Report of food industry in India Essay Example | Topics and Well Written Essays - 3500 words

Report of food industry in India - Essay Example its of food, development of the human resources, supporting the research and development and the creation of the development of infrastructure and also the promotional measure that is adopted for encouraging the growth, development and processing of the food sector. The food processing has been considered as the large and the important sector for covering various activities which includes the horticulture, animal husbandry, agriculture, plantation and the fisheries. The government of India and the ministry of food processing has included the following items or the segments that is included in the food processing industry are processing of grain, fisheries, dairy , vegetables and food processing, the consumer foods which mainly comprises of the beverages ,packaged drinking water and foods and the processing of meat and poultry. In recent years it has been observed that India has experienced a substantial modification and development in the consumption, production and trade that is car ried out in the Indian agricultural sector. In the year 2000 it has been observed that India has experienced the growth rate in terms of the value that is related to the export of marine products, tea, sugar and rice. India is carrying high value of exports of various traditional commodities which includes coffee, tobacco, sugar and rice. The organized food sector of India constitutes to around 30%. The highest proportion or the share in case of the organized food in India is mainly contributed by the poultry and the meat segment. The macroeconomic environment in case of India provides a wide and diverse area and opportunities towards the growth and development in the industry and this contributes towards the development of the national economy. The food processing industry in India accounts for 32% of the food market in India. The food processing industry in India is one of the largest and is ranked fifth in terms of production, consumption and export. The total estimated value of

Material Things Become Important After The Day Essay Example for Free

Material Things Become Important After The Day Essay During a nuclear war between Russia and the United States, the town of Fort Repose, Florida, is in the danger zone of radiation poisoning and contaminated items. Randy and the townspeople of Fort Repose must remain calm and ration their supplies. However, when the material things run low, everything becomes important. People must be creative and composed during this time of chaos. Therefore, the importance of material things after The Day leads to death, theft, and murder, but when people add to the chaos by trading the expensive for the inexpensive, people will do anything for the necessities, and that just adds to chaos causing the society of Fort Repose, Florida to be completely disrupted. In the town of Fort Repose, the people of the town are very confused and terrified about what is going to occur in the following months. In addition to this turmoil, people need to increase their supply of food, water, and anything else that they think could help them in this time of bedlam. The use and need of salt becomes very important in Alas, Babylon. In fact, salt is the main preservative of most foods, especially steak and meat. In detail, the salt preserves the meat by drawing out the moisture and creates an environment inhospitable to bacteria. If they were to put the meat in salt in cold weather, the salted meat could last for years. Not only does salt last long, but its trade in value is amongst the highest. Salt could be traded for really anything their mind could think of. Anyone would do anything to get his or her hands on salt if that meant food for a longer period of time. Equally important, is gasoline, the main element for the transportation of cars after The Day. Gasoline could only be obtained if one has had the money, has something worth the exchange, or they were a friend of the retailer. Gasoline becomes very valuable and expensive after The Day that Randy had to have special connections to get the gasoline from the vendors. Specifically, one had to know one for a long time and have a family connection to get enough gasoline to actually be useful. In fact, the gasoline was so important that the whole town decided to convene one day to combine all of the gasoline that the townspeople had just so they could make long distance visits and make sure their family members were alright after The Day. More importantly, the main value after The Day s batteries. Batteries in particular are the main source of wealth after The Day. Batteries are the life of the main source of all information that goes into Fort Repose, and when these batteries become low or die, the only source of information would be from HAM radios, which is used by Admiral Hazzard, which use batteries in a more energy efficient way. HAM radios are the source of where most of the information was broadcasted to the townspeople. In other words, everything that is usually in the common household is now needed to survive this terrible time. In this time of terror, people of Fort Repose are so desperate to get food or anything else that could be a great help to them; they would do anything to get these items, even a couple would kill innocent townspeople. When the highwaymen killed the citizens of Fort Repose, these rebels go to stores and kill the owner of the store, just to get his food. As a punishment, they one is killed in front of the town. Equally as bad, they would go into peoples homes and do the same thing. However, some people who were nicer or more religious and wouldnt dare to kill an innocent citizen would be nice and not kill the house owners. However, most families that are prepared would always have a gun in their hands that they could fire if anything bad is to happen, just like the firearm that Randy and Helen always have on their wall, just in case of emergency. Equally important, they stole the food instead of killing to get the food. Most of the time, they would just steal food from peoples self-owned stores. Money isnt important to the owners because you couldnt buy anything with money. The owners didnt even attempt to stop the criminals because they say that money wasnt worth anything after The Day. In fact, money couldnt be used to get anything. Money is worthless. In addition, people would steal the food because they were scared. They are afraid of what is going to happen in this terrible time after the bombing. Not only did they steal, but they also find people in the town and loot off of them. The rebels use the townspeople just to get items such as medicine, ammo, etc. like when the store is robbed and the owner didnt chase after the thieves. In addition, many of the people die because they do not have the essential materials to survive in this time of crisis. To be specific, penicillin is one main necessity for a few of the townspeople of Fort Repose, Florida. Actually, one of the townspeople, Livinia McGovern, dies from diabetes due to the lack of penicillin. In fact, in the town, they ran low on food, ammo, penicillin, etc. really quickly because they are isolated from every other town, state, etc. Last but not least, the trading of the expensive items for the inexpensive items leaves a lasting mark on The Day. In detail, the real full potential values of most items go substantially down after The Day like anything that can be run on electricity, due to the lack of electricity. Specifically the value of coffee and whiskey are changed after The Day. Coffee becomes more expensive than whiskey. However, whiskey could be used to treat wounds because of its alcohol contents. Coffee is one of the things that Randy and his family really love. Randy even thinks that whiskey is less important than coffee and that coffee is more essential than anything else. In addition, salt is another necessity that everyone in the town wants to have. The main value at that time is to have salt. Salt becomes very expensive costing almost $200 for two packs. Salt can be used in numerous ways and anyone would trade practically anything to get his or her hands on this magnificent item. However, not everything goes up in value. Many of the guns and ammunition that people had are just for emergencies, clothing is something that they would never run out of, and people have no use for anything electronic, so electronics lose value greatly. Besides, with the war going on, people are too concerned about what they are going to eat and how they are going to survive than electronics. After The Day the people of Fort Repose fight to find all necessities that they need to survive the war. The people of Fort Repose, including Randy Bragg, are all scared but are ready to withstand this terrible tragedy. However, the necessities deplete very quickly, putting many people in jeopardy of losing their lives. The lives of these people are forever changed by the loss of electricity, communication, and the necessities of life. When the necessities are completely gone, the citizens of Fort Repose all get together to solve their problems and what they are going to do to cope with the loss of things. Nevertheless, they all stay strong, are able to make a lasting impression on the town of Fort Repose during the nuclear war, and yet, they are willing to help stay and rebuild the town in Alas, Babylon.

Equilibrium level of national income and government expenditure

Equilibrium level of national income and government expenditure In an open economy, the circular flow model of national income consists of five sectors as shown in figure 1 below. Figure 1: Circular Flow of National Income in a Five Sector Model The figure above illustrates the five sector circular flow model, which can be described as a model based on income flows from one sector of the economy to another in a circular flow motion, which explains the level of national income. The main sectors of the economy include households and firms. In the two sector model consisting only of households and firms, the economy is always at equilibrium. That is Income (Y) is always equal to consumption (C). However, the economy cannot be limited only to these two sectors. The effects of banks, government and international trade must be taken into consideration. These three sectors bring about withdrawals and injections. The financial sector mobilises savings (S) from households and makes investments (I) to firms. The government sector collects taxes (T) from households and makes expenditure (G) on firms. Finally, in the balance of payments sector, part of household income is spent on imports (M) while some revenue is received as exports (X). Since the two sector model always results to equilibrium, any distortion in equilibrium will result from the impact of the other three sectors. From the figure above, the national income is given by: Y = C +S+T+M à ¢Ãƒ ¢Ã¢â‚¬Å¡Ã‚ ¬ (I+G+X) For equilibrium to be achieved, total leakages must be equal to total injections. That is, S+T+M = I+G+X. Therefore, the equilibrium level of national income is simply given by: Y=C. The Keynesian cross model shows how consumption is determined. Under normal conditions, households will consume all goods and services produced. In this case, consumption will be exactly equal to income. This is represented by the 45 degree line in figure 2 below. Keynes noted that the relationship between consumption and income could not be perfect as the one depicted by the 45 degree line. He noted that not everybody in the economy earns income but everybody consumes. Therefore, there is a certain amount of consumption that does not depend on income and a certain amount that depends on income. From the foregoing, Keynes suggested the following consumption function (Mankiw, 2009: 497): Where = constant is defined as the consumption that does not depend on income; c is the slope of the consumption function referred to as the marginal propensity to consume. The marginal propensity to consume lies between 0 and 1. This indicates that consumption increases as income increases but the rate of increase in consumption is not as much as the rate of increase in income (Mankiw, 2009: 496). Figure 2: The Keynesian Cross 450 Consumption (C) National income (Y) Y* According to the Keynesian cross model, the equilibrium level of national income Y* is achieved at the point where the consumption function intersects the 45-degree line. At this point, all income that is earned is consumed. This is also the point where the desired level of spending is equal to the national income (Suranovic, 2005). Aggregate demand (AD) is the total or aggregate expenditure of final goods and services in an economy over a given period of time say one fiscal year. The aggregate demand is represented depending on whether it is a closed or open economy. For an open economy, the aggregate demand is given by: Y = AD = C+I+G+X-M For a closed economy, the aggregate demand is given by: Y = AD = C+I+G In the closed economy case, X-M is considered to be zero since there are neither imports nor exports. The aggregate demand curve is downward sloping. It shows the relationship between the quantity of real GDP demanded and the price level (Parkin, 2009: 324). The AD curve is as shown in the figure below. Figure 3: Aggregate Demand (AD) Curve AD Price Level (P) National income (Y) Aggregate supply (AS) refers to the aggregate or total supply of final goods and services or real GDP in an economy over a given period of time. The national income or real GDP is given by: Y = GDP = C+I+G+X-M. Unlike the AD curve, the AS curve is upward sloping. It shows the relationship between aggregate supply of final goods and services and price levels. This is represented in figure 4 below. AS Price Level (P) National income (Y)Figure 4: Aggregate Supply (AS) Curve Figure 5: Aggregate Demand-Aggregate Supply Framework (Macroeconomic Equilibrium) AS Price Level (P) National income (Y) Y* P* AD Macroeconomic equilibrium is defined as a situation where aggregate demand and aggregate supply are equal without any tendency for change (Chiang and Wainwright, 2005: 30). At this point a given price level ensures that the final goods and services demand is exactly equal to the final goods and services supplied. As shown in figure 5 above, this price level is referred to as the equilibrium price level (P*) and the real GDP or national income at this price level is the equilibrium level of national income (Y*). At this level of national income, the aggregate supply curve intersects the aggregate demand curve. Multiplier effect caused by an Increase in Government Expenditure From the circular flow model above, a multiplier effect from government expenditure will lead to an increase in government expenditure. Firms will increase investment in capital goods, employment will increase, and wages will increase. The increase in wages will lead to an increase in consumption, savings and taxes. Both imports and exports will also increase. In the long-run, the total amount of leakages will exactly equal the total amount of injections. There will be an overall increase in national income and the equilibrium level of national income will be higher than before. Using the Keynesian Cross, an increase in government expenditure will result to an increase in national income through increases in wages, consumption, savings, investment, imports and exports. 450 Consumption (C) National income (Y) Y* Y1* As income rises, the average propensity to consume (APC) which measures slope of the line from the origin to the consumption function will decrease (Mankiw, 2007: 497). This will lead to an increase in the equilibrium level of national income from Y1*. AS Price Level (P) National income (Y) Y* P* AD AD1 AS2 In the AD/AS model, an increase in government expenditure will result to an increase in aggregate demand. An increase in aggregate demand will motivate firms to increase investment. Employment will increase leading to an increase in wages. Savings will increase as well as taxes. In addition imports and exports will rise. The overall effect will be an increase in aggregate supply and aggregate demand. This will result to a rightward shift in the aggregate demand and supply curves as shown in figure 6 below. Consumer Confidence If consumer confidence is high, people tend to consume more of current income. In the circular flow model, the multiplier effect will be higher if consumer confidence is high. That is the respond to an increase in government spending will be higher than the case would be if consumer confidence is low. Households will consume more of their current levels of income as they anticipate an increase in future income. In like manner, firms will increase investment, employment will increase, and savings will reduce. Moreover, taxes will increase as well as imports and exports. In the Keynesian cross model, consumer confidence will lead to an increase in the marginal propensity to consume. People will be willing to consume more of their current incomes as they anticipate increases in future incomes. In terms of the AS/AD framework, a higher consumer confidence will lead to a significant increase in aggregate demand. This will in turn result to higher rates of investment spending, taxes, imports and exports. The overall impact will be a rightward shift in the AS and AD curves to establish a new equilibrium level of national income.

new york stock exchange Essays -- essays research papers

The New York Stock Exchange traces its origin back 200 years. Centuries of growth and innovation the NYSE remains the world’s foremost securities marketplace. Over the years its commitment to investors has been unwavering and its persistent application of the latest technology has allowed it to maintain a level of market quality and service that is unparalleled. The NYSE has grown to become the global marketplace of today. Each day on the NYSE trading floor and auction takes place. Open bid and offers are managed on the trading floor page of NYSE.com by exchange members acting on behalf of institutions and individual investors. Buy and sell orders for each listed security meet directly on the trading floor in assigned locations. The NYSE trading floor contains 20 posts with more that 400 trading positions. Prices are determined through supply and demand. Stock buy and sell orders funnel through a single location ensuring that the investor no matter how big or small is exposed to a wide range of buyers and sellers. The NYSE is an agency auction market. This means The essential point is that trading at the NYSE takes place by open bids and offers by Exchange members, acting as agents for institutions or individual investors. A member firm is a company or individual who owns a "seat" on the trading floor. Only member firms are allowed to buy and sell securities on the trading f...

External and Internal Forces in Jane Eyre by Charlotte Bronte Essay

External and Internal Forces in Jane Eyre by Charlotte Bronte In Charlotte Brontà «Ã¢â‚¬â„¢s Jane Eyre, the eventual goal of Jane Eyre’s journeys and struggles as a character is for Jane to be strong enough within herself to stand on her own. It is not until she finds this internal strength that she can live as a content individual and weather the distracting demands put on her by the external forces that surround her. Throughout most of the novel, Jane makes the mistake of looking for this internal peace through external forces like Mrs. Reed, Mr. Rochester and St. John. To convey this tendency, Charlotte Brontà « constructs her narrative so that, rather than looking within herself to find internal solace, Jane turns away from cold, alien internal imagery, and looks instead to fickle external imagery that is at times a friend, and at times a foe. The internal imagery is reflective of Jane’s own internal state, and the external imagery is reflective of the state of the external forces that surround her; until Jane realizes t hat she cannot find solace in the ever-changing external forces around her, and must instead look inside herself for this solace, the internal imagery must remain cold and alien, and the external imagery must remain unpredictable in its ability to comfort. For the purposes of this paper, the external world is defined as any force, whether this force is human or of the natural world, that is outside of Jane Eyre, and thus threatens to distract Jane from her essential journey as a character. The internal self is within Jane, and must be strong in order for Jane to stand on her own and able to withstand the external forces of the narrative. From the very first scenes of the novel, Jane looks to the external wor... ...the wood symbolizes and find their way home, toward the internal happiness that â€Å"home† represents. The novel Jane Eyre details one woman’s journey to find a place for herself in a world that does not want her. In order to do this, she must find internal strength and solace. For a large portion of the novel, she seeks and fails to find this through external forces. For every two steps forward, she takes one step back because of external forces that draw her away from this internal self. However, Jane does manage to progress and eventually find internal happiness. Her journey and her turn to the external, battle with the internal, and eventual acceptance of her internal self in spite of external forces is embodied in the external and internal imagery that Bronte uses throughout the course of the novel. Such imagery is inherently necessary to Jane’s evolution.

Balance Scorecard Training Essay

Business: Online Personal Training and nutrition plans called Lose the Fat Girl The Balanced Scorecard is a strategic performance management framework that has been designed to help an organization monitor its performance and manage the execution of its strategy. In a recent world-wide study on management tool usage, the Balanced Scorecard was found to be the sixth most widely used management tool across the globe which also had one of the highest overall satisfaction ratings (Pearce & Robinson, 2009). In its simplest form the Balanced Scorecard breaks performance monitoring into four interconnected perspectives: Financial, Customer, Internal Processes and Learning & Growth. According to Pearce and Robinson (2009), the financial perspective covers the financial objectives of an organization and allows managers to track financial success and shareholder value. The customer perspective covers the customer objectives such as customer satisfaction, market share goals as well as product and service attributes. The Internal process perspective covers internal operational goals and outlines the key processes necessary to deliver the customer objectives. The learning and growth perspective covers the intangible drivers of future success such as human capital, organizational capital and information capital including skills, training, organizational culture, leadership, systems and databases. Deriving what the company wants to get done starts with looking at why the company was founded in the first place. Basic principles that the company was founded upon helped drive its past to bring it to a successful present, and sustain the future for years to come. Lose the Fat Girl has a great plan to finish out the 2013 fiscal year on a strong note and even going into 2014 on the right foot would be beneficial to the company as a whole. The goals that were accomplished comparing year-over-year figures reveal that we have set goals to increase overall revenue, shareholder value, and capital  interest substantially and our results prove that these were realistic figures that we have set out for ourselves. There was a 30% increase in revenue compared to this time last year. Increases in shareholder value over the past two years of 15% , a steady average gain each year. Customer retention is at 90% and employee turnover is 0% since the company first started. Lose the Fat Girl is committed to developing personalized fitness programs that will motivate, support, and get each individual to their desired fitness goals by using safe and effective training techniques, for guaranteed results. The mission statement indicates that the company wants to touch and change people’s lives because it cares which will keep customers training for longer periods of time. The mission statement creates the foundation and is a reminder of the company’s overall purpose: To change people’s lives for the better. Working out has and always will be a problem for many people around the world. A service like this would allow us to reach people anywhere. This mission statement came about because of the need to help people that work long hours and simply need a little help, or push to get back in to shape by creating a lifestyle. Making training and coaching available to our clients anywhere has made it easier for more people to access our services. Looking at values for the company, we came up with a simple approach that coincides with what our clients ultimately find to be solid values to find in a company they can trust. Forming a strongly rooted client base, strict certification practices being encouraged and mandatory for employees, and even offering products that are going to fit the customer the best way possible are some of the things we encourage. Follow-ups are critical in making sure the client is happy with the services they are receiving at all times. This will continue a strong pipeline of customers for the future, instill confidence in the customer in knowing they are in the best hands possible, and customers ultimately benefit the best way possible in the end. The idea of the balanced scorecard is simple but extremely powerful if implemented well. As long as you use the key ideas to create a unique strategy and visualize it in a cause-and-effect map, align the organization and its processes to the objectives identified in the strategic map, design meaningful key performance indicators (KPI) and use them to facilitate learning and improved decision making you will end up with a powerful tool that should lead to better performance (Pearce &  Robinson, 2009). References Pearce, J.A. II, & Robinson, R.B. (2009). Strategic management: Formulation, implementation, and control (11th ed.). Retrieved from The University of Phoenix eBook Collection database.

Managerial Economics and Business Strategy

Dr. David J. St. Clair Managerial Economics and Business Strategy 3551 #6 Answers – Summer 2012 1. What type of evidence did Dupont introduce in its plastic wrap trial that proved decisive in its acquittal? __ It brought in cross elasticities to show that there were many substitutes for plastic wrap. It then argued that the market had to be defined to include all substitutes. This broadened the definition of the market to the point where DuPont’s market share was small. ___ 2. What had Alcoa done that made the judge find it guilty of being a monopoly? It had a market share above 90%_. Did the judge rule that Alcoa was a â€Å"dirty† firm? _ No ___ 3. Why did the verdict in the U. S. Steel antitrust case confuse everyone? __ U. S. Steel was ruled to be â€Å"reasonable† under the courts â€Å"Rule of Reason† doctrine. This was confusing because the company had a notorious reputation for price fixing and uncompetitive practices __ 4. Bill Gates took a very aggressive approach to dealing with the Justice Department in the Microsoft case even though Microsoft had an â€Å"Alcoa Problem. † What was Microsoft’s â€Å"Alcoa Problem? ___ Microsoft had a large market share approaching the 90% threshold established in the Alcoa case ___ 5. When something is illegal â€Å"per se,† what does this mean? __ The government only has to prove that you did it; motive or intent does not matter ___ 6. What was the remedy in the Standard oil and American Tobacco cases? __ divestiture (i. e. , the companies were broken up) ____ 7. What, according to Andrew Carnegie, was destructive competition? ___ excessive and ruthless competition among big firms that eliminated profits but not competitors __ 8. When we were discussing oligopoly, we referred to the two faces of oligopoly.Which face of oligopoly was Carnegie referring to in his discussion of ‘destructive competition? ’ the non-cooperative, extremely competitive r ivalry _ 9. What does the Hart-Scott-Rodino Act require? ___ pre-merger notification and approval by the Justice Department and the FTC ____ 10. What is a tying contract (or agreement)? __ a firm refuses to seel product that you want unless you also buy one of the firm’s other products ___ 11. The Sherman Act was short and sweet. It outlawed two things. Identify both: a. ___being a monopoly ______________________ b. ___trying to become a monopoly __________________________ 2. Which antitrust act made vertical market foreclosure a violation of antitrust laws? __ the Celler-Kefauver Act __ 13. What was the reason why the European Union blocked the merger of GE and Honeywell? __ It violated the EU’s â€Å"portfolio power† doctrine __ 14. What is a â€Å"soft loan? † ___a government loan that is never going to be paid back; a disguised subsidy __. Why have many American economists likened â€Å"portfolio power† to a soft loan? ___They argue that portfo lio power is a disguised protectionist policy masquerading as an antitrust policy___ 15. What was IBM’s defense in its mainframe computer antitrust case? _ It challenged the government’s narrow â€Å"large main-frame computer† definition of the relevant market ___ 16. What was DuPont convicted of in the GM case (be specific). ______ vertical market foreclosure ____ 17. What precedent did the Pabst Brewing case set? __if the market is a local, then the relevant market must be local ____ 18. What precedent did the Staples/Office Depot case set? ___the Justice Department or the FTC can disallow a merger based on the anticipated price and competitive consequences ________________ 19. What happened to U. S. antitrust policy following the E. C. Knight case? __ as a consequence of the E.C. Knight case, antitrust laws did not apply to manufacturing and there was a wave of mergers in the manufacturing sector __ 20. In the 1890s, German courts were taking a very different approach to cartels and antitrust. What did the German court rule in the pulp cartel case? __ cartel agreements were legally enforceable contracts; cartels were legal and socially beneficial ___ 21. What was Brown Shoe accused of in the Kinney Shoe antitrust case? ____ vertical market foreclosure _____ 22. What was the remedy in the Brown Shoe/Kinney Shoe Case? ____ The merger was disallowed and the two firms were separated _______ 3. What does the firm have to do in a consent decree? _ stop the offending practices without admitting guilty _. What does the Justice Department agree to do in return? ___ drops the case _ 24. Why do most firms prefer a consent decree to a trial, even when they feel that they are innocent? __ the case is quickly resolved and there is no conviction that can be used to expose the firm to civil suits seeking triple damages __ 25. Are interlocking directorates illegal per se? Yes. Is price fixing illegal per se? Yes 26. Are tying contracts illegal per se? Y es Is price discrimination illegal per se? _ No 7. How can the Justice Department and the FCC respond to a notification of merger filed under the Hart-Scott-Rodino Act? (Hint: they have three options. ) __1) approve; 2) deny; or 3) approve with conditions __ 28. English Common law became the basis for American Common Law. What dos the Common Law say about damages for parties injured by restraint of trade? ___ injured parties are can collect triple damages ____ 29. Which type of elasticity is often important in antitrust cases? _ cross elasticity __ 30. Why did the Justice Department allege that Microsoft was using a tying agreement or contract? ___The Justice Department alleged that Microsoft was tying the MS-DOS operating system to the purchase of its browser ___ 31. Bill Gates was rather arrogant and combative in dealing with the Justice Department in the Microsoft case. He seemed unaware of Microsoft’s â€Å"Alcoa problem. † What was Microsoft’s â€Å"Alcoa problem? † _________This is a duplicate question – see above____________ 32. How did IBM’s mainframe computer antitrust suit end? ___ the Justice Department dropped the case because the court was unlikely to accept its narrow definition of the relevant market ____ 33.Why was Microsoft accused of â€Å"vertical market foreclosure? † ___ Microsoft was accused of using its operation system monopoly (MS-DOS) to foreclose browser maker from the market ___ 34. Why was Nabisco giving up on its strategy of seeking to create a cracker of biscuit monopoly? __It was unable to eliminate competition, especially the competition of capitals __ 35. Why was Nabisco so open in its 1901 annual report about discussing its efforts to monopolize the cracker (biscuit) industry? __Because of the E. C. Knight Case, there were no antitrust laws in 1901 that pertained to manufacturing firms _ 6. In its 1901 annual report, Nabisco announced that it was giving up on its efforts at cre ating a cracker or biscuit monopoly. What was the company’s new strategy going to be? ____Nabisco was going to concentrate on making better products and creating a more efficient and competitive firm ___ 37. What did Liggett accuse Brown & Williamson Tobacco of doing in its law suit? (don’t simply say â€Å"of being a monopoly† or â€Å"violating antitrust laws†) ___Liggett accused Brown & Williamson of engaging in predatory pricing by selling it cigatettes at below Brown & Williams’ AVC______ 8. Under the Areeda-Turner test, predatory pricing is defined as a firm selling its product at a price ____below its average variable cost_____ 39. Was the Areeda-Turner test upheld (validated or confirmed) by the court in the Liggett vs. Brown & Williamson’s case? ___No, the Areeda-Turner test was replaced by the â€Å"recoupment test† ___ 40. What must a plaintiff (the one who files the law suit) do (show) in order to keep a predatory pricing law suit from being dismissed (thrown out even before it goes to trial) under the â€Å"recoupment test? ____The plaintiff must show that the defendant did have a reasonable chance of raising prices in the future to make up for, (that is, to recoup) its short term losses due to the low prices ___ 41. Does the recoupment test introduced in the Liggett vs. Brown & Williamson case make predatory pricing law suits more likely, less likely, or equally likely compared to the old Areeda-Turner test? ____less likely _____ 42. The courts have held that predatory pricing cases require a showing that a firm has reduced price below its costs. What is the relevant cost for this criterion? ________average Variable cost (AVC) _________ 3. Many economists have used the concept of â€Å"barriers to entry† in their criticism of predatory pricing antitrust laws. Explain their criticism. __Predatory pricing only makes sense if the firm can raise prices after using it to attain a monopoly and if it has barriers to entry that can keep new competitors out. However, if it had such barriers in the first place, it would probably not need predatory pricing. Predatory pricing does not give the firm the required barriers to entry, unless one envisions constant predatory pricing. But constant predatory pricing is nothing more than price competition. ___ 44.During the 1930s, large American cigarette companies faced competition from small cigarette companies offering new brands at 10 cents per pack. How did they meet and deal with this competition? __They resorted to predatory pricing, i. e. , they dramatically reduced their prices (in some case to below costs) in order to drive the new competitors out of the market ___ 45. Did the response of the â€Å"Big Four† tobacco companies to the challenge from the new 10-cent brands competitors in the early 1930s work? Why or why not? _the Four Majors were unable to drive out two competitors created by the 10-cent brand episode.They h ad a 91 percent market share before the episode and only a 69 percent market share after. Two formidable competitors emerged and the Big Four became the Big Six__ 46. What was the verdict in the 10-cent brands cigarette case? _____the major cigarette companies were found guilty of violating the antitrust laws______ 47. Was predatory pricing the government’s primary allegation against the majors in the 10-cent brands cigarette price wars? If not, what was the primary complaint? _the court focused primarily on the collusion among the majors to fix prices__ 48.What was the court’s remedy in the 10-cent brands cigarette case? ___the court fined the guilty parties and restricted their ability to communicate and work together ____ 49. Why do most economists argue that antitrust laws prohibiting predatory pricing are actually anti-competitive? ____ Most economists argue that antitrust laws prohibiting predatory pricing are actually anti-competitive because any firm that lower s it's prices to compete against it's market competitors are susceptible to being charged with predatory pricing, even when no such intent probably exists.Furthermore, filing an antitrust lawsuit related to predatory pricing is often abused and a convenient way for businesses to compete with their competitors without matching their competitors price cutting especially since antitrust laws concerning predatory pricing are sometimes difficult to distinguish from predatory pricing, market competition, and competitive business practices. __ 50. Suppose there are five (5) firms in an industry with the following market shares: 15%, 20%, 2%. 45%, and 18%. What is the Herfindahl Index for this industry? _______2,978_______. According to the 1992 Horizontal Merger Guidelines, how would this industry be classified? ___It would be classified as a ‘highly concentrated’ market. _____ 51. Ceteris paribus, would a merger that raised the Herfindahl index from 1900 to 1941 be likely to trigger interest by antitrust regulators? Why or why not? ____No, because while this market would be classified as ‘highly concentrated,’ the merger does not raise the HHI by more than 50 points and will therefore not trigger the interest of regulators. ___ 52. Ceteris paribus, would a merger that raised the Herfindahl index from 750 to 985 be likely to trigger interest by antitrust regulators? Why or why not? ___No, because a market with a Herfindahl Index below 1,000 is considered to be ‘unconcentrated’ and mergers in unconcentrated markets are unlikely to be challenged by regulators. _____ 53. Tying contracts are illegal per se under American antitrust laws. However, enforcing their illegal per se status has proven to be very difficult.What is the problem here? ___While tying contracts are illegal per se under antitrust law, there seems to be no way of getting around some tying during the course of routine business, e. g. , left shoes tied to right shoes , etc. This therefore introduces the element of intent and competitive consequences; two features that are not supposed to figure into illegal per se allegations. Currently, this problem is most pronounced in the practice of ‘bundling’ in high tech markets. ____ 54.In the YouTube video on Monopoly, what did Milton Friedman think was the primary cause of longer-lasting monopolies? ____government market restrictions ___________ 55. In the YouTube video on Monopoly, what did Milton Friedman think was the very best policy for dealing with monopolies and market power? ____free trade or measures to make trade more free and open _______ 56. In the YouTube video on Monopoly, Milton Friedman never mentioned or discussed Smith’s Formula. However, based on his comments, what do think his position would have been on our 200-year old question? __Friedman would definitely argue that markets had, if government leaves them alone, sufficient competition to make Smith’s For mula society’s primary line of defense against monopoly abuse. __ 57. What happened when Coca-Cola tried to introduce its new soft drink Peppo in the late 1960s? ____Dr Pepper sued for trademark infringement and Coka Cola had to change the name of the product to ‘Mr Pibb’. _____ 58. How did the FTC end up defining the relevant market in Coca Cola’s proposed acquisition of Dr Pepper? _The FTC took a very narrow view and defined the relevant market as the ‘pepper-flavored soft drink market’ __. How did the FTC rule on the proposed acquisition? __The FTC denied the request for merger approval. __ 59. Both the FTC and Coca Cola introduced Herfindahl Indexes in support of their positions in the proposed acquisition of Dr Pepper. What was the critical point on which the proposed merger was decided? ____The definition or scope of the relevant market ____