Reword These Paragraphs In Your Own Words Do Not Copy From A

Reword These Paragraphs In Your Own Words Do Not Copy From Any

It is suggested that managers, when aiming to reduce expenses, may not prioritize the overall costs of the business but instead focus on the amount that directly benefits their personal income. Managers often seek to maximize their profits, which in turn can help boost their earnings. From my own observations, many companies are reluctant to pay their employees—including their managers—what they truly deserve. I spent about three years working in a factory characterized by an exceptionally high employee turnover rate. Ultimately, the company found that it was more costly to train workers for a week or two and then see them leave than to simply offer slightly higher wages. Most employees initially considered the pay acceptable, but once they began training and experienced the job's demanding nature and high expectations for just a small wage increase over the minimum, their perceptions changed. If workers failed to meet the required daily output, their pay would be reduced by fifty cents per hour. It has been over two years since I left that job, and everyone I knew who worked there has moved on to other positions. The company's survival is now severely threatened because of its inability to retain staff.

According to Colander (2013), "Monopoly is a market structure in which one firm dominates the entire market," implying there is no competition; thus, the monopolist can set any price they wish and often produce products of lesser quality. Conversely, monopolistic and perfect competition represent the opposite scenarios, characterized by intense competition that restricts how high prices can be set. A key distinction between monopolistic and perfect competition, as described in the course material, is that in monopolistic competition, firms often limit their production to avoid decreasing the market price of their products. Beyond considering rarity, an example of this could be refrigerators. Most households need a refrigerator, but purchasing more than two is unnecessary because there are no buyers for excess units. If I produce too many, I won't have enough buyers. Perfect competition assumes each sale results in a profit, with no room for widespread price discrepancies or monopoly power.

Firms operating within oligopolistic markets develop strategic plans that dictate their pricing based on the actions of competitors. The Cartel Model describes multiple firms collaborating as a unified entity to control a market, effectively limiting access to outsiders. These firms adhere to a common pricing strategy that benefits all involved parties. Implicit price collusion occurs when the firms independent of explicit agreements set identical prices, especially in situations where vendors sell similar goods outside formal markets. This practice helps avoid destructive price wars. As outlined in the chapter on Oligopoly and Antitrust Policies, the concept of contestable markets emphasizes that the ease of entry and exit, rather than the market's structure itself, influences the pricing and output decisions of firms. Formal economic reasoning involves firms cooperating to maximize mutual benefits, whereas game theory centers on strategic planning where organizations anticipate and respond to the actions of others. Applying this to real-world scenarios, in street markets in Korea, merchants often negotiate prices with customers, but what most people do not realize is that they often coordinate with each other behind the scenes. If a customer threatens to buy from another vendor to get a better deal, the merchants are likely to share this information, leading them to maintain or raise prices to avoid losing profit or customers. In this way, vendors predict consumer actions and adjust their pricing strategies accordingly, often increasing prices for profit or to prevent losing business.