curve. If the firm sells its product at a high price, it will be able to sell only a small quantity because few people would be able to afford it, and there are not substitutes. If the firm would wish to sell more units of the product, it will have to lower its prices (Mankiw, 2009). The type of product may be homogeneous or differentiated and the monopoly firm has full control over its price (Jain & Khanna, 2009). Oligopoly – An oligopoly is a market with only a few...
4 pages (1004 words) Essay
Eco Business Essay
Marginal Cost Marginal cost is the additional cost incurred per unit of quantity being produced. As the adjoining diagram shows, total cost of production rises slowly at the beginning, so that the marginal cost curve is downward sloping in nature. It reaches the minimum point when the slope of TC is the flattest. Eventually, when MC starts rising when TC begins a steep rise during the latter parts of the production process. Thus, while TC is inverted S-shaped, MC is found to be U-shaped as the diagram depicts (Samuelson, 2005, p.126). Profit Maximisation Profit is the difference between the...
3 pages (753 words) Essay
Eco Bus Business Essay
Hence, through regulatory agency, it monitors an industry’s prices and product to ensure that monopolies do not develop and consumers are not badly exploited. Industrial regulation is mainly created for the following market structures: monopoly and oligopoly. Monopoly exists where a single entity produces and sells a given product or service. Oligopoly exists where some companies choose to interact strategically in order to take control of the market power. These entities are unique in their ability to coordinate goods, and control prices and sale of goods, leading to imperfect competition....
3 pages (753 words) Essay
Morality in Business Essay
But here, the key fact to be noted is that, the existing laws have authorized these false claims, to a certain extent. Here, the obvious implication is that most of the businesses need to adhere to ethics, only to the extent dictated by the law. Beyond that, most of the entities are in no way willing to tread on the path of morality, lest their commercial motives are compromised. (1) Whether staunch adherents of morality like it or not, but the fact is that businesses cannot afford to lay excess emphasis on ethics, barring the legal stipulations. This is even more relevant in this contemporary...
4 pages (1004 words) Essay
Eco Tourism
However, this niche market of the tourism sector has come under scrutiny for the positive and negative implications it presents. We will examine the positive and negative factors of ecotourism by looking at the political, economic, social and technological factors of ecotourism, and how they can increase visitor arrivals....
6 pages (1506 words) Case Study
Markets, Profits and Prices
If revenue is less than total variable costs, a firm should stop operating, even in the short run (Barron, Lynch & Blanchard, 2003, p.241)....
6 pages (1506 words) Case Study
Got a tricky question? Receive an answer from students like you! Try us!