TAILIEUCHUNG - Ebook Economic (8th edition): Part 2

(BQ) Part 2 book "Economic" has contents: Perfect competition; monopolistic competition, oligopoly, and game theory; wages, unions, and labor; the distribution of income and poverty; public choice - economic theory applied to politics; international trade; international finance; globalization;.and other contents. | chapter Perfect Competition Setting the Scene The following events occurred on a day in July. 11 : 12 A . M . Pam Weatherspoon owns 2,000 shares of Wal-Mart stock. She has been thinking about selling 500 shares of the stock. Today, she goes online to find the current selling price of Wal-Mart stock; it’s $ a share. She decides to sell the 500 shares at this per-share price. 2 : 3 0 P. M . Ricky Amador started his company, Amador Electronics, 10 years ago. Last year, he took a loss—his first loss in 10 years. He’s thinking it might be a good idea to go out of business. 2 : 5 4 P. M . A . senator is speaking on a newly proposed tax bill. Some members of the Senate are walking about, some are at their desks reading, and a few are listening to the . senator speak. The senator says,“Certain companies in our country have been reaping huge windfall profits over the past year. I am not against profits—not when people © CREATAS IMAGES/JUPITER IMAGES 20 work for them. But when huge profits are handed to certain firms not because the firms did anything to make their product a better product, not because they served the buying public better, and not because they built a better mousetrap, well then I have to say that something is wrong with those profits. In the America of today, certain companies are reaping huge windfall profits simply because the demand for their product increased. Unearned profits must be taxed at a higher rate than earned profits—or else we do not live in a fair and just society.” of the networks hottest TV shows. Last year, the show was the network’s biggest profit year, the stars of the show are asking for huge salary increases. The TV executive wonders if the show would be as successful without two of the six major cast members. She also wonders if the stars are worth the salaries they want. ? Here are some questions to keep in mind as you read this chapter: 3 : 0 8 P. M . Steven Pickering manufactures and sells small

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