Profits, Entrepreneurs, and the Last Class ( December 12, 2011 )

Profits: Total revenues- total costs
What is the wage? It is just a contract that says what people will excatly be ding? Wage is to eliminate uncertainty
What is interest? It is a price that comes from the supply and demand of the market of bankable funds.
They want something today they would eventually get later. The persuasion is the interest.

Rachel, Professor Rizzo's Wife

• 30,000 usage as a secretary, owns a building $6,000 a year - owns saving cost at bank with $23,000, pays 10% interest.
• She then opens a shop - works it for self, uses for own building, sells her savings, borrows $20,000 for ovens.

Economic Profit: Total revenue-total explicit costs - Total implicit cost = $1,700
If you make the choice of being an entrapeneur, then you'll be $1,7000 richer.
If negative profit, less richer because the decision made to be an entrepreneur is not a good deal.
The change of that quantity of the pizza market has to do with the Zar. Raises the wages of the workers until that number goes away.
Profits for selling, but things change rapidly. Expensive 10 restrict competition. Prevent competition by foreign countries. Loses are key. Make people pay for sucking.
Loses destroys resources.

Curing and the ideals of a Entrepreneaur ( December 9th, 2011 )

In the market who is it who helps the people? The politicians and entreprenaurs? Who gets the profits and how does it help the people or buyers?

Is it bad thing that people are paid for helping others find a cure for a certain type of disease? Well, it would obviously be paid for since society graces the provider of a cure in order to multiply and cure others for the same benefit. Why would people not make money for curing people? Why shouldn't someone make a profit for having to save someone's life? So if you have to cure someone, the distribution to cure others is based on the entrepreneurs.

 

In order to do that and be successful at it, you have to figure out what people have to value and how it will benefit themselves as well as other people. The profitability rate is equal to the rental rate and the appreciate minus the interest rate.

The Sumptuary Manifesto (December 9th, 2011)

 Oh man, this article was interesting. The article in a nutshell for later reference is discussing how there are rules that must be followed in the sumptuary society however they are completely inverse of our own society, such as possessions as stuff in order to serve sharing as a commodity. It is everything base off of what we believe to be very totalitarian and unjust.

If this idea were still to be applied in today's society, is it possible for society to make it morally right by all disobeyed the set of rules? Would the entire idea become the central theme for a rebellion over the government's rules?

The rules were listing things that are against the law, things that should not be over consumed, and demands. There was a deliberate sign where others could not do to others because of the power they possess over a specific location of a city.

EWOT - The end of Mozilla

Earlier this week, I was listening to a podcast discussing the end of Mozilla Firefox, the browser used in many computers to supplement Internet Explorer for it's fast compact interface and high ordinance on traffic when using the Internet. It is also used as a customizable HUB to add the different add-ons that help you personalize and characterizes what you like when experiencing the internet. Earlier this week, there was an article that mentioned that Mozilla might have no revenue for users using their web browser and they might discontinue the web browser due to the changes of Google. You see, Google as I always saw it, is Skynet. The company controls many of our everyday tools such as our smartphones and the way we research. But since the release of Google Chrome, we would have to switch from our beloved Mozilla to Google's new system since the revenue Mozilla gains from Google will not be sued in their search engine anymore or on the interface Firefox provides. Google maintained a company as strong as Firefox, which to me is surprising because now that Google is capable to compete and gain profit for allowing Google Chrome for users on both Mac and Windows computers, the revenue for the companies are not shared and Google will be capitalizing more and more as weeks go on. It's not a bad change but I found it shocking for a company to pull a wild card on systems that they helped provide and are capitalizing with their own products. Hello Skynet.

Economic Incudence and and the Elasticity of Supply and Demand (December 7th, 2011)

Legal Impudence: Sale taxes (Buyers) + Who will say days

Economic Impudence: Who really pays
The Initial Price for buyers is 3.00 and sellers is 3.00.
The Final Price for buyers is 2.75 and sellers is 2.75.
Tax feed is buyers for 1.00 and sellers have none.
The economic burden or the real cost for buyers is .75 due to tax and sellers for 0.25.

Tax rates that are too high and income tax is too low. None of this is being shown in graphs, rather just for the well being. Which side of the marker is effected? Buyers!

price sellers end up keeping and buyers need to give to taxes. Raise taxes and the problem gets worst.
Econmic liability for taxes is completely independent to whom eats it.
Firms and workers split of that tax. There is no share of the burden and if it is all the time.
Elasticity of supply and demand, meaning that it will be by three, so that if there are higher labor and many workers are not sensitive to change to wages. Social security taxes will kill you, not the yearly taxes.

Who legally has to pay, it is the legal elasticity of demand and supply who allocates the pay. Buyers going to get a bigger burden of paying the excess tax. Most taxes however are paid by sellers. Subsidizes by 1.00 of the gasoline from the refiner; supply would shift out and be less for us. Refiners get 3.45 (referring to the graphs on the written paper., oil gets 80%, 20% to buyers. It is the relative supply and demand elasticity, nothing else. Buyers and sellers are better off but not the market.

The Economic Indicence of Supply + Demand Changes

Making something illegal does not get rid of them. Drugs tend to be stranger when illegal. It is costly to make something illegal and it is a waste of time. It is resistant to change as 33 billion get arrested to 1.5million. More people are in prison for drugs than people in prison for other reasons. Prices for cocaine have decreased. Marginal cost of going to jail is dropping to zero after two strikes.
Excise tax - The legal liability for tax is on the seller. But who is baring the burden?
$3.75 to $4.00 costs to buyers is 0.75 on the economic burden.
$3.75 pay money costs to sellers = 3-2.75 = $0.25

Prices does not increase by the amount of the tax. Taxes can be bad because they prevent trascations from happening. Costs of IRS is also costly to monitor, enforce, tax, cheating the taxes is bad, wasting time, and raising taxes.

EWOT - The Act of Freezing

For a college student, every dollar counts. We are surrounded by loans and the food on campus brings us great sadness and temptation to buy from other locations. But would students go their way to spend for three pieces of clothing that are equivalent to the warmth of a coat? Absolutely not, that sounds silly. But wouldn't this be ideal, in terms of saving money? Buying from Walmart would save students money from buying expensive coats and sweaters for the holiday season. But that wouldn't help other companies like J.Crew. More so, students would look generic and not be have a specific flare from each other, ranging from culture to attractive flaunts.

Students, such as I, would be willing to allocate all their resources to keeping themselves warm and having some type of class with their outfits. This not only benefits the market, but it helps us demonstrate to the world who we are and how we keep ourselves warm before the artic reigns over the University in January.

Golf Market ( December 2nd, 2011 )

The Golf course in a nut shell was how if you want tickets, you have to spend more money on them in order to get it. If you want to have the ticket for a cheaper price, then tough luck because the guy who is willing to pay more money will have a better opportunity making a purchase. It is kind of an unfair system that the NY Golf Shuttle uses, since it seems unfair for those who want to purchase tickets to see their pro golfers duke it out. But it also seems good since they are willing to allocate the tickets to someone who is willing to buy it for a higher cost. It would be hard to regulate this system since the general public has a range how much they would pay to watch a game of Golf. This brings up the demand to watch the game higher since the supply of seating can be ranged depending on how much they would allocate to see a game. A very interesting article, indeed.

Price Floor, Income Taxes, and Legalizing Drugs ( December 2nd, 2011 )

Price Floor is a good example for the minimum wage. Since there is more people working for that firm, they would want a certain amount needed to produce the maximum for the job, and the rest of the workers would be a surplus. The next workers that they would have to get would have to become better workers than the previous ones hired due the expectations from workers increasing.

• It allows firms to hire less workers since it costs more and more to hire each one. Workers would then get less employed and more would want to be hired but less would want the opportunity to.

It would result to the same outcomes as the price ceiling.
The better option is to tax workers and earn income tax instead of using the minimum wage for the workers.

Legalizing the drugs would not reduce the drugs produced on a smaller level. It would become multi scaled where markets and firms would try to produce them to buyers in different ways that they can appreciate the drugs. Yes, it would be beneficial for the market as a whole and eliminate the black market of illegal drugs but distribution of harmful drugs can have a dangerous effect on young ones who can be exposed to these drugs.

Rent Control and Outcomes of Price Ceiling ( November 30th, 2011 )

Price Control leads to less apartments that are available.
The problem with that is that there is more of a demand for apartments.

• There is a shortage of apartments and thus more of them have to either be built with allocated resources from sellers or sell them at a higher price in order to catch the surplus of apartments and meet the margin of supply and demand.

The outcomes of price ceilings is to reduce the availability of apartments and make them harder to  acquire. So they either had to lower the quality to make them affordable for others or try to fix it so that it would be dealt with at a regular price to the public.

• The black market emerged and bribes were created because of it. People had bids in order to jeopardize the way to obtain apartments, especially in New York City.

• The problem with that was the rise of mid-allocation. Other neighborhoods that were not controller were effected by this.

Fairness and rights played a strong role in the distribution of selling the apartments. Discrimination was also a strong role, where it provided a social goods to others. It made other apartments available and less people were available from the market due to that.
There was however in need of monitoring and enforcement, which costs money and was bad for society as a whole. Yet it was not available at the time because monitoring would cost money and it would be bad for society a whole.

Reminds me of the article where students worked together to find out where they would live on campus (this was last week's article).

Planners and Meeting the Margin ( November 28th, 2011 )

Last class, only the price he sees in order to make good decisions. What is the difference of the trial and error from the government versus the market? Just hypothetical. We need to get good outcomes that the market was not capable of doing.

30 bucks to pay for making a guitar would be bad. It is better below.
What is the problem making it for S4? Marginal cost of the 25$ dollars. When he makes a guitar the world is poorer by 25.
S2 costs 15 dollars, there is a 10 dollar allocation on the table. S2 and S4 would have to get together and split the cost to make the world richer.
Everyone can do better off if D4 gets his guitar and gives it to D2. The world is not hurt at all. D4 and S2 trading would make the world richer. Lie that you made the bike and I'll give you half the cut from it.

After 15 minutes of story telling,
Planners do not have enough information because it is changing rapidly. They forget what and where we need it. The only way to live in this complex world is to disperse/decentralize ideas the best way possible. Allowing different states would work in a separate ways without the federal governments approval.

Some properties of EQ.
Consider a stylized economy with 5 consumers and 5 selllers, not necessarily distinct.

Rent control, Price ceilings
Once you do a nice thing, you do a moral obligation to do it all the time.
Beat the competition out by checking out the obitenuary from the NY Times.

Markets with Knowledge (November 25th, 2011)

Thermostat is a good marketing device of knowledge. Centralized knowledge is good but uncentralized knowledge can be useful as well depending on how it is used. How prices can be signals to adjust to clear the market, depending if the price rices or falls depending on how people actually get it.
There is more than just things on the shelves;
Expectations are rapidly changing knowing in my life that these things shall always be on the shelves.
Titanium market;
20 million pounds of titanium, process if the prices were higher from 20 dollars per ton to 30 dollars a ton, then customers that use titanium would want to buy less, but how much less? It depends on how easy it is to do without titanium. Are there any good substitutes?
Wood or thin headed clubs that work wells, but it all depends on how etiquette it would be for all of it. What about digging tons of titanium? Depends on how expensive it will be to get the titanium from the ground. The shape of the supply curve changes from how it is being dug from the ground.

Demand curve will be flat if there is a change in the supply curve. If a price is at 25, then it would not be sustained because there would be a surplus and it would be brought down to 20. Suppose, Titanium can allow them to run on higher speed with a less frequency noise from passengers. Instead of it being 10 it would change to 20 millions.

Economic problem; there is not enough titanium to go around. Quantity demand would go from 16 and 10, which is a shortage. Identity the potential parties and work some type of solution. How do these things get solved? Higher a titanium Zared? What would they ahve to know to solve the type of problems?

LOTS OF STUFF THEY DID NOT KNOW IN A MILLION LIFETIMES. To solve this problem, answer the question, how much is the extra cost to get titanium? how to fill the paperwork? Labor costs? Environmental damage? First ton would happen, how would it change for the second ton? How do you store it all? It's very difficult.

Cut back as the demand curve when someone else changes in the market. New entrances come into the market, the demand curve is still the same for the consumer. The market price changes from 20 to 25, the quantity demand will be reduced by 8, so the change in quantity is equal to 2. The price is higher, so would allow others to find more units of titanium and how many producers respond to the change.How do engineers respond to it? At the intial price, they wanted 6, but they don't get it all, so they know that they will get 4 units. So the quantity change from 2 to 4, is then 2. Adding them up will be 6. 6 billion pounds are fitted away. Both came about when the prices changes. At 6 and 20, now 5 at 25 when it changes. (review video from Nov. 24th, 2011 for further information).

Euvolutionary Exchange (November 25th, 2011)

The Duke should have never allowed the lottery system to pass if they would have gotten angry by students exchanging money. They should have just kept the monetary system in the beginning since it has been working for student dorming since they couldn't allow the system to work. The Duke should have also allowed for it to continue to happen because they know that people are subjective to where they would like to live on campus sometimes. Then and there, that is when the students worked together in order to fix on their goals to where they would like to live on campus.

EWOT - "The Bank Account Merchant"

Today as I was buying a winter coat, I noticed something very odd. When the website I purchased my item from, it gave me an error. Not only did it inform me of this error, it proceeded to take money from my bank account as if the purchase was completed. I proceeded to talk to customer service and my bank account and both can agree that the "merchant" has yet to review the transaction and remove it from the history of my bank account. But this as many things in life, take a couple of business days for it to happen. By waiting however, one loses the flavor of even trying to buying online because they end up losing the money from their bank account to use for other things such as buy groceries. I could understand that without this transaction, the store can easily take more from my bank account than I permit them to get however the way they allow the card transaction first without completely knowing if it would give shoppers an error. Will I continue to buy online however? Yes I will because moving from my buzzem to get to a store is much more of a cost than having my order sent to my door with just a click away.

Surplus and Shortage; Supply and Demand (November 21st, 2011)

Supply and Demand curve in the market of acoustics:
Quantity of demand = Quantity of supply
Demand captures willingness and ability to pay.
This is where it is coordinated and how people's behaviors will to change when the prices changes.

Two questions:
How does each half of the market respond?

• Buyers and Sellers

What plans are satisfied?

• Buyers and Sellers

If the quantity is higher, when prices goes up, quantity demand decreases. Who's plan does this satisfy? Buyers!
They want the price to be high, they can try to slowly meet the demand. Given the price, they would not change the behavior.
At p= $900, quantity supply > quantity demand, by 400 sales.
When quantity supply exceeds the quantity demand does not expect the surplus, it only does at a specific price.
Quantity demand is higher, quantity price is lowered. Sellers benefit from it and buyers do not.
At $300, quantity demand > quantity supply by 400 guitars. The equilibrium point is the middle point of supply and demand.

When prices are increasing, shortages are being eliminated. Low prices can be relatively unscarse. Scarcity is the relative abundance of a good.

Two types of equilibrium:
If wood falls, supply will shift.
If electric guitars increase, demand will shift.

Pictures and their Significant meaning (November 18th, 2011)

The first image could be described as a way for Americans to not spend products if they are going to be wasteful. This is actually something that I disagree with because whatever it bought in the market will always benefit the economy. But in the poster it is almost saying that if you run with buying items to be wasteful than your only helping the enemy because they're are being less wasteful and using that to benefit their production and economy. The enemy perhaps was discussing the Soviet Union.

The second image describes a poster demonstrating to society should not buy cars because they would be riding with Hitler. It decreases the demand for cars and demonstrates that they would rather not have so many people using cars at the money where they could all share passenger seats. This could also be due to the supply of the cars in the United States.

The last one is pretty simple. It basically tells others to be honest to one another and try to depend themselves as reliable sources.

Rationizing under the Price System ( November 18th, 2011)

• How does it channel competition?
• Destructive
• Market economy to give goods to people. There would have been no advantage from the producers to the apples.
• Rights cannot because duties and strive as someone you don't want to be.
• Once a universal bureaucracy, you cannot understand how it will impact providers. If people want more, how will you bring "more" to everyone.
• Provide the care? No, the opposite. No investments on diagnostics and medical beds based upon that. Figured out to find the supply as there is an increase ind demand. 
• Right on ration, you allow people to do what they would possibly do to obtain a good.
• You don't have to ask in order for people to run on incentives.
• There is no vaccine policeman; we can allocate our resources ourselves.
• Moral succession does not work in society. Cheating on his exam to take the exam earlier to give it to another is to have the opportunity to get an A. Big mistake.
• Reallocation of the resources; without the price system, there is no way (signal) to demonstrate how to know who needs the water more than anyone else.
• Low demand where Ive live, high demand elsewhere to get them to gain from transaction.
• Somebody else values it more than now than before, morally bankrupt idea.
• Banning kidneys, black market is 100,000 more.
• What should determine who gets that is the safety net institutions.
• Rich and poor are no alike
• Inequality is greater today than WW1
• Is it possible to make health care independent?
• Is it always desirable?
• Why do people insit on talking about it?
• Rationalizing mechanisms and the advantages people retain when done to a price system?

 Importance of Money:
Exchanges the transaction
Leizure and the time lost
The double coincidence of wants
1/10th of a Guitar for a concert ticket.

Supply Rationing Criteria (November 16th, 2011)

Supply Rationing Criteria is what businesses can chargewhat other people value. Five fishes for 12 people.

1. Needs- Appeals instinctively but very vague because it has a who and a why.
2. Queue - first come first served. Still costly with lines.
3. The Lottery- Is it fair? It is easy to rig and may or may not get it.
4. Equal Shoves - Pure communism at a low cost or straight forward
5. Might makes Right - Fight and medical costs and planning is hard
6. Merit- deserves them for beauty, smart, and difficulty on accident.

Need is very costly. The people who need it will need to get it
The Higher the line, the higher the price

Evaluating the Rationing Mechanisms:
1) Where competition came from = scarcity. The compeititon is not in capitalism or communism.
2) Nature of competition and the destructive effort hasn't improved society from zero-sum
The constructive effort of price to produce and improve society. Still having the money if you lose and it is at a lot richer place.
What are incentives for producers to make delivery more valuable?

Supply (November 14th, 2011)

Supply Schedule depends on

1. Marginnal Cost
2. Total Cost
3. Total Revenues
4. Producer Surplus (Profits)

^ Each point is what you value at the margin for each burrito.

Marginal Cost vs. Average Cost

Supply vs. Quantity Supplied (Drawn Graphs)

Why is it curved up? It cost more to make more, which is the Law of Supply. The law of supply is not true since it has diminishing return production and spending resources.
Markets increase, capital prices increases to produce burritos.
Supply is a relationship, not a number. Particular part on the curve and it has a marginal oppurtunity cost.
Total cost is Marginal Cost 1 + Marginal Cost 2, which equals the total cost.
The total revenue is price times quantity.
Producer surplus is total revenue minus total cost, which makes profit!
Diminishing returns production
Second one counts more than the first one.

Impacts on the supply shift.
Any change in factor prices. (rent falls and it is cheaper to produce.)
Expectations matters more for the producers than consumers.
Any improvement in technology will increase the prices for producers but decrease them for consumers. If everyone is selling Pizza, instead of selling burritos. Sell pizza since it's compositional. The supply curve shifts.
n is equal to percent change in quantity supplied over the percent change of price on the good.

Market demand and market supply
Flatter or elastic
Easier to aggro supply curve. Sellers they always ask the average cost versus marginal cost to calculator price for burritos.
Prices are how we ration goods in the economy.

EWOT: A Deconstruction of Communication and Dishonesty

Ever since I entered this school, I knew that it would be in my interest to make as many friends as possible. From there on, it evolved to meeting many of my colleagues as possible. And now, it's an improved filter by meeting acquaintances who are trying to reach the common goal; get an outstanding GPA for Graduate School. These transitions did not morph overnight. Universities have becomes the students deconstruction of reality. What I'm trying to mention is that subtly, I believe people do not notice how much of an impact each one of us has on each other by communication.
Without communication, the goal of approaching an A in economics would be discrete. I don't want to beat a dead horse by saying this but the dishonesty for the exams is a prime example that has not escaped my mind. By cheating on the exam, one disrupts his communication with everyone and takes it upon himself to anchor the class into a pile driver.  Not only do we miss a class of recitation but we all placed under suspicion for cheating which can be counter intuitive with learning Economics 108. Just as Professor Rizzo said in one of his earlier lectures," self sufficiency shall only be your prime downfall to poverty." Except in this case there would be a sticky note on top of that quote saying, "unless you are a group of students who are pursuing the common goal of acing Rizzo's Economics class."