Economics Theory Applications Research Paper Example | Topics and Well Written Essays - 2000 words

Economics Theory Applications - Research Paper Example According to Mandal (2007, 97) this problem can only be determined based on price mechanisms that has been known to use forces of supply and demand that characterize different products. This is because price mechanism is used to refer to the mechanism that uses prices of products as a signal to both the buyers as well as sellers in any market as to what the market has in store for them, and what trend to follow. This is what forms the core of microeconomic theory where demand, supply and quality prices have a significant role to play. This paper explores the Malaysian market by focusing on Astro satellite TV monopoly to determine the problems that Malaysian satellite television’s market is facing and attempt to solve the problem using microeconomics theory. Microeconomics theory This theory stipulates that demand is the willingness and the ability for a consumer to buy a particular product within a specified period of time. Therefore, if all other factors are held constant, it follows that as prices of goods increases the demand decreases proportionately (Tsoulfidis, 2009, 30). This means that demand and price are inversely proportional. A lower demand of goods means a reduced amount of quantity purchased by consumers. The amount of goods consumers buy at higher prices decrease because as the prices go up, so is the opportunity cost of buying that good or service. People will therefore tend to buy inexpensive goods or services, and avoid buying that product that will force them to forego certain goods or services that are of more value to the consumer. This theory is applied mainly in a monopolistic market where it is only one supplier of goods and services with many consumers that exist, eliminating the case of competition (Ghai and Gupta, 2002, 2). What is Monopoly? Monopoly is a situation characterized by the existence of a single producer in a market who is in control and not with any close competition whatsoever of supplying a particular product. Th is means that the elasticity of demand tends to reduce to almost zero. A company enjoying monopoly has some benefits such as the ability to be innovative with the development of its product and the domination of the demands of the customers (Kirzner, 1997, 65). This is, in addition to, setting its own price standards, orderliness and predictability. The constraints that happen to be either legal or natural protecting the monopoly of the firm from its competitor often generate the blockade to entry to the monopoly market. To make the best use of the profit, monopolist should generate at an output that the marginal cost is equal to marginal revenue. However, the biggest problem of monopoly market is that monopolist is a price maker rather than those price takers in a competitive market (Dwivedi, 2002, 38). This is because the monopoly firm will only continue enjoying maximum profits so long as entry of other firms into the market is blocked. This may either be naturally or artificiall y. Therefore, the firm will continue to produce, and even function at a loss on condition that the losses the firm makes do not in any way exceed its fixed costs (Ghai and Gupta, 2002, 3). This means that the firm will only close when the losses are in excess of the fixed costs of the company. With this advantage, monopoly will charge at the price which is in excess of the marginal price and marginal income, for whatever

History of islamic Essay Example | Topics and Well Written Essays - 1750 words

History of islamic - Essay Example There are five fundamental practices of Islam required among the Muslims, the followers and believers of Islam. These are the profession of Islamic faith, prayer, charity or zakat, fasting and hajj or pilgrimage to Mecca (of which Muslims are encouraged to make one pilgrim to Mecca at least once in their lifetime). Muslims are known for their devotion to Allah for they commit to pray five times a day and they gather is Mosque to worship Allah. Origin of Islam The followers of Islam believe that Islam already existed since the time of Adam. it is believed however by non-Muslims to have originated in Mecca and Medina through Prophet Muhammad. Islam expanded to the world in the 7th century and transformed nomadic people in desert into major players of world civilization and Prophet Muhammad was at the helm of that transformation. Prior to advent of Islam in the 7th century, Arab people lived on the Arabian Plate on the south of Hedjaz as nomads which Prophet Muhammad belonged. Prophet M uhammad began receiving revelations about The Holy Quran in 610 beginning when he was forty years old. Thus, Muhammad’s death in 632 was a major blow to the then nascent Islamic community. The Muslims however responded to this challenge by establishing the institution of Caliphate that would ensure the perpetuity of historical Islam (Ahmed). After the death of Prophet Muhammad, his friend Abu Bakr who was the first adult who embraced Islam became the first caliph. He was succeeded by Umar after two years who became caliph for a decade. During Umar’s caliphate, Islam burst extensive from east to west conquering Persian empire, Syria and Egypt and importantly the capture of Jerusalem (Barkati.net). After Umar’s caliphate, Uthman succeeded him and assumed the caliphate for 12 years. Islam continued to expand during this time and was the one who was responsible for distributing the definitive text of the Holy Quran to reach all the realms of Islamic world. Ali then followed him who was known for his literary genius as well as his bravery in battle. Ali’s death marked the end of the rule of the â€Å"rightly guided† caliphs that started with Abu Bakr, then with Umar and finally with Ali. After the rule of the rightly guided caliphate, the Umayyad caliphate followed suit in 661 and was to rule the Islamic world for a century. During this time, the capital of Islam was moved from Medina to Damascus. Islamic conquest continued to expand during this time extending from western borders of China to western France. It also included North Africa, Spain Sind and Transoxiana in the East. During this time also, the foundation of the social and legal institutions of Islam were established (Barkati.net). The Umayads were succeeded by the Abbasids and again moved the capital of Islam to Baghdad. During this time, Islam was in its Renaissance as it became the center of learning and culture. It became as the center of the civilization of the worl d during that time as old texts of scholars such as Aristotle, Plato, Euclid and other thinkers were translated into Arabic to be studied extensively. The Abbasids caliphate lasted for more than 500 years until their power eventually faded and reduced to figurative heads because military power were then held by sultans and princes. When the Mongol ruler Hulagu captured Baghdad in 1258, the Abbasid caliphate finally ended as well as the great city of Baghdad together with