Microeconomics and Opportunity Cost

Paper Summary:

This paper discusses microeconomics. It suggests that the economic world is driven by its intense desire to produce as much as possible, but since the natural environment possesses less and less resources, entrepreneurs must be aware of the resource allocation they implement. The paper then discusses the opportunity cost and how it fits into this description.

From the Paper:

"The pure monopoly refers to the situation where a single company controls a particular industry. They are the sole provider of that good of service and can influence the price and supply as they wish. Pure monopoly is characterized by the lack of alternative or substitute products and numerous barriers to entry. Aside from these characteristics, the monopolistic industry can also be generated by a certain patent or right to produce the item, right not granted to other companies. "Examples of monopoly are public utilities such as gas, electric, water, cable TV, and local telephone service companies, professional sports teams, DeBeers, and Alcoa. Also, monopolies may exist at the local level because of geographic location.""

Sample of Sources Used:

• 2008, Economics, Financial Dictionary, http://financial-dictionary.thefreedictionary.com/Fundamentals+of+economics, last accessed on January 30, 2008
• Smidman, M., G.C.S.E. Business Studies, Factors of Production, National Grid for Learning Cymru, http://www.ngfl-cymru.org.uk/vtc/ngfl/bus_studies/gcse_m_smidman/index.htm, last accessed on January 30, 2008
• 2000-2008, Full Employment, Production Possibilities, AmosWeb Encyclonomic Web, http://www.amosweb.com/cgi-bin/awb_nav.pl?s=wpd&c=dsp&k=full+employment,+production+possibilities, last accessed on January 30, 2008
• The Process of Product Development..., KC Concepts, http://www.kcconcepts.com/kc_concepts.htm, last accessed on January 30, 2008
• 2008, Opportunity Cost, Investopedia, A Forbes Media Company, http://www.investopedia.com/terms/o/opportunitycost.asp last accessed on January 30, 2008

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