EGT1 Task 2 A) Elasticity of Demand pertains to the relationship of price and need of a product. If a price increases will the demand increase or decrease? When a demand is elastic‚ it means even a small change in price can cause a large change in the quantities consumers purchase. (McConnell‚ pg. 77) So for example in an elastic demand if you reduce the price of a good the demand will increase a large amount and revenue then increases. When the is inelastic‚ according to McConnell it means when
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EGT-1 Task 3 Revised A. Summarize the four major pieces of legislation collectively known as the Antitrust laws. United States antitrust law is a collection of federal and state government laws‚ which regulates the conduct and organization of business corporations‚ generally to promote fair competition for the benefit of consumers. The four major pieces of legislation known as the Antitrust Laws include: The Sherman Act‚ The Clayton Antitrust Act‚ The Federal Trade Commission‚ and the Celler-Kefauver
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EGT1 Task 4 The world is changing in many different areas‚ and one of the many different ways it’s changing is how businesses change and continue to grow. When businesses grow and expanded there are possibilities of gaining access into new markets that need to be understood before entering. Business markets in China are completely different than markets over here in the United States. We need to take a look at some of those differences. A. There are three major cross cultural Differences in the
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EGT1 - Economics and Global Business Applications Course of Study This course supports the assessments for EGT1. The course covers 7 competencies and represents 4 competency units. Introduction Overview You will learn the concepts and tools needed to make optimal decisions such as the following: marginal analysis; supply and demand; competition; anti-trust laws and government regulations; international business environment; international trade; global operations; and cultural sensitivity
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Marginal Revenue: Marginal Revenue can be termed as the change in the total revenue from an additional unit that is sold by a firm. Example‚ the total revenue when 10 units are sold is $50‚ and total revenue when 11 units are sold is $55. Marginal Revenue in this case will be (55-50)/(11-10) = $5. One can compute the total revenue if the marginal revue and the number of units sold. If the marginal revenue of a product is zero than the total revenue will not change with an increase in the number
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Marginal Analysis Economics & Global Business Applications‚ EGT 1‚ Task 1 A. Explanation of profit maximization The total revenue‚ TR‚ is the overall amount of all sources of a business’s income. It consists of total sales or profit‚ over a period of time. The TR can be calculated by taking the price and multiplying it by the quantity. For example‚ if a business decides to retail another product and the total revenue does increase‚ thus the marginal revenue would be greater than zero
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Antitrust Laws There are 4 major acts created that are known as the Antitrust Laws. In the 1870’s and 1880’s‚ the Sherman Act of 1890 was created. This act made monopolies and conspiracies that tried controlling trade a criminal offense. This act exists with 2 provisions‚ the 1st is that every contract‚ blending in the form of a trust or otherwise‚ or attempt to conspiracy‚ in limit of trade or market among several States‚ or with distant nations is acknowledged to be unlawful.” nd The 2 states
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WGU EGT1 Task 3 Student# In this essay I will discuss a few terms and how their relationships apply between regulation and market structures‚ as well as how regulation policies affect the market. A) There were 4 particular Antitrust Laws that were enacted with the primary purpose of protecting consumers‚ striving to achieve fair competition in the market place‚ and to achieve and allocate efficiency. The 4 Antitrust Laws that are major pieces of legislation are; The Sherman
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A. Discuss elasticity of demand as it pertains to elastic‚ unit‚ and inelastic demand. Elasticity of demand is gauged by the percentage of change in demand when the price of an item varies. If the change in the quantity demanded is greater than 1 the demand is elastic. Elasticity of demand is calculated by ED=quantity demanded/decrease in price. If you reduce the price of milk by 6%‚ and that causes an increase of quantity demanded by 9% the demand for milk is elastic (ED= .09/.06 = 1.5).
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A. Concern in the late 1800s with society’s economic well-being‚ public pressure and the market control by oligopolist and monopolist also known as trusts the government enacted antitrust legislation. The Sherman Act of 1890 was the first legislation aimed at declaring restraint of trade and monopolization to be illegal. With the Sherman Act being somewhat vague the Clayton Act of 1914 sought to further empower the Sherman Act by banning price discrimination‚ prohibiting tying contracts‚ interlocking
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