Market Model Patterns of Change Instructions Essay

Market Model Patterns of Change Instructions - Essay Example Market Model Patterns of Change Instructions The production of petroleum by the industry especially, in USA has introduced a large distributor to the total petroleum in the global economy. Meanwhile, it is a non-renewable energy substance that can be extracted from the world after a certain period and converted into usable fuel. Therefore, the price of the petroleum is obtained by the demand –supply mechanism around the world economy, and slight shortage of petroleum can affect its demand and supply of other possible industries in the market. According to Galbraith (2001), when the monopoly power is practiced by an industry at a moment in time, and the degree of monopoly fluctuates, the industry specific product price will also change. In case, the pattern of change through time can be the indicator of comparison and disparity in economic performance in the petroleum industry. The petroleum was an example of monopolies to be affected in anti-trust action by the US government, and resulted into development of smaller comp anies. The industry expanded by increasing sales and undertaking major acquisitions, and after buying competitive industries in the market, the industries shut down those believed to be inefficient and kept the most powerful. The industry has involved in the discriminatory practices in order to have monopoly power over pipe lines. It also applied unfair practices of cutting local prices at the point where the competitors were severely affected. Technological changes bring the pattern changes in the firm because it is much simple to outsource both service and manufacturing to distributors in other countries. The increased competition promotes the pressure of industry to attain lower units’ costs as a means of maintaining market share. Finally, the nature of the industry trade patterns has undergone importance changes in order to have permission to issue licenses and permits in distributive trade market. Short-Run and Long-Run Behaviors of Monopoly An industry with monopoly mar ket model is considered to have price setting power, and it will strive to earn high levels of profit (Galbraith, 2001). However, the industry is limited by the position of its demand curve that means monopoly cannot set price that clients cannot afford. Petroleum Industry is the sole supplier in an industry, and it takes market demand curve as its own demand curve. Therefore, it faces a downward sloping average revenues (AR) curve with a marginal revenue (MR) curve twice the gradient of AR (McEachern, 2011). In the monopoly, there is optimum firm determined by long run profit maximization in relation to the market. According to McEachern (2011) the short run average total cost curve is tangent to the horizontal, and long run average cost curve is always at its minimum point. In the short run, if the demand for the petroleum products is high, the industry will increase the price and the quantity of the products. The industry can achieve this by increasing output by employing more la bor and raw materials, but cannot change the fixed plant. According to McEachern (2011) the long run industry curve is horizontal because when demand increases, raising prices and profits for monopoly industry. As a result, there is an increase in supply prices, pushing prices back down to original in the level in the long run, so that the profits are zero. Therefore, the shifting demand and supply curves trace out a horizontal long run industry supply curve. Areas for the Industry That Could Lead To Transaction Costs There are various transaction costs that the petroleum

Effect of Sound Exposure on Oysters Research Proposal

Effect of Sound Exposure on Oysters - Research Proposal Example Due to the commercial nature of oysters, developing ways to improve their growth is very valuable. However, no association between sound waves, specifically the effect of high versus low intensity sounds, on the growth of the Pacific oyster have ever been studied. Sound exposure at high frequencies and intensities has been studied with respect to other plants, animals and fish, and the general conclusion is that sound has either no effect, or a positive effect on growth and survival upto a certain level. Specific Aim: The purpose of this research study is to determine the effect of increasing sound exposure (the intensity and frequency) on (1) the growth rate and (2) the survival of the Pacific oyster, Crassostrea gigas. Hypothesis: The working hypothesis is that increasing the intensity and frequency of sound exposure will cause a corresponding increase in the growth rate and survival of the oysters until a high level of sound intensity and frequency. Further, increasing the frequen cy and intensity of sound beyond that point will lead to either no further increase in growth, or cause a damaging effect and slow down their growth rate, or cause oysters to die. This study will be carried out by using oysters from an oyster farm. There will be 2 experiments involved, one will use oyster eggs and the other will use newly-formed larvae. This would be an experimental study using 6 groups of oyster eggs and larvae: 5 groups of eggs will be exposed to sound vibrations of increasing intensities and frequencies as follow: (1) 25 dB and 200 Hz, (2) 50 dB and 400 Hz, (3)75 dB and 600 Hz, (4)100 dB and 800 Hz, and (5)125 dB and 1000 Hz. The 6th will be exposed to no sounds (silence). Similarly, 6 groups of oyster larvae that are freshly spawned will be exposed to sound as detailed for eggs above. The total sample size of oysters would be 30 (5 in each group). 50 eggs will be used in each eggs group. Duration of the study would be 3 weeks, with the site as the local oyster f arm. Sub-aim (1) To determine the effect of increasing sound intensity and frequency on survival during the first stage of oyster life: hatching from eggs to larvae to form ‘spat’. For this experiment, oyster larvae will be used, as normally only a small percentage of eggs spawn into larvae, we will determine whether more larvae are spawned in the presence of sound. Sub-aim (2) To determine the effect of increasing sound intensity and frequency on oyster growth from the larvae stage to the juvenile form over a period of 3 weeks. This experiment will use larvae newly spawned, and the mass of larvae at the end of 3 weeks will be measured, with some larvae exposed to sound, others to silence. If the mass of larvae that were exposed to sound is greater than the group that was in silence, it would prove the study hypothesis. Sub-aim (3) To determine the optimum intensity and frequency of sound at which the highest oyster growth is seen. Sound exposure will be given using sou nd fields into the water, sound intensity of 25 dB, 50 dB, 75 dB, 100 dB and 125 dB, and corresponding frequencies of 200, 400, 600, 800 and 100 Hz will be given to oyster eggs and larvae in different groups, and the mass of oysters will be measured for each group at the end of the experiment. As each group of