Along with comparing and contrasting these four elements, we will explain labor equilibrium, select Cash Well Financial to Identify the market structure, describe Cash Well’s characteristics ND summarizing the elements that affect labor supply and demand. What Is a public good? According to Dilatory. Com, public goods are goods or services that are common, and have no conflict. Public goods are capitalized through tax collections. Public goods usage does not decrease the amount available to others, and public goods are also available to those individuals who do not pay for it.
Examples of public goods are military, public bus transit, insurance and broadcasting. A private good are goods or services that may not be available to everyone, which makes the goods or revives clubbable. Private goods are usually paid for by a private firm. Private goods are particularly made for profit. Examples of private goods are food, clothing, cars, and individual electronics. Common resources are goods and services which gives users real benefits. Like public goods, which non clubbable goods, but they are opposing goods and services.
It includes goods and services that everyone has a right too. It may Include Items that the public has paid for the production of tax collection. Common resources are goods and services such as public parks and water. Overage of common resources can lead to destruction of the resource overtime. A natural monopoly happens when a company has a large increase in price advantage over the competitors in the market field. Like a private goods, a natural monopoly is particularly, but not rivalry. Government has the ability to regulate the natural monopolies, which will prove that people are charge a fair cost.
Examples of natural monopolies would be electricity companies and water companies. Equilibrium is the point on the graph where the supply and demand meet. Labor raked equilibrium is affected by the supply as the equilibrium point would change according to the number of workers. The demand will also affect the equilibrium as companies are demanding Jobs. The labor market will reach equilibrium as the numbers of workers are willing to work for an ensured price equals the amount of workers employers are willing to hire.
If there Is a high demand and a low supply, businesses will typically relocate to an area with more broaden possibilities. On the demand segment is represented the employers. If the number of employees is high, he amount of work will be low. An increase in labor causes the labor demand curve to shift to the right, increasing the equilibrium wage and the level of unemployment. Furthermore, if the supply is high, and the demand is low, there are fewer people waiting for unemployment. Consumers want to receive products at the lowest cost and producers want to sell their products at the highest profit margin.
For example, the checkout lines in Wall-Mart, if one lane is busy the customer may checkout through another register because it minimizes the work for the clerk and less time he customer has to wait. “Like monopolistic competition, pure competition provides an easy entry and exit into the industry since there are large amounts of businesses producing homogeneous products. Homogeneous products are indistinguishable and hundreds or thousands of small producers making the product available to the markets provide the source of pure competition to exist.
In order for markets to be classified as having pure competition there must be enough sellers that one can raise its price without losing all its customers to other sellers” (Weasels, 2000). Organizations are the same that are not in control of product over pricing. Cash Well Financial is an organization that fits into this category. It is one the numerous consumer loan companies that provide small loans to consumers when the banks and other lending companies will not. This company provides consumer finance loans as well as bill consolidation and small personal loans.
Consumer finance companies were established when banks made the criteria for obtaining a loan difficult. Most consumer finance companies eke, Household Finance, Cit Financial, and Wells Fargo are other companies that which are also regulated by the state, and provide loans and other financial products to customers that may not qualify at a bank. Most of these companies operate on a profits based pay scheme. When the company exceeds loan volume and collections are good, the employees as well as the president of the company expect overwhelming profits. When profits are good it usually affects the employees’ salaries and wages.
When the collections are bad and the loans are lower than projected, it effects salaries in the same way. Many companies, like Cash Well has cut their bonus programs to suffice for low profit margins. It is the same as if there was a stable market for credit and the supply curve for loans shift leftwards. Therefore, a lower amount of loans will be supplied at a given interest rate. If the demand curve stays the same and the interest rate of the loans increase, then fewer loans will be made. A new equilibrium is reached when the demand curve is more to the left, where lower amounts of transactions take place at higher interest rates.