Recent Articles analysis, macroecomonics

Project description

write 3 separate analysis of different articles, each around 600 words. Can be uploaded as 1 Word Document

the instructions for 1 analysis are following :

The main form of written assignment for this course will be commentaries on recent articles from the press: journals or reliable website. ( do not use the personalized

blogs)

These assignment should be more than 600 words but less than a 1000

The article should be handed in along with a commentary that explains the economic theory behind the article. ( may be you could create a hyperlink so i can download

the article with the document?)

The commentary are not simply the summaries or explanations of the article, they should relate to the economic topic covered in class ( choose 3: government shutdown

in US, philips curve, multiplier, inflation and deflation)

Graphs, formulas and calculations should be included.

Thee articles must be recent, 3 months the oldest.

Below, please find the similar work ( one analysis for 1 article) that earned A last tim

Monopoly
For years, specific space entrepreneurs have enjoyed monopoly across the globe. Space Exploration Technologies Corp or SpaceX is among the space enterprises which are

seeking to put a stop to space monopoly (Hennigan, 1). Monopoly basically, is an enterprise that is a sole seller of goods and service in a certain industry. Under

such circumstances, lack of government intervention results in exploitation of consumers. The consumers are entirely responsible for price determination and therefore

they are likely to set high price so as to earn more revenue. Monopolistic business ventures tend to develop certain mechanisms that inhibit entrance of other firms

into the industry. Monopoly can be achieved through sole control of essential resources required for the production of goods and services. Due to the unhealthy market

conditions associated with monopolies, most governments have tried to eradicate it, since it is tragic to the economy. From the article, Lockheed Martin Corp and

Boeing Co. are the key players or rather firms which can be deemed to be monopolistic; they serve solely in the market, set prices and control the entire market’s

operations.
The Los Angeles Times presents an article on monopolies about termination of the spy satellite monopoly by the space entrepreneur. Space entrepreneur Elon Musk is up

against largest weapon markers, Lockheed Martin Corp and Boeing Co. for a military contract that is worth $ 70 billion. Boeing Co. and Lockheed Martin Corp. which were

previously preferred by the pentagon to handle such contracts are now facing stiff competition from Space Entrepreneur in a bid to eradicate monopolies (Hennigan, 1).

The launch of the government’s pricey spy satellite contract is becoming competitive since it is no longer a two-firm affair.
Thus, once an opportunity is created for other firms to access the market in any monopolistic setting, competition is likely since the barriers to entry will have been

removed. According to this article, the space entrepreneurs will be facing a stiff competition as the government will allow several firms to take part in the launch of

satellites. Therefore, this would make the space market to be at equilibrium.

A monopolistic business venture aims at maximizing profits by setting output where MR = MC. This will be arrived at output Qm and price Pm.
One major reason behind previous monopolies, according to the article, is the high cost of setting up the satellites. Thus, firms have to form an alliance in

order to manage such exercises which take ages to complete. For instance, Lockheed and Boeing companies were forced to form an alliance in the year 2006 since the

market demand could never have sustained two chief competitors at the same time. Such alliances are meant to cut costs and reduce the time for launch preparation

(Hennigan, 1).
Customers in a monopoly market do not determine the prices of products. The Air Force being the chief consumer of the spy satellites is against competition in this

market. It cuts down on the total number of launches since it sees no need of increasing the number of satellites in space. With the increasing number of firms which

are willing to compete in this market, allowing for competition would be an appropriate move for the Air Force since it will have to select from the most friendly and

affordable bid among the many offers.
Moreover, the idea of the government paying a space company approximately $1 billion every year, whether a satellite is launched or not, is not logical. As much as

this money supports the facility and the already launched satellites, this sum of money is considered much for such operations. Thus, competition in this market would

give room for diversity and quality as firms will be struggling to remain the best and win the bid.
.

Work Cited
Hennigan, W. J. Space entrepreneur seeks end to spy satellite launch monopoly. Los Angeles
Times. 2014,April 13. Retrieved From: http://articles.latimes.com/2014/apr/13/business/la-fi-rocket-launch-showdown-20140414

                                    
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