The System Of The Law Of Marine Insurances - MyAssignmenthelp.com

Question: Examine about the System Of The Law Of Marine Insurances. Answer: Presentation In global exchange, the Bill of Lading is a key record for purchasing and selling, and furthermore for those identified with account and transport. Its utilization is imperative for crafted by the two exporters and merchants, just as import/export officers and ships, cargo forwarders, transporting organizations, and so forth. In an offer of merchandise contract, carriage is regularly the last advance. Frequently, the shipper is the merchant of the load. Over the span of agreement of carriage, title and hazard to the products regularly passes. The general assumption is that when the title to the products passes the hazard additionally passes, notwithstanding, this assumption is rebuttable (PARK, 2017). Where both hazard and title pass is subject to the aim of the gatherings just as the provisions of the agreement of offer. There are various occasions when hazard and title passes and these are ; if the deal is (without fob ready) the purchaser bears all the danger of harm or misfortune to the products. Then again, if the agreement is CIF or CF which means money, protection and cargo , the merchant should pay for conveyance cost, however the danger of harm or loss of merchandise goes to the purchaser when the products are stacked past the boats rail (Thannapan, 2007). Realities of the case Kyokuyo Company restricted is the inquirer for this situation and cases that the respondent, Maersk Line, conveyed harmed merchandise. The harmed great which were gotten in three holders however held under raised temperatures during taking care of and carriage. The conveyed merchandise were solidified flanks and packs as freight and conveyed to Cartagena in Spain. For the situation, Maersk lines obligation was significantly represented by terms and states of current carriage under fused articles 1 to 8 of the Hague-Visby Rules. Kyokuko Co Ltd accommodated the issue of a bill of filling on solicitation and request however no such record was given. Therefore, non-debatable waybills were given instead of the bill of filling after much interest from the inquirer (PARK, 2017).This was a variety of the agreement understanding which was not questioned by Maersk Line. The conflict came as the gatherings differ with regards to which rules applied and concerning how the principles of the agreement neglected to be applied. The two gatherings differ with respect to which rules applied which was either the Hague-Visby or the Hague rule. They likewise differ on the important unit or bundle of the carriage. End Indeed I concur with the adjudicators remark; this is on the grounds that Since the contentions were not indistinguishable, more up to date runs and more established standards became an integral factor. The prerequisites under the principles initially thought about the carriage under the bundle or unit. This was both under the Hague rules and the Hague-Visby rules. There was no adjustment in significance of a unit or bundle in article IV rule 5(a) of the Hague Visby rule. Thusly the petitioner was to be granted for the harmed merchandise shipped by Maersk line. Both the Hague rule and the Hague-Visby rule applied for this situation. References PARK, J. (2017).SYSTEM OF THE LAW OF MARINE INSURANCES,. [S.l.]: FORGOTTEN BOOKS. Thannapan, J. (2007).Marine law. New Delhi: Anmol Publications.

Case 33 †the Casino Industry in 2011

Case 33 †The Casino Industry in 2011 Brant Davis Problem Summary The Las Vegas and Atlantic City areas have lost incomes as of late. Notwithstanding the financial log jam, these betting areas are likewise confronting new rivals in the market that are giving appealing decisions to the clients. Despite the fact that there are some outer powers outside their ability to control, it appears that engaging quality and availability are significant center regions for these urban communities. Investigation Using the SWOT examination, we can get an expansive image of the Las Vegas and Atlantic City locations.Some of the qualities of these two urban communities are; the assortment of amusement they offer, the lodging accessible, the climate conveyed, and giving a benchmark of value administration expected by the clients. Shortcomings of Las Vegas and Atlantic City are that they can be vigorously influenced by changes in the economy and the rising quantities of contenders. As the quantity of contenders rise, Las Vegas and Atlantic City have lost a portion of their business to places that are basically nearer to the clients home.This has opened up certain open doors for these gambling club goliaths to make their areas progressively alluring and available to the clients and take back a portion of the lost business. Probably the biggest danger to Las Vegas and Atlantic City areas is that it is getting a lot simpler for the clients to bet without going far. Actually, presently the clients can bet online right from their homes. Choices There are a few blueprints these urban communities can take to develop. The first is make it considerably simpler to get to their locations.There were times in the past when Las Vegas and Atlantic City used to fundamentally get the client and bring them into town. In the event that it was simpler for the clients to contact them, they may reclaim a portion of the business lost to progressively nearby gambling clubs. The drawback to that obviou sly is the expense of movement would then be moved to the club urban areas. The genuine bet here is that there are consistently individuals simply searching for a free get-away, and simply bringing them into town doesn’t ensure that they will spend a ton while remaining there.Another elective is that Las Vegas and Atlantic City could both spotlight their endeavors on the Legislation that has been shielding betting from being lawful on the web. In spite of the fact that this would require a great deal of utilized lobbyists, attorneys, and Politians to agree with them. The con to that strategy would that it is difficult to corner the online market so late in the game. At last, Las Vegas and Atlantic City could concentrate on what it can offer to the clients that different areas don’t. RecommendationsThough betting is such a significant piece of their income, they should concentrate much more on acquiring the client for the encounters that can’t be found anyplace e lse. This would require considerably more commercials that offer accentuation to the highlights of the city, and not simply the gaming machines. Despite the fact that the retro rebranding of Las Vegas as â€Å"Sin City† appeared the legitimate move, they have to make it the spot for anybody to come and appreciate. Since Atlantic City has such a significant number of individuals inside driving separation, they should concentrate more on getting families and acquiring them as well.Often a family will go on just one significant excursion for each year. Why not have that area be a city that simply happens to have betting. Furthermore, MGM Mirage ought to be the banner gambling club for income. Las Vegas and Atlantic City need to escape from the focal point of betting and make themselves the diversion capitals of the east and west drifts. They have to publicize their urban communities as the spots for individuals to get away and experience something that can’t be seen at ho me.They additionally need to draw in individuals with limits and free complimentary advantages so when the clients show up, they can legitimize burning through cash on the amusement. At last, they have to have tolerance while remaining forceful. The economy will undoubtedly improve, yet they can’t simply toss cash into new structures that individuals won’t travel to. They should slow a portion of the development for the following hardly any years and spotlight on publicizing what they bring to the table. Clients shouldn’t need to find out pretty much all the incredible stuff by showing up there, they ought to go there due to all the extraordinary stuff they have just found out about.

Humorous Essay Topics

<h1>Humorous Essay Topics</h1><p>Humorous exposition themes are a successful method to come to a meaningful conclusion and are really a necessary piece of the field of experimental writing. They permit the exposition author to utilize the cleverness in their composition to charm their perusers and simultaneously, to make enthusiasm for their work. Yet, would you be able to consider humor a successful method to make a point?</p><p></p><p>At the day's end, we as a whole need to engage ourselves or others, however there is consistently an alternate point to be made, and with regards to paper themes, the right method to make a point recorded as a hard copy is to abstain from utilizing words that will estrange your peruser. In this article I will offer some entertaining paper points that you can investigate in the event that you have any utilization for them.</p><p></p><p>Humor can complete two things. In the first place, i t will engage your perusers while additionally making them consider a specific issue, along these lines inciting thought.</p><p></p><p>Second, the cleverness in a bit of composing that utilizations amusingness will cause to notice the sentence structure, spelling, accentuation and spelling blunders. In the event that your target group possesses little energy for such issues, at that point you will be fortunate to get one to peruse your essay.</p><p></p><p>Something else to consider when you are building up your paper theme is the enthusiasm of your target group. Is it expected to be a good time for a wide crowd, or is it a funny piece intended to be perused by a particular gathering of individuals? The previous gathering probably won't acknowledge humor that is dull and rough, while the last gathering may like it since it is clever. Whatever the target group, ensure that the cleverness in your piece requests to them.</p><p> </p><p>Another interesting point when building up a subject is to think about the topic of your paper. A subject will guarantee that your article depends on a person or thing and will make your perusers progressively keen on perusing your work. As should be obvious, a silly exposition theme is a practical method to compose an instructive paper. In any case, how would you cause your perusers to appreciate the cleverness? This is the place the guidance of a diversion master comes in handy.</p>

Are You Sure? Can the Student Cheat If the Teacher Writes Indecipherable on an Essay?

<h1>Are You Sure? Can the Student Cheat If the Teacher Writes Indecipherable on an Essay?</h1><p>Many understudies and instructors will in general be under the misinterpretation that the understudy can't cheat if the educator composes vague on an article. Notwithstanding, numerous individuals would have questions that the understudy can swindle. In any case, there are events when a specific subject or understudies can cheat if the instructor composes uncertain on an essay.</p><p></p><p>The subject of cheating is a mind boggling issue that should be completely explained. A decent understudy will comprehend the idea of the scholastic composition and will plainly bring up the point that equivocalness in the article isn't required.</p><p></p><p>So, what might be the main problem here? Indeed, there is a place that on the off chance that the letter writer composes vague on the article, at that point the letter can not be tr usted. Thus, it isn't feasible for the educator to compose vague on the essay.</p><p></p><p>However, you should not mistake composing questionably for composing not at all subtle. In the last case, you might be composing something that may not be very clear. Recorded as a hard copy vague on an exposition, the educator is explaining to you this is a convoluted composition. This isn't what you need.</p><p></p><p>Your issue may be that you may be confounded by the complexities that are engaged with composing a paper. This is the reason numerous understudies and educators will in general wrongly exaggerate the scholarly writing.</p><p></p><p>However, it is important to feature that a simple perusing of a paper won't decrease the trouble of the composition. This is because of the way that on the off chance that an understudy peruses the paper in a simple way, at that point there isn't a lot of clearness that is inclu ded by the unpretentious distinctions.</p><p></p><p>This is the reason in the event that you are told by the educator that the specific exposition is composed vague then you need to recognize this isn't an issue. This should be comprehended and explained properly.</p>

Why Almost Everything Youve Learned About Which of the Following Topics Is Most Likely to Be Narrow Enough to Be Deve Is Wrong and What You Should Know

<h1>Why Almost Everything You've Learned About Which of the Following Topics Is Most Likely to Be Narrow Enough to Be Deve Is Wrong and What You Should Know </h1> <p>The real mystery is to choose a theme you're familiar with and open to expounding on. Thusly, it is smarter to dispense with this concern and simply reuse considerations, contemplations and sources assuming there is any chance of this happening. Remember, on the off chance that you select a subject that intrigues you, you will enjoy the examination procedure impressively more! To begin with it is an awesome idea to consider that what may suit such an article you're going to start composing. </p> <h2> Where to Find Which of the Following Topics Is Most Likely to Be Narrow Enough to Be Deve </h2> <p>By method of model, here's the manner by which your wide subject of natural issues might be drawn closer from different points of view. On the off chance that your point is to get into Bitcoin programming, have a live workshop with Jimmy Song. It's your decision to pick a specific concentration in your answer. At the point when you are needing a subject to choose for an article, there are numerous ways you may do that. </p> <p>As soon as your rundown is done, you can start investigating the various themes in more profundity. Consider Your Interests in the event that you have not been expanded a subject or you don't possess a rundown of expected points to pick from, you could choose something which bids to your senses and interests. There are a lot of themes that you're ready to pick in light of such sorts of wide Independent Writing questions. In the event that your preferred subject is much the same as one they are a pro in or even have a PhD in, at that point it's a smart thought to keep away from it except if you might want to make your venture extra testing! </p> <h2> Finding the Best Which of the accompanying Topics Is Most Likely to Be Narrow Enough to Be Deve </h2> <p>It will suck, obviously, however you are going to realize whether you're having a fabulous time. No one would be here on the off chance that it was not for an extraordinary decent collaboration. There a re proposals for a collection of occupations that is going to prop you up securely all through the activity day. Our group has conceived the following rundown of thoughts demonstrating the various strategies that can be used to choose the most appropriate point for your task. </p> <h2>What About Which of the Following Topics Is Most Likely to Be Narrow Enough to Be Deve? </h2> <p>D. you will get a bigger exhibit of results, a couple of which you might not have gotten utilizing only one. A. Before you find the source B. In all actuality Wikipedia is a reliable source that will furnish you with a wide appreciation of any subject and spare you the calculable amount of time required to look at all the more substantial weight sources. At the point when you find the source D. </p> <p>Let's gander at an example task. So your initial step must be to take a gander at the guidelines you've been given. While a few investigations have demonstrated advantage, the information aren't convincing enough for CDC to give certain proposals right now. Recorded here are normally prompted. </p> <p>Knowing where to shop and what things to search for can assist you with getting the best footwear for you. You may feel that you're rolling out a minor improvement. Be that as it may, it might be the wrong way to deliver this change. At the point when you find a style that feels incredible, looks great, and is best for your calling, take a gander at putting resources into more than 1 sets. The styles depicted here are just a portion of the numerous alternatives when looking for agreeable shoes to wear to carry out the responsibility. </p> <h2>Which of the Following Topics Is Most Likely to Be Narrow Enough to Be Deve - the Story </h2> <p>It would set aside an excessive amount of effort to come in genuine contact with the gaming industry, which is significant for making sense of whether you're truly on the fitting track . A combination of strong hues are accessible, and a few examples. Curve support is in like manner a significant component to consider. The first incorporates too wide a determination of individuals and doesn't characterize exactly what achievement involves. </p> <p>If you persuade that you could convey, managers will gracefully you with possibility. It is useful to limit the circumstance. In a few cases it's gentle and before long passes. This is normal yet conventionally it's not known why it doesn't carry out the responsibility so well. </p> <p>Their work in forestalling drug-safe contaminations in people hasn't been set up. A medication which reduces the amount of corrosive made in your stomach is a run of the mill treatment and generally functions admirably. In the event that apparently a food is causing side effects at that point endeavor maintaining a strategic distance from it for quite a while to check whether indications improve. Exploration has exh ibited that diminishing worry in the home likewise has a basic job in avoidance. </p> <h2> Things You Should Know About Which of the Following Topics Is Most Likely to Be Narrow Enough to Be Deve</h2> <p>Losing some weight may ease the markers. Side effects may ease in case you're a smoker and stopped smoking. Tests are not regularly fundamental on the off chance that you have ordinary side effects. </p>

Good Capstone Research Paper Topics

<h1>Good Capstone Research Paper Topics</h1><p>Capstone explore paper themes assist understudies with advancing in their investigations. The subjects secured may go from different regions of science to wellbeing, social and lawful issues. So it is crucial that the understudy has all the essential information about a specific theme before beginning.</p><p></p><p>It is likewise a smart thought to choose a point on which an understudy can have a sentiment. They should then arrangement and direct an examination on the point and archive all that they find on it.</p><p></p><p>There are a few kinds of research paper themes and it is a smart thought to pick one that best suits the subject of study that the understudy needs to seek after. They should choose the point ahead of time and have the significant data before they start their exploration. Composing such a paper isn't troublesome, yet it requires loads of persistence and great arranging. The accompanying data will assist understudies with picking a decent point for their capstone inquire about paper.</p><p></p><p>Students keen on examining science ought to consider the science capstone look into paper themes on endurance senses, the regular history of creatures, and the biology of plants. These subjects spread numerous significant organic procedures that people can't concentrate without anyone else. Also, they give helpful data to scientists should have the option to clarify these procedures and their pertinence in life to get acknowledgment for the work they have done.</p><p></p><p>Students intrigued by the clinical or medicinal services capstone investigate paper points may consider irresistible maladies, sexual wellbeing, sustenance, and human turn of events. These points manage issues that have wide running ramifications for the patients who become casualties of such sicknesses. On the off chance that understudies need to contemplate morals, they may look over the different subjects on polished skill, duty, trust, and network administration. These points spread the virtues of individuals in the field of medicinal services and add to the personal satisfaction of patients and the network at large.</p><p></p><p>Students keen on the emotional wellness capstone inquire about paper subjects ought to browse the themes on self-administration, care and treatment of the old, and social consideration. These points unite various issues identified with the maturing populace and emotional well-being. The mental parts of maturing will be managed in the theme on perspectives toward maturing. Also, social connection and maturing will be brought out in the points on social training and home care.</p><p></p><p>Students keen on the social brain research capstone explore paper subjects ought to think about the themes on publicizing, analysis, inven tiveness, discouragement, ethnic assorted variety, neighborliness, and child rearing. These points center around explicit parts of human connections with others. For instance, in the point on analysis, understudies should know about various types of basic reasoning and break down the effect of different imaginative sorts of analysis on a gathering of people.</p><p></p><p>Students intrigued by the administration of wellbeing and social consideration should contemplate the issues of patient correspondence, the board, and dynamic. Subjects incorporate the connection between the social and physical conditions and the medicinal services specialist's job in keeping up solid situations. Finally, it is additionally critical to pick themes that spread various parts of work in the medicinal services sector.</p>

Supply and Demand Assignment - Free Essay Example

Supply and demand Demand for an item (such as goods or services) refers to the market pressure from people trying to buy it. Buyers have a maximum price they are willing to pay and sellers have a minimum price they are willing to offer their product. The point at which the supply and demand curves meet is the equilibrium price of the good and quantity demanded. Sellers willing to offer their goods at a lower price than the equilibrium price receive the difference as producer surplus. Buyers willing to pay for goods at a higher price than the equilibrium price receive the difference as consumer surplus. The laissez-faire principle expresses a preference for an absence of non-market pressures on prices and wages, such as those from government taxes, subsidies, tariffs, regulations (other than protection from coercion and theft), or government-granted or coercive monopolies. Friedrich Hayek argued in The Pure Theory of Capital that the goal is the preservation of the unique information contained in the price itself. General equilibrium theory has demonstrated, with varying degrees of mathematical rigor over time, that under certain conditions of competition, the law of supply and demand predominates in this ideal free and competitive market, influencing prices toward an equilibrium that balances the demands for the products against the s upplies. At these equilibrium prices, the market distributes the products to the purchasers according to each purchasers preference (or utility) for each product and within the relative limits of each buyers purchasing power. This result is described as market efficiency, or more specifically a Pareto optimum. This equilibrating behavior of free markets requires certain assumptions about their agents, collectively known as Perfect Competition, which therefore cannot be results of the market that they create. Among these assumptions are several which are impossible to fully achieve in a real market, such as complete information, interchangeable goods and services, and lack of market power. The question then is what approximations of these conditions guarantee approximations of market efficiency, and which failures in competition generate overall market failures. Several Nobel Prizes in Economics have been awarded for analyses of market failures due to asymmetric information. By preferring the support of domestic to that of foreign industry, he intends only his own security; and by directing that industry in such a manner as its produce may be of the greatest value, he intends only his own gain, and he is in this, as in many other cases, led by an invisible hand to promote an end which was no part of his intention. Nor is it always the worse for society that it was no part of it. By pursuing his own interest [an individual] frequently promotes that of the society more effectually than when he really intends to promote it. I have never known much good done by those who affected to trade for the [common] good. Critics, such as political economist Karl Polanyi, question whether a spontaneously ordered market can exist, completely free of distortions of political policy; claiming that even the ostensibly freest markets require a state to exercise coercive power in some areas à ¢Ã¢â€š ¬Ã¢â‚¬Å" to enforce contracts, to govern the formation of labor unions, t o spell out the rights and obligations of corporations, to shape who has standing to bring legal actions, to define what constitutes an unacceptable conflict of interest, etc. The highest goals of a market economy are economic freedom and efficiency. Individuals and businesses are left at liberty to decide what, how and for whom to produce. The producers of goods and services make these decisions based largely on consumersà ¢Ã¢â€š ¬Ã¢â€ž ¢ spending decisions. Because you are free to buy what you want. Producers must compete for your dollars. This competition means that you, the consumer, have many choices. It also forces producers to use resources efficiently. If they do not, a competitor will find a way to offer the same good or service at a price that consumers will be more willing to pay. ADVANTAGE the market produces a wide variety of goods and services to meet the consumers wants the free market responds quickly to peoples wants the market system encourages the use of new and better methods and machines to produce goods and services Disadvantages: factors of production will be employed if only its profitable to do so the free market can fail to provide certain goods and services the free market may encourage the consumption of harmful goods the social effects of production may be ignored the market system allocates more goods and services to those consumers who have more money than others Australiaà ¢Ã¢â€š ¬Ã¢â€ž ¢s resources are used and what things are produced: à ¢Ã¢â€š ¬Ã‚ ¢ Using government legislation or laws. Government legislation affects what consumers and firms can and cannot purchase (e.g. laws about wearing bike helmets and purchasing and consumption of tobacco and alcohol). à ¢Ã¢â€š ¬Ã‚ ¢ Discouraging socially undesirable types of goods and services. Governments may limit the production or consumption of some socially undesirable or dangerous goods and services purchased by ill-informed buyers (e.g. hard drugs, guns, pollution, chemicals, prostitution, pornography, alcohol and tobacco for those under age). Apart from using laws and bans, special taxes may be put on particular things to discourage consumption (e.g. taxes on alcohol and tobacco), along with negative advertising to repel buyers (e.g. cigarette packaging showing illness caused by smoking). à ¢Ã¢â€š ¬Ã‚ ¢ Encouraging socially desirable production. Sometimes socially desirable an d necessary types of goods and services are under-produced or are too expensive for many people to afford. In this situation, governments encourage the production or consumption of these goods and services (for example, public housing, hospitals, solar panels, transport, education, health insurance, the wearing of seat belts and bicycle helmets). Using money raised from taxes, the government itself can provide community services to users, below cost or free of direct charge. Sometimes subsidies or cash payments are made to encourage producers or consumers, or tax concessions may be offered as a financial incentive (for example, the tax rebate for those taking out private health insurance). à ¢Ã¢â€š ¬Ã‚ ¢ Promoting strong competition and efficiency. Strong competition in markets generally helps to increase efficiency, lower prices, and improve the quality of goods and services produced. However, in monopoly and oligopoly markets, competition is weak and sometimes resources are us ed inefficiently. To correct this, the government can try to increase the level of competition by cutting tariffs (i.e. taxes added onto imports to protect local producers). In Australia, the government established the Australian Competition and Consumer Commission, which enforces the Competition and Consumer Act of 2010 designed to outlaw the anti-competitive activities of firms. This will be discussed further on p. 20. In addition, figure 1.17 on p. 14, indicates that, apart from the operation of the market and government intervention, there are also other institutions that influence the type of goods and services produced (i.e. the à ¢Ã¢â€š ¬Ã‹Å"whatà ¢Ã¢â€š ¬Ã¢â€ž ¢ question) including the media, minority political parties such as the Greens, and other pressure groups. Q2 b. Monopolistic competition, a type of imperfect competition such that many producers sell products that are differentiated from one another (e.g. by branding or quality) and hence are not perfect substitutes. In monopolistic competition, a firm takes the prices charged by its rivals as given and ignores the impact of its own prices on the prices of other firms Oligopoly, in which a market is run by a small number of firms that together control the majority of the market share. Duopoly, a special case of an oligopoly with two firms. Monopsony, when there is only a single buyer in a market. Oligopsony, a market where many sellers can be present but meet only a few buyers. Monopoly, where there is only one provider of a product or service. Natural monopoly, a monopoly in which economies of scale cause efficiency to increase continuously with the size of the firm. A firm is a natural monopoly if it is able to serve the entire market demand at a lower cost than any combination of two or more smaller, more specialized firms. Perfect competition, a theoretical market structure that features no barriers to entry, an unlimited number of producers and consumers, and a perfectly elastic demand curve. A profit-maximising firm will produce at the productively and allocatively efficient level of output in a perfectly competitive industry The conventional argument against market power is that monopolists can earn abnormal (supernormal) profits at the expense of efficiency and the welfare of consumers and society. The monopoly price is assumed to be higher than both marginal and average costs leading to a loss of allocative efficiency and a failure of the market. The monopolist is extracting a price from consumers that is above the cost of resources used in making the product and, consumersà ¢Ã¢â€š ¬Ã¢â€ž ¢ needs and wants are not being satisfied, as the product is being under-consumed. The higher average cost if there are inefficiencies in production means that the firm is not making optimum use of scarce resources. Under these conditions, there may be a case for government intervention for example through competition policy or market deregulation. Many sellers: each seller represents a very small portion of the overall market. Since supply and demand in the overall market set the equilibrium price and quantity, one small firm cannot influence the market price. Each firm must accept whatever market price exists. Because of this, firms in perfect competition are called price takers. Identical products: you may see this referred to as standardized products, or homogeneous products. Consumers have no preference for a product from one firm over the product of any other firm. The products of each firm are perfect substitutes for one another. There is no difference in quality. Consumers would always choose to purchase the product from the lowest priced source. Firms cannot differentiate products in any way, including packaging or advertising. Easy entry and exit: new firms can enter the market freely. This implies that economies of scale do not exist. Existing firms can just as easily stop production and exit the mark et. Buyers know where the product is being sold, and at what price. Sellers know the strategies used by their competitors, including price and quantity decisions. Monopoly is a market structure in which one firm supplies the entire market. The product supplied has no close substitutes. The market size can be large or small. A firm in a monopoly market structure is called a monopolist. Because there is only one firm in the market, the firms demand curve is the same as the market demand curve. Unlike a firm in perfect competition, a monopolist is a price maker. It decides what price at which to sell its product. It also decides what quantity to offer for sale. A monopolist has market power. It is also not true that a monopolist always earns a profit. A monopolist has costs just like any other firm, and must earn revenue in excess of these costs in order to earn a profit. The demand curve faced by a monopolist is downward sloping. This means that it can only increase output i f it lowers its price. It cannot lower its price only on any additional output that it wishes to sell, however. It must lower its price on all units sold, including the units that it could sell at a higher price. The exception to this is in the case of price discrimination, which will be discussed later in this section. If a monopolist raises its price, the downward sloping demand curve means that it will sell fewer units. By having to lower the price on all units instead of just the additional units, the marginal revenue curve lies below the demand curve. Like any firm in any market structure, profits are maximized at the quantity of output where marginal revenue (MR) is equal to marginal cost (MC). With the marginal revenue curve below the demand curve, this quantity will be lower than the profit-maximizing quantity in perfect competition. Since the monopolist sets the quantity where MR=MC, supply is determined by marginal cost. Also, unlike perfect competition, marginal revenu e is not equal to price in a monopoly. Profits are maximized at the quantity where MR=MC, but the monopolist can charge the price where this quantity intersects the demand curve. Since the demand curve lies above the marginal revenue curve, this price will be higher than what would occur under perfect competition. Since the price is set by the demand curve, and price also equals average revenue, the average revenue curve is the demand curve. All else equal, then, the monopolist will sell a lower quantity at a higher price than what would occur under perfect competition. With the output quantity determined by the marginal revenue curve, and the price determined by the demand curve (which lies above the marginal revenue curve), a monopolist doesnt really have a supply curve. It has a supply point. This is because only one point in a graph factors in price, quantity, demand, and marginal revenue. The necessary conditions for a market inefficiency to be eliminated are as follows (1) The market inefficiency should provide the basis for a scheme to beat the market and earn excess returns. For this to hold true (a) The asset (or assets) which is the source of the inefficiency has to be traded. (b) The transactions costs of executing the scheme have to be smaller than the expected profits from the scheme. (2) There should be profit maximizing investors who (a) recognize the potential for excess return (b) can replicate the beat the market scheme that earns the excess return (c) have the resources to trade on the stock until the inefficiency disappears Efficient Markets and Profit-seeking investors: The Internal Contradiction There is an internal contradiction in claiming that there is no possibility of beating the market in an efficient market and then requiring profit-maximizing investors to constantly seek out ways of beating the market and thus making it efficient. If markets were, in fact, efficient, investors would stop looking for inefficiencies, which would lead to markets becoming inefficient again. (a) In an efficient market, equity research and valuation would be a costly task that provided no benefits. The odds of finding an undervalued stock should be random (50/50). At best, the benefits from information collection and equity research would cover the costs of doing the research. (b) In an efficient market, a strategy of randomly diversifying across stocks or indexing to the market, carrying little or no information cost and minimal execution costs, would be superior to any other strategy, that created larger information and execution costs. There would be no value added by portfolio managers and investment strategists. (c) In an efficient market, a strategy of minimizing trading, i.e., creating a portfolio and not trading unless cash was needed, would be superior to a strategy that required frequent trading. Market Efficiency for Investor Groups à ¢Ã¢â€š ¬Ã‚ ¢Definitions of market efficiency have to be specific not only about the market that is being considered but also the investor group that is covered. oIt is extremely unlikely that all markets are efficient to all investors, but it is entirely possible that a particular market (for instance, the New York Stock Exchange) is efficient with respect to the average investor. oIt is also possible that some markets are efficient while others are not, and that a market is efficient with respect to some investors and not to others. This is a direct consequence of differential tax rates and transactions costs, which confer advantages on some investors relative to others. What market efficiency does not imply: An efficient market does not imply that (a) stock prices cannot deviate from true value; in fact, there can be large deviations from true value. The only requirement is that the deviations be random. (b) no investor will beat the market in any time period. To the contrary, approximately half of all investors, prior to transactions costs, should beat the market in any period. (c) no group of investors will beat the market in the long term. Given the number of investors in financial markets, the laws of probability would suggest that a fairly large number are going to beat the market consistently over long periods, not because of their investment strategies but because they are lucky. It would not, however, be consistent if a disproportionately large number of these investors used the same investment strategy.