Comparison of W.S Jevons’ and A. Marshal’s Thoughts
The economic market is characterized with different economic agents whose objective is to obtain high satisfaction levels from market activities. As it is the case, main economic markets talked about include labor market, commodity market and foreign exchange market (Chin & Hock 212).
Every market has its economic actors who aim at deriving maximum satisfaction from market operations. Therefore, optimization has become relevant in every segment. This is to say that many companies aim at cutting down on production costs and maximizing on revenues as well as output obtained from different production processes.
Consumers also aim at getting high utility levels from their consumption bundles and minimizing their expenditures. From the two cases, economic actors are known to be rational in their decisions to purchase and sell products and services in different markets. Under given circumstances, the economy can operate efficiently in a monopolistic market structure where suppliers and or firms are the only determinants of market prices.
Similarly, consumers can consider different modes of operation especially those that prevent sellers from exercising their market rights. In the event of such occurrences, the market is considered monopolistic and it is very common in labor markets. This paper therefore analyzes situations are offered by Alfred Marshall and William Stanley Jevons.
It happens that Jevons and Marshall are neoclassical economists. The two economists employ approaches that provide economic analysis based on determination of market prices, income distributions and outputs in different markets as per demand and supply. The two economists according to their views strongly believe that economic players pursue the urge to maximize their utility area to certain constrains including the cost of production, competition from other actors and individual income.
Jevon’s thoughts in a close examination reveal that an economic actor has the right to decide the market to operate in, choose from an existing market and settle for the best choice from various commodity products as they emerge from the market. According to Jevon, economic good should at all times have a characteristic of recognition by economic actors who are in a position of satisfying their needs (Chin & Hock 217).
According to economic actors, an economic good should bring pleasure to its producers other that causing just pain. This is the concept by which, different scholars derive the meaning of consumer and producer production. Economic actors according to Jevons, in specific consumers make valuable judgment on level of utility they derive from consuming a service or product (Chin & Hock 219). Jevons offers his assumptions that individuals may be willing to spend more money on additional commodities consumed to the point where marginal utility begins to diminish.
With the consideration, one can easily assume that utility is highly measurable in terms of units of products consumed. Economic actors according to Jevons also maximize on level of utility derived from a product through prioritization because their actions are fully constrained by the ability to purchase.
Jevons in his prediction also argues that the urge of an economic actor is to optimize even in little market operations to the extent of making choices similar to those they make when purchasing (Bazen & Stephen 215). Jevon to this extent offers a utilization method that provides a shift from common optimization models. His introduction of a model that depicts operations of an economic market places his work in critical point for criticism.
The model of operation for Jevon is based on the concept that market actors operate based on their interests. This is to say that any additional value consumed or produced should provide the highest levels of satisfaction to an economic actor. If a market is characterized with production of goods in bundles for consumption, the bundles namely X and Y, a utility that maximizes the actor will offer the same quantities of goods X and Y, to ensure equal Marginal Utilities (Bazen & Stephen 125).
That is to also say, Mux=MUy and this is contrary to Marshall’s view in regards to additional utility generated from consumption of an extra commodity unit. Marshall’s view also revolves around prices of different commodities as the only determinants of the level of satisfaction of an economic actor.
Marshall intends that any actor in the market would be more than willing to pay an extra amount for any additional utility derived from consumption of a specific product or service. He also intensifies his rationale by making a market proposal that it has ability of supplying different bundles including bundles X and bundles Y, where the ratio of the two Marginal Utilities of two goods should be equal to their prices (Bazen & Stephen 126). To be exact, Mux/MUy=Py/Px so that Mux.Px=MUy.Py.
The equation representing utilization of good X according to Jevons, is such that U=f(X) and the marginal utility of goods (MUx) would be a derivative of the function U=f(X), and to be precise du/dx=f’(x) =MUX (Cropp &Truman 278). In this relevance, Jevons employs differential calculus to provide a model that can be efficiently used to determine total marginal utility of a product.
Total utility for an economic actor according to Marshall on the other hand is given as U=f(x, y), so that by employing cross partial derivatives, the total utility of the actor is generated. To be exact, du=f’(x) dx + f’(y) dy (Cropp & Truman) 278. However, Marshall and Jevons accept that the willingness of an actor to pay for a specific service or good largely depends on marginal utility of the product.
Marshall proposes that marginal utility would be very important in analyzing market trends but there is not in determining its demands as argued by Jevons. Marshall’s point of view indicates that the sole factor that affects demand and supply of goods and services is market price. His view offers support to theories presented by David Ricardo and Adam Smith in their classical thinking (Messina, Michelacci, Turunen & Zoega 143).
Jevons intentions still under different market operations shift to operations in a labor market. His analysis focuses on demand and supply of labor under the right market competition (Vettori 334). The supplier of labor services in labor market is the employee or the worker while the demander of the services is the firm or the employer. The interaction between an employer and employer in regards to exchange labor services for wages results into creation of a labor market.
The market operates under set conditions and each actor has a unique motive from the others. Generally, the aim of an employee is to maximize his or her wage and work within the shortest time possible. An employer on the other hand expects the employee to dedicate his or her time for the work under the lowest pay. There seems to be a conflict of interest between the two and each participant tends to optimize the benefits that would arise from his or her role in the market, based on market labor analysis.
It also seems that there is an initial disutility amongst workers as per Jevon’s theory of labor amongst the workers in production of different products and services (Vettori & Stella 110). He presupposes that a reduction in output level in initial operation stages can be efficiently explained by lack of motivation amongst the workers and the drive to produce.
To be precise, workers utility happens to diminish as they produce more output at the initial production stages. Jevon bases his theory on the concept that with waning marginal product of labor, any employee can provide his or her services to the point where the last unit of marginal utility produced is equal to marginal disutility of the unit of labor used to produce it.
As a result, labor could be optimal (Cropp & Truman 301). Even so, Jevons tends to fail to take into consideration interests of the firm when presenting his arguments. His theory does not explain how the company would optimize in the event where an employee refuses to provide his or her labor services to the company.
According to Marshall, the operation of a firm and workers is mainly based on employment terms and objectives of the firm (Bazen & Stephen 127). The main objective of a firm is to make the most of its output and at the lowest price possible. This could mean that the cost of employment has to go down in the event where a company wishes to cut down on its operation costs, or other ways would be used to recover costs of employment (Messina, Michelacci, Turunen, & Zoega 144).
A firm, in an effort to maximize on its profits would want to hire more employees to the point where marginal productivity of each employee is equal to the salary paid by the firm. According to Marshall, MUL=w/p under employment terms, where MUL refers to marginal product of each employee and w is nominal wage while p is output price (Bazen & Stephen 201).
Additionally, Marshall proposes that market prices (P) of most goods would equal their production costs, calculated after considering production costs. More firms would gain market entry is they were to charge high prices thus creating high competition thus, the prices of different goods would drop (Messina, Michelacci, Turunen & Zoega 156). Consequently, with reduced prices of goods, wages of workers would also rise alongside the productivity.
To this end, Marshall proposes that firms and workers under a healthy competition gain equally. This is quite different from what Jevons proposes.
In conclusion, the two theories analyze various economic situations and the role played by economic actors in a given market segment (Bazen & Stephen 131). The entire role of economic actors is illustrated in the two models and it helps in explaining explicit actions taken by different product suppliers in creating prices that match their production processes.
Whereas market forces works towards creating steady conditions in market prices and goods supplied, it would also be very important if a person analyzes critically the actions of economic actors towards price change as proposed by different economic theories and policy makers. The market would in general be even when the interests of producers match the interests of the consumer, in which case, the market is considered to have cleared.
Bazen, Stephen. Econometric Methods for Labour Economics, 2011. Print.
Chin, Anthony, and Hock G. Ng. Economic Management and Transition Towards a Market Economy: An Asian Perspective. Singapore: World Scientific, 1996. Print.
Cropp, Robert A, and Truman F. Graf. Market Adjustments Confronting Wisconsin Fluid Milk Processors. Madison: Research Division, College of Agricultural and Life Sciences, University of Wisconsin, 1972. Print.
Messina, J, C Michelacci, J Turunen, and G Zoega. Labour Market Adjustments in Europe. Cheltenham: Edward Elgar Pub, 2006. Internet resource.
Vettori, Stella. Changing commodity and Labour Markets: Social and Economic Impacts of the Demographic Time Bomb. Farnham: Ashgate, 2010. Print.
The Long March
The Long March started in 1934 October and lasted till 1935 October. It was the most historic six thousand miles journey by the Red Army which was China’s Communist Party. It wasn’t just one Long March rather, a series of marches as Communist armies made an escape to the West and North. Eighty thousand soldiers were part of the walk but roughly, only eight thousand or nine thousand made it through the trek. At the end of the trek a Communist base was established in Yan’an and the March became the focal point of events in the mythology of Chinese revolutionary.
The march that is best known was the one from the province of Jiangxi which commenced in 1934 October. At that time, the First Front Army was close to annihilation by troops belonging to Generalissimo Chiang Kai-shek’s troops all this within their stronghold because the army was led by a military commission that was inexperienced. Under Mao Zedong and Zhou Enlai leadership, the communists managed to escape in a retreat to the north and west. They walked for nine thousand kilometers in three hundred and seventy days. The route used by the communists was the trickiest terrain in west China as they first traveled west then later North finding their way to Shaanxi.
The commencement of the March was after Mao Zedong ascension to power. The leadership of Zadong at the time of retreat helped him gain support from party members. The March was a bitter struggle and one that only one-tenth of the army managed to complete. It represented a significant chapter in history of Communist party and sealed the prestige of Mao as well as his supporters in the decades that followed. However, it is important to note the role of Mao is a disputed one with many claiming his role was not just exaggerated but that certain events were completely fabricated.
After making an escape from the Chiang encirclement, it became obvious to leaders of the party that the intention of Chiang was interception of what still remained of Red Army hence they had to make reconsiderations regarding the route the army should take. They made a rendezvous plan with the aim of joining Hunan’s He Long’s army.
Mao was the one who made the suggestion the Red Army should change direction and head towards Guizhou where he believed defenses of the enemy would be weak. To make the decision on which direction the Red Army should follow, on 12th December, 1934 a meeting was convened at Tongdao which was close to the Guizhou and Hunan border. The proposal made by Mao was endorsed by Zhou thus overruling objections raised by Braun and Bo.
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Facts about the Nile River
There are many resources in the world that have made life smooth and interesting. Rivers are substantial natural resources that present many benefits to human beings. A river is a natural watercourse usually of freshwater flowing towards ocean, lake, a sea or another river. Rivers are part of the hydrological cycle and there are numerous roles used as source of water, for food production, for transport or as a source of hydropower. One of the famous and widely acknowledged rivers is Nile River.
Nile River is the longest river in the world and got its name from the Greek word Neilos- meaning a valley. The Nile River floods into the lands in Egypt and usually leaves behind black sediment and this made the ancient Egyptians name the river Ar to stand for black. The Nile River serves 11 countries and this includes Tanzania, Uganda, Burundi, Democratic Republic of the Congo, Kenya, Ethiopia, Eretria, Sudan and Egypt. Above all, Nile is the core water source for Egypt and Sudan. There are incredible facts about the Nile River that you should be well-versed and they include;
- Many people know Nile is the longest river, but many do not have clues on the actual size. Surprisingly, Nile is 6695 kilometers or 4148 miles long.
- For many people, it is a fact that the Nile winds from Uganda to Ethiopia flowing via a total of nine countries that entail Ethiopia, Zaire, Kenya, Uganda, Tanzania , Rwanda, Burundi, Sudan and Egypt. A navigation team recently revealed more on Nile, by following it from the main source to the final destination.
- The Nile river flows from the high mountain of the eastern part of Africa and middle regions within the northern section of Africa to Nile Delta.
- There are two major branches of the Nile; the White Nile and the Blue Nile. The two branches join at Khartoum.
- The core sources of Nile are Lake Victoria which feeds the White Nile branch and Lake Tana that feeds the Blue Nile.
- The ancient Egyptians used the Nile in many ways. The river helped greatly during the civilization period and helped shape the life and history of the Citizens. The river has helped to produce extremely fertile soils which made it easy for the focused farmers to excel in food production. The waterway also offered fresh drinking water and for irrigation. The river also made it easy grow papyrus reeds making it easy to make papers and quality building materials. The river also served as a great source of transportation.
- You can also find the largest crocodiles in the Nile River. Other animals living in and within the surrounding region close to the river include mongoose, turtles, hippopotamus, tortoise, baboons, frogs, different types of fish and hundred species of birds.
- The Aswan High Dam was built in 1970 to help regulate flooding of the Nile River. The dam has offered immeasurable benefits in controlling floods and drought within the river basin.
Today the Nile River has brought a lot of changes in the regions. Attractive and refined cities like Cairo, situated within the banks of the river are great attraction not only for the African people, but also foreigners from every walk of life. More matchless developments are also taking place in the regions and more is anticipated in the future.
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The Jacobite risings, also called the Jacobite Rebellion took place between 1745 and 1746. In this essay, we discuss the events that led to the rebellion, including the retreat and aftermath. To understand this better, we shall also focus on the kings that were in power during the revolt or those that largely contributed to the uprising. A prominent name in the history of Jacobite Risings is Bonnie Prince Charlie, a grandson of King James, who was dethroned in from British monarch in 1688 by William through a plan by politicians, as he supported.
King James had strong support for Catholicism, a stance that most politicians of his country did not buy. Initially, Parliament proposed that William and Mary to serve in acting capacity until James Francis Stuart attained maturity, a proposal that William from Holland vehemently rejected and threatened to return to his country. Because of the fear of a power vacuum, parliament recognized William and Mary as the monarchs, sowing the seeds of Jacobite Revolutions. Jacobite was coined from the Latin equivalent for James- Jacobus.
The 1745 Jacobite uprisings are famous in the history of Britain. Around that time, Charles sailed to Scotland, even though he had to overcome an array of challenges. Because of the stories he got, Charles was worried about an uprising because of his presence and only sent letters to his father about his plans to travel. On July 23, 1745, he landed at Hebridean Island, with Seven Men of Moidart. There he planted the Prince’s flower, which to-date, is only found in Scotland and nowhere else in the world.
Following Charles’ arrival in Scotland, highland chiefs were not ready to join him, since he did not sail with an army from France. The first chief t join him was Ranald McDonald before others followed. Charles status rose on August 19, when more than 1500 people assembled to hear from him though more chiefs remain reluctant to join him. Tales however about his enthusiasm and charm attracted more chiefs who heard the testimonies. Additionally, Campbells decision to gather consolidate support for government forces also compelled other clans and individuals to join the Jacobite cause.
Having marshaled an army, Prince Charles went across Scotland, reaching Perth in September, where he stayed at the Salutation Hotel. He was joined by Lord George Murray, who later became a lieutenant in the Jacobite Army. While in Perth, the Prince visited Scone, where most of his ancestors had been sworn into office. The Jacobite army entered Edinburg on September 21under Sir John Cope, awaiting reinforcement. Under the command of Lord George Murray, the Jacobites attacked the south by surprise at Prestonpans. Even though the battle lasted for only 15 minutes, Jacobites achieved psychological morale.
Prince Charles crossed the English border with 5500 men and by December 4, they were at Derby, 120 miles from London. Here, they experienced harsh winter weather and faced an attack of 12,000 men of Hanoverian Army, which had the southern support. This forced Charles to retreat. On January 17 1746, Jacobite and Hanoverian armies clashed near Falkirk, with the witty and tactful Lord George Murray leading the Highlanders to inflict causalities on their opponents, forcing them to leaven in confusion. Importantly, Jacobite Army never lost any battle between Glenfinnan to Falkirk.
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The fall of the Soviet Union can be attributed to the Cold War. However, the collapse of Soviet Union was a gradual process that took almost half of the century. In around 1945 when the Second World War ended, the United States and the Soviet Union engaged in a war that entailed fear and threats.
At that time, Cold War was a major concern in the international affairs. From the opponents of communism perspective, the purpose of Cold War was to ensure that communism was contained and that nuclear conflict was avoided. However, Soviet Union was determined to spread communism across the world including in the United States.
Both the United States and the Soviet Union disagreed over economic, cultural and political differences. In the United States, construction of retaliatory weapons started in preparation of the possibility of the need to use weapons. These weapons were known as the Strategic Triad. They included submarines, land based missiles and long-range bombers. This marked the start of nuclear arms race.
The governments of the two sides stockpiled more nuclear weapons to ensure that their governments are in line. Fortunately, nuclear was did not take place. This can be attributed largely to scare tactics embraced in the cold war. However, both the United States and the Soviet Union engaged in space race in the 1950s.
Both the Soviet Union and the United States wanted to beat the other in the space race for various reasons. The major reason was that their military and defense capabilities were to benefit from the establishment of a successful program of the space. The rivalry between the Soviet Union and the United States was every intensifying which fueled the space race further.
However, 4 October 1957 marked a win for the Soviet Union because it launched a satellite Sputnik in the orbit. Nevertheless, the United States became the first country to land successfully on the moon.
Tension between the two sides continued with nuclear arms race and the space race being the major fields of competition. Over the years, crisis related to the cold war emerged including the Vietnam and the Korean wars as well as the Cuban Missile crisis. The economy of the Soviet Union became stagnant due to continued support of arms race.
However, Mikhail Gorbachev became a change advocate when he was appointed as the president of Communist Party. He started working with the United States’ president Ronald Reagan improving the relations between the two countries.
In 1989, the U.S president George W. Bush and Gorbachev declared the end of Cold War which marked the end of Berlin Wall and Communism end in the East Germany. In December 1989, communist governments in Romania, Bulgaria and Czechoslovakia fell and the Soviet Union ended in 1991 when it split into different republics.
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A company may opt to charge varying prices for its identical goods to various market segments. In marketing terms, this is known as price discrimination. However, this business practices is faced with a lot of controversy based on its legality and morality. Some people say that it is an unethical and illegal practice to exercise discrimination among customers through the use of prices while some argue that since the businesses operate in a free market, it is their right to come up with prices in a way that they consider is suitable and fulfils their best interests.
Consumer ignorance is one of the factors that promote price discrimination. Consumers of certain products especially the technical products like medicines are usually not informed of the costs of production of the services and products. Besides, they are also unaware of the prices at which the products are sold to consumers in other parts of the market. Suppliers who are often monopolies take advantage of this ignorance to sell their products at maximum possible prices that can be paid by the consumers who are ignorant of such information.
According to Reinhardt (2013), price discrimination has been the major factor that has enabled many American medical practitioners to make huge profits. He goes ahead to point out that national medical insurers with higher bargaining power like Federal Medicare and national Medicaid programs generally pay lower rates than the cost of medical services while privately owned insurance companies with less bargaining power and privately insured patients with no idea of the medical costs and desperately need treatment are charged higher prices for medical services. Patients who are not insured are particularly charged based on their perceived level of income while those thought to be well off are charged heavily while those thought to be poor are given various discounts to make their bills much less. The main idea behind overcharging patients who are not insured is to cover up for the losses made from charging Medicare and Medical patients prices that are lower than the actual costs of medical services.
Price discrimination is not outlawed and can be legally exercised in a free market whereby the state does not interfere in the setting up of prices. However, the controversy arises when it comes to the determination of the morality, ethical standing and economical viability of the practice. From the viewpoint of business, price discrimination is beneficial to the business since it maximizes the revenues and helps in the recovery of losses made in other areas. Businesses may also reason that the extra income earned from price discrimination is re-invested into the business to enlarge it and create employment towards the benefit of the society.
On the other hand, the consumer has very little to celebrate from price discrimination. If a consumer finds himself or herself on the segment of the market that is overcharged, the surplus income will be obviously drained thereby impacting his or her savings negatively. The criteria used in price discrimination might also be faulty. Those who are considered to be economically stable might not be rich and those considered to be poor might be in a position of paying higher prices. Therefore, the criteria applied might not serve the moral obligation of helping the poor. A company can use price discrimination as a competitive strategy against its competitors. The consumer may enjoy provided that competition is alive but in the event that other companies are defeated and forced to quit the market as a result of discriminative prices, there will be a monopoly which has higher chances of oppressing customers with inflated prices.
Apart from the small fraction of consumers that pay low prices as a result of discriminative pricing, other direct merits of discriminative pricing to consumers are not easy to point out. Even the low prices are challenging for a firm to maintain in the long run since they are hiked soon after. Price discrimination is usually applied to serve the best interest of the business and not necessarily that of the consumer. Thus, as a consumer, I am not supportive of the practice of price discrimination.
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