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#1 17-01-2018 10:33:25

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The economic values of both inputs and outputs

The economic values of both inputs and outputs may differ from their financial values because of market distortions created by either the government or the private sector. Tariffs Cheap Jerseys From China , export taxes and subsidies, excise and sales taxes, production subsidies, and quantitative restrictions are common distortions created by governments. Monopolies are a market phenomenon that can be created by either private or public sector actions. Some market distortions are created by the nature of the good or service. The value of society of common public services such as clean water, transportation, road services, and electricity, are often significantly greater than the financial prices people pay for them. The differences between financial and economic prices are rents that accrue to some group in the society and convey important information about the distribution of costs and benefits.

Price Restrictions

Price restrictions succeed in generating a broad consensus among the different countries Cheap Jerseys China , although particular countries’ practices do differ somewhat. All countries are very suspicious of restrictions that aim to limit the franchisees’ freedom to choose their own price, and it is difficult to find another topic where there is such unanimity. Resale price maintenance is virtually always unlawful. Only more limited restrictions – such as the use of recommended prices – are tolerated and even then sometimes only in exceptional circumstances such as promotional campaigns for the introduction of new products.

Quantity Restrictions

The effect of a particular quantity restriction depends on how it is applied. There are two ways to impose quantity restrictions. First, a quantity restriction can be imposed at the level of a firm such that the firm as a unit can only sell up to a maximum of the quantity allowed under the quota. This has been known to occur both in planned and market economies. Quantity restrictions of this kind can be called “firm specific” quota. The second kind of quota occurs when a quantity restriction is imposed on a group of firms in a market or upon an importingexporting country.

Price Ceilings - Maximum Prices

A government price control that sets the maximum allowable price for a good. In general there are two broad types of government price controls. Controls can stipulate a price ceiling, or a maximum price at which a good can be bought and sold. Some cities in the United States have price controls on rental apartments. Landlords are not permitted to change a rent higher than the maximum stipulated by the rent control law in these cities. Price ceilings are imposed by governments because of complaints that the market price is too high. The purpose is to help the consumers who must pay the prices. However, as we will see, price controls have harmful side effects that can end up hurting those consumers the law is apparently trying to help.

Minimum Price Perspective

Government price controls can also stipulate a price floor, or a minimum price. Price floors are imposed by governments in order to help the suppliers of goods and services. For example, the U.S. government requires that the price of sugar not fall below a certain amount in the United States. In the labor market Cheap Jerseys , the U.S. government requires that firms pay workers a wage of at least a given level, called the minimum wage. Internet Marketing Benefits Internet Marketing Benefits April 5, 2013 | Author: Jonathan Cawley | Posted in Advertising
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1. Pay-per-click Advertising. Sites like Google offer pay-per-click advertising for anybody interested in getting their message in front of the right segment or prospective purchaser. This method is very targeted and offers among the best and most popular kinds of web marketing. Marketers utilizing pay-per-click marketing only pay a cost, based on the competitiveness of a keyword or advertisement title, when a link is clicked.


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