Economic Analysis: Market Efficiency, Growth, and Trade-offs

This assignment delves into various economic concepts, starting with an examination of product differentiation across industries like steel, novels, wheat, fast food, mobile phones, and hairdressers, emphasizing that even seemingly identical products have unique characteristics. It then discusses the factors influencing consumer choices, highlighting the rationality in decision-making and the advantages of market competition. The assignment further defines market efficiency, emphasizing the balance between companies and consumers, and the benefits of competitive pricing and improved product quality. It contrasts classical, neoclassical, and endogenous growth models, explaining how each model views the drivers of economic growth. Finally, it provides examples of trade-offs in different scenarios, such as a family buying a car, government investment in infrastructure, corporate acquisitions, and teacher project planning. Desklib provides access to similar solved assignments and past papers to aid student learning.

Question 1
Steel: Tata Steel, British Steel, Celsa Steel, Liberty Special Steels and Outokumpu.
Novels: Wiley, Entrepreneur Press, Allworth Press, Career Pres and McGraw Hill Professional.
Wheat: Grocer, Marks and Spencer, Tesco, Sainsbury and Wallmart.
Fast food: Domino's, Nando's, McDonald's, KFC and Papa John.
Mibile Phones: Samsung, Apple, Nokia, LG and Motorola.
Hair dressers: Rush, Guinot, Healthy Feet, Toni & Guy and Lash Perfect Beauty Bar.
The above sttated are the different examples of all the categories or product range
associated with all different sectors. The concept of economics demoted the fact that the product
offer by different firms in the same industry is completely indistinguishable. The basic
characteristics of this is the fact that products offer by all different companies and business
venture are different fro each other at a some level. In context to the overall quality of the
respective product there are only few aspects that modified but in an overall context there is not
any fundamental change. This is completely unavoidable to provide a different quality of the
same product. The role of the companies is to manufacture the respective product but the overall
quality remain the same of all product line. The basic nature of every product segment is same
that always required to involve by the respective entity. This is essential where it comes to
segregating the product line from other respective brand there is not much difference that can be
spotted in respect to the different companies offer the same product. The role of the organisation
is only limited to providing the same product line but this is completely challenging to ensure a
different treatment in the same product line. Customers get the same product with different brand
name but in context to the product there is not any fundamental change which is reported. The
concepts of economies clearly demonstrate the fact that all the different organisations are
strategically involved in offering the supply of different products. The key characteristics of all
products offer by different brands is remain the same.
Question 2
The consumption choices of the human behaviour is attached with various elements.
There are many elements and factors which influence the human behaviour in process of
pursuing the products or approaching the product choices. When it comes to approach the
choices human being always take rational decisions. The competition in the market also
influence the human being and the potential customers to identify the different options that is

available with the human being whole making the consumption decisions. Being rational when it
comes to take the consumption decisions is a key strength and part of the decision-making
process of the human being.
Business environment is full of competitive forces that also offer the advantage of trade
off between different organisation. Today the business environment has become volatile enough
which allow the environment to face the aggressive level of market competition that provide the
opportunity to the customers for taking the advantage of cost friendly products. The trade of
between different organisation allow the customers to take an advantage of discounts which
favour the potential customers in getting attractive deals over different product option available
in the market. This is a key advantage of the trade off that prices are getting more affordable for
the target customers. Along with the quality also get improved when it comes to businesses face
trade off. This also lead to improved quality of products and services in the market.
Question 3
Market efficiency is defined the ability of the market to offer a certain products and also
at the same time this is about to make available all different brand sin the potential market.
Market efficiency is further defined as ensuring different companies and products to offer in the
respective target market. The efficiency of the market is strategically defined with the number of
business rivalries associated with the respective target market along with the total number of
potential customers available in the market. This is important for the market efficiency that
proper scope is governed by both companies and the potential customers.
In the economic term market efficiency is significantly denoted with the level of choices
available in the market for both companies and customers in the market. This is an important part
of the market where the proper options are available with the customers in the market and also
the companies get a complete scope of meeting up business objectives by making a proper sale
of the products they offer. The nature of the market is very competitive in both the context for
the business houses along with the potential customers in the market. In case of the efficiency
market customer get the complete advantage of all the different aspects of market. The key
advantage customer get is in form of prices. The price become more affordable for the customers
as there is not any monopoly exist ion the market. Along with this customer get the advantage
inn form of product quality. This is also improved in nature for the customers in market.

Effective market also offer multiple options and choices for company is operating its
business under the respective market. Due to availability of multiple stakeholder options and
suppliers the business houses get to minimise the waste and improve the operational
effectiveness of the business houses. This is one of the key advantage of the effective market that
the losses get to incurred minimum. This can be fundamentally directed that effective market
place become one of the crucial part or segment of market that offer the best level of resource
availability along with most advanced feasibility in the market.
Question 4
Classical growth model
This is a classical model of economic growth. This model of growth give emphasis over
the availability of resources and containing a balance for utilizing the respective resources in the
market. The model of economic growth state the fact that economic growth is fundamentally
based on the level of resources available and utilised by the stakeholders. This is about to control
over the population so that all resources available with the country can best be utilised by the
stakeholders. This model provides a right opportunity to ensure a proper use of resources in order
to ensure the best level of economic growth.
Neo classical growth model
This model of economic growth direct the fact that overall growth of the economy is
associated with three different factors such as labour, capital and technology. In respect to the
government and other such stakeholders economic growth is fundamentally associated with the
best use of all these factors and forces. This is a part of the model that in case government aim to
address the best form of economic growth it has to direct all its resources and sources in the best
way so that best and optimum use of the capital, labour and technology can drive in the country.
Endogenous Growth model
This model of economic growth direct the key fact that the external factors are the drivers
of the overall economic growth in country. This model of economic growth direct the fact that all
external factors such as technology, political, economic, social, environment and legal factors are
the key drivers of the overall economic growth in the country.
All the above stated models direct and guide the government to utilises its resources in
the best way possible to ensure the best form of economic growth in country. This is a part of the

economic growth that government make strong decisions so that all resources can best be utilized
by the government.
Question 5
(a) In case of buying a car by family the trade off is face in form of what brand should be
approached. Also the discussion is made over the feature of the car. The discussion or the trade
off is also over the buying of the new car or the old one. This is a key debate that always arises
every time family buy any of the car. This is always a part of the trade off in the family.
(b) Decision of government to establishes a high speed rail link in the northern part,. The rail link
project require huge cost and value that require strong financial resources of the government.
This contain a trade off where government need to make the decision along with justifying the
entire decision.
(c)Every time the chief executive decide whether to acquire a smaller firm. This contains a trade
off between the designates and the stakeholder group associated with the company. This require
investment which are always risky.
(d) Every time the teacher need to decide how much time is devoted on the project. This requires
a trade off between the teacher and other faculty members. This also create a trade off between
the teacher and students.