Managerial Economics Report: Traffic, Demand and Luxury Products

This managerial economics report analyzes various economic concepts and real-world scenarios. It begins by examining resource allocation in a market economy, focusing on strategies to address traffic congestion, including building roads, taxing petrol, and subsidizing public transportation. The report then delves into the principles of demand and supply, explaining their application in the petrol market and the government's role in influencing consumer behavior. Furthermore, it explores the social costs of car usage and the rationale for subsidizing bus travel. The second part of the report focuses on the luxury goods market, discussing the price elasticity of demand, and exceptions to the law of demand, such as Giffen and Veblen goods, with illustrative examples and graphs. The analysis provides insights into how luxury goods behave in the market, particularly when prices change. The report concludes by summarizing key findings and emphasizing the importance of understanding these economic principles in making informed decisions.

Managerial Economics

Question 1........................................................................................................................................1
Introduction..................................................................................................................................1
Main Body...................................................................................................................................1
Conclusion...................................................................................................................................1
Question 2........................................................................................................................................1
Introduction..................................................................................................................................1
Main Body...................................................................................................................................1
Conclusion...................................................................................................................................4
Question 3........................................................................................................................................4
Introduction..................................................................................................................................4
Main Body...................................................................................................................................4
Conclusion...................................................................................................................................7
Question 4........................................................................................................................................7
Introduction..................................................................................................................................7
Main Body...................................................................................................................................7
Conclusion.................................................................................................................................13
REFERENCES..............................................................................................................................14

Question 1
Introduction
Traffic congestion is a problem that faces by the different types of cities. For this require to
use different resources in effective manner like building, road, taxes and many others. There are
defining about the various resources allocation, principle of supply & demand. Moreover define
about the impact of different sources into various manners.
Main Body
(A). Analyse resource allocation in market economy
Market Economy:- The economic system that focus on decision of investment,
production and channel of distribution for taking high risk to manage it effectively with the
motive to generate high return in future. It is essential for organisation to utilise the scarce
resources effectively in order to improve competitive strategies for being stable at competitive
market. The managers further emphasize on price of their production in relation with demand
and supply for analysing consumer equilibrium point.
Allocation of resources:- The resource allocation refers as ability of managers for taking
corrective measures to fully utilise the scarce sources for attaining high profit-margin to improve
growth and stability. The main duty and accountability for every manager is to take selective and
creative decision for increasing sales in order to gain profits. As per the given case, managers
aim to restrict high traffic by increasing the price of petrol that bounds customers to minimise
high usage of vehicles and motorcars.
 Building roads:- The government aims to build roads with double, triple and four lane
construction in order to minimise the traffic and uncertainty of accidents which increase
death rates. It is essential to manage interchange passage for diminishing roadside traffic
accidents.
 Taxing petrol:- The main strategy being adopted by government is to increase the price
of petrol as per the high taxation rate that result in low consumption of personal vehicles
and increase public transportation.
 Subsidizing buses:- The lawful administration further plans to provide subsidies for
public transportation that encourages people to consume or use more of buses, taxis,
autos, etc. It results in diminishing the road traffics with low consumption of private
transport.
(B) Social cost of car
1

When social costs are greater than private costs, therefore externalities to output are
negative. When social costs are smaller than private costs, therefore external costs to output are
favourable. The expense or profit to community from much of an operation. The social costs
comprise both public and private expenses. Negative externalities may provide any pollution-
related costs that may happen as a consequence of my company. The community where my
business is situated could be less pleasant to live in leading to excessive congestion or pollution
from my company. I as the company owner do or don’t pay for such external costs. Public costs
are what we all have to pay for. When I run a company, the costs are associated with the
resources I use, the wages I pay to my staff; the taxation I charge as well as the resources I use to
make my goods should be some of my personal expenses.
(C). Elaborate principles of demand and supply with the effect of tax on market for petrol
Consumer Equilibrium:- The consumer equilibrium refers as process of equalising the
demand and supply. It results in high satisfaction level of end-users for gaining maximisation of
contentment and producers are able to maximise profit-margin at certain point.
Law of Demand:- This refers as inverse relation between price of commodity and
quantity demanded by customers for achieving satisfaction level. It represents that every increase
in rate of merchandise leads customers to minimise the demand.
This adverse relation describes that manufacturers aims to increase the prices for
supplying qualitative products which restricts the desire of customers to purchase more products.
As per the given case, it have been concluded that government aims to maximise taxation
on price of petrol which restrict the high consumption of individual transportation by customers.
They further engage in utilising public transport for gaining subsidies and to save their
expenditure by using buses, cycles, taxis, autos, etc.
Law of Supply:- The Law of supply is described as positive relationship with price of
commodity charged and quantity demanded by customers. It is most important for managers to
supply their products at certain which encourage customers to consume more of its commodities
for gaining high satisfaction level.
The positive relations leads to analyse the understanding and good associations with
manufacturers and customers for identifying the change in demands. It results in supplying
superior products at which buyers are ready to pay high prices for gaining huge pleasure.
As per the given case, it have been concluded that government emphasize customers to
restrict high road transportation through using own vehicles at rare case and adopting high public
2

transportation. It results in restricting high road traffics which increase environment pollutions
and affect the health of public through air fumes.
(d) Bus travel should be subsidised by the government
There are two important points to take into consideration about transportation subsidies: 1)
reimbursing tariffs for riders, especially with fundamental knowledge, is effective; and 2)
subsidized tariffs for different demographics must not be financed by paying more for these
riders. Local officials will ensure an effective and safe transport network by focussing on both
sides of the issue. Transportation payments are likely to reduce by a subsidy – in pictorial
aspects, the supply curve to shift to the correct, decreasing the balance price. This will result in a
rise in prices, as more citizens are being motivated to be using this mode of communication. The
excess supply is the accurately predict of sales and the consequence of replacement. Options to
commuter trains occur to be more affordable at a cheaper price (the affective component) and,
presuming income level set that includes, affordable mass transit results in a growth in actual
earnings (the effect on income). With a significant subsidy, travelers can prefer private transport
convenience-meaning that mass transit PED is relatively elastic. Findings suggest that PED in
the UK is really perfectly inelastic, with short-run elasticity for public transport, round the-) (0.4,
tube travel-) (0.3, and midwestern rail-) (0.6.
Conclusion
As per the above question t has been concluded that to stop traffic problems the government
apply the various types of strategy and take right steps to overcome these problems. For this use
different types of resources and focus on it.
Question 2
Introduction
Luxury products have strong market elasticity of earnings: they can consume more luxury
goods correspondingly as individuals grow richer (Aucoin and Deetlefs, 2018). Nevertheless,
this also implies that if income declines the output would drop more often than correspondingly.
Price elasticity of demand with regard to output is not static, but may change signs at various
income rates. This is to say, at various income rates, a luxury good can become a good
requirement or even a giffin good. This question based on the critical evaluation of one statement
and identifies that, it will contradict the law of demand or not.
3

Main Body
Given statement is true because according to law of demand in exceptional case, when
demand of luxury cars decreases then price also decreases. According to the basic law of
demand, when price of a community increases then it will decline the overall demand and vise
versa. Below mention justification provide better understanding:
In trade, luxury goods are the items on which consumption increases rather than
proportionally as revenues rises, meaning that spending on the commodity is a higher proportion
of total expense. In comparison to need, luxury goods are services where consumption rises
substantially less than income. Luxury goods are also used interchangeably with superior goods.
For example, if income increases by 1 percent, and a product's demand increases by 2 percent,
the commodity becomes a luxury good.
Law of demand: It says that when price of a commodity increases, all requirements
become fixed, and demand for that good decreases. Subsequently, the market for the drug will
rise as the price of good declines (Baruönü Latif, Kaytaz Yiğit and Kirezli, 2018). For example,
if the rate is Rs.50, a customer may purchase two dozen Bananas. When the price rises to Rs.70,
however, now the same buyer will limit the buying to a dozen. Therefore, in this case, the
demand for the bananas was decreased with one dozen. The law of demand consequently
describes an opposite relationship between the variables of price and quantity of the commodity.
The market remains fluctuating till a equilibrium is struck. There are also several exceptions in
the law of demand. These include the Giffen goods, Veblen goods etc. all are discussed below:
Exceptional case:
Giffen goods: It is a term the Sir Robert Giffen invented. Such goods are products
comparable to expensive goods. The peculiar feature of Giffen products, though, is that demand
increases when price falls. This attribute is just what allows it the exception to the demand rule.
The Irish Potato Famine provides a prime example of the idea of Giffen products. Potato is an
important staple of the Irish lifestyle. Because when price of potatoes continued to increase
during the potato famine, people have spent less on luxury foods like meat and purchased more
veggies to stick to everyone’s diet. When the price of potatoes increases in the market, it reflects
a complete opposite because of demand law. Below mention goods provide better understating
which are as follow:
4

Figure 1 Giffen goods, 2020.
Above graph represent that relationship of Giffen goods with price which is totally
opposite with each other. It clearly mentioned that, when price of commodity decreases from 60
to 40 then demanded quantity increase from 400 to 800. Basically demand increases from A
point to B on demand curve.
Veblen goods: Another exception of demand law is the Veblen Goods which is a term
named after the philosopher Thorstein Veblen, who pioneered the "conspicuous usage" principle.
There are some items which are more expensive as their price rises, according to Veblen (García-
Enríquez and Echevarría, 2018). When a commodity is costly then it’s worth and usefulness is
considered to be greater, thereby increasing the market for that drug. So this also occurs for
valuable stones so gems like gold and diamonds, and expensive vehicles like Rolls-Royce, for
example. The price of such items rises, so demand of such commodities becomes a symbol of
status for the person. Given statement of this question is the part of this exceptional demand low
where decline in demand of luxury cars also reduces the price of luxury cars in the market.
Below mention graph provide better understanding of luxury items.
5

Figure 2 Veblen goods, 2019.
Above demand curve represent relationship of price and quantity of Veblen or luxury
goods. It is one of the exceptional case of law of demand where both variables has positive
relationship which means when price increase, then demanded quantity also increases. On the
other side, when price reduces demand also reduces. Gold, diamonds, luxury cars etc. are the
example of Veblen goods. When price of luxury items increases from P1 to P2 then demanded
quantity also increases from X1 to X2. Both have positive relationship which leads the demand
curve in upward direction.
A few other luxury goods are being attempted to claim to also be forms of Veblen goods,
with such a favourable price elasticity of demand for instance, making a fragrance more
expensive may boost its monetary value as a luxury good to such a large extend that sales may
go upwards. This is important to bear in mind, though, that perhaps the Veblen goods weren't in
fact the same as luxury goods (Skott, 2019). Most businesses have a luxury category, like
premium models of cars, sailboats, champagne, mineral water, coffee , tea, snacks, watches,
apparel, jewellery, and high quality sound equipment etc. While the technical name luxury good
is separate from the cost of the products, in terms of price and quality they are commonly
regarded to be items at the top end of the market. Classic luxury products include high fashion
shoes, bags, cars and accessories.
Overall analysis help the individual to understand that given statement regarding luxury
goods is absolutely right. In case of luxury items, when demand of luxury cars decreases then
price of that particular item also reduces.
6

Conclusion
From the above discussion it has been observed that law of demand very essential concept
which help the organizations to understand the market condition. In this law, there are several
expunctions and Veblen goods in one of them which included luxury items and when its price
increases, demand automatically increases because purchase of these items becomes status
symbol.
Question 3
Introduction
Flexible exchange-rate structure is a monetary platform which allows market forces such
as demand and supply to decide the exchange rate. Each currency area has to determine the type
of exchange-rate agreement to keep (Buffie, Airaudo and Zanna, 2018). This question is
discussed about that why large countries openly adopted this flexible exchange rate rather than
small nation.
Main Body
Under a competitive exchange rate regime, a big nation like the US, UK, Japan etc. are free
to follow an independent strategy for proper conducting domestic economic relations. A
country's financial policy isn't constrained or influenced by other countries’ economies
conditions. This defends the local market from the disruptions brought on by instability in other
nations. Therefore it serves as a safety device and protects the domestic economy from external
disrupting impacts. The exchange rates may be adjusted in compliance with the nation's
monetary policy criteria for achieving the national goals expected.
Throughout the early 1970s, the United States moved to a flexible exchange-rate structure
to compensate for the regular fluctuations in currency prices triggered by the changing economic
policy, inflation and interest rates in foreign nations. Flexible exchange rates amongst these
major country’s currencies of industries are likely to stay a key pillar of the economy. The arrival
of the euro currency in January 1999 initiated a significant step in the development of the
economy, but the European Central Bank has a strong mandate to base monetary policy not on
the exchange rate but on the internal goal of market stabilization (Ebeke and Fouejieu, 2018). In
an atmosphere of rising capital market convergence, many small developed countries and
emerging and transitioning economies will still tend to retain market-determined variable levels,
7

whereas more countries will be able to follow tougher paddles in the medium to long term. In
existing conditions, there have been two fundamental obstacles to any plan that will seek to
achieve significant fixation of the euro, yen and dollar exchange rates:
Firstly, it will entail essentially able to devote monetary policy to exchange-rate
stabilization conditions, which are likely to clash with domestic goals, including the goal of fair
market stability. Indeed, a reality those exchange-rate fluctuations even amongst the major
currencies have, on several occasions, expressed differences in cyclical roles between the state
involved and in monetary proposed policies required to maintain economic stability and sustain
development suggests that this apprehension is justified.
Secondly, the 3 primary currency areas did not follow normal optimal currency region
requirements. The past several years have demonstrated their source of financial activity
coordination and that there is no reason to suggest gaps between them and it will not continue to
exist in the future. In the lack of the sort of international determination that followed the
adoption of the euro, any effort to reform the triplet's currency values could be deficient in
legitimacy and the economy could easily overturned.
Small countries are not open as large countries to adopt flexible exchange rate because
elasticity of exchange rate in international market is very low which affect the economic
condition of small nations. When the elasticity for import and export are very low, the foreign
exchange has become unpredictable. Hence, low currency depreciation will actually appear more
to exacerbate the balance - of - payments gap. Due to unstable condition of small nations also not
allow to adopt flexible exchange rate. This would lead to a decline in the amount of international
exchange and investment. Lengthy-term foreign investments are dramatically decreased due to
increased associated risks.
The flexible exchange rate mechanism has a significant negative consequence on the small
country's economic structural. Fluctuating exchange rates trigger price changes for imported and
exported products which, in effect, destabilize the country's economy. It contributes to excessive
movements of financial money (Santana-Gallego and Pérez-Rodríguez, 2019). Through
promoting economic investment such a scheme triggers large-scale outflows and inflows of
money, thereby significantly disrupting the country's economy, so developed countries can suffer
but small nations can't, due to this reasons developing countries are not open to adopt flexible
exchange rate. Speculative transfers of capital caused by fluctuating exchange rates which lead to
8

an exceedingly high money supply issue. In a condition of high liquidity demand, people
continue to stockpile money, rising interest rates, declining consumption and the economy is
facing large-scale poverty or unemployment.
Flexible exchange-rate entails greater probability of currency-depreciation inflationary
impact on a country's internal price index. Inflationary price increases cause the currency's
intrinsic value to depreciate further. The open exchange-rate mechanism does not allow for
export regulation and encourages free trade. External trading barriers are abolished, and there is
unrestricted flow of capital and resources between countries. It will be beneficial for large
countries in comparison to small countries.
Nations with fixed exchange rates lose Monetary Policy power. This increases
vulnerability to financial disruptions elsewhere in the world, which can result in more regular
which aggressive institutional investor’s attacks. Countries with fixed exchanges would
effectively follow their currencies sponsor's monetary and fiscal policy. There had been a period-
nearly 40 years ago-that virtually all currency were set to the barter system. Throughout the
1970s, the Bretton Woods system dissolved as countries found it extremely impossible to sustain
the tight financial stability required to keep their currency stable in the middle of a rising in
global oil prices.
Efforts since the nations have typically struggled to return to fixed currencies (Wu and Wu,
2018). The most dramatic defeats include Argentina, Mexico, Greece and Thailand. Smaller
countries tie the economies to larger ones; it has also caused some problems. Research have
already shown that smaller nations with fixed currencies are suffering from higher inequality,
reduced income and, inevitably, wealth loss. That's what changed when Greece, Germany and
Ireland left the euro region. Although interest rates shook up after the financial collapse, by
reducing incomes, some countries could not easily adapt to rising interest rates. Through
devaluing, countries will easily adapt to any outside disruptions with a flexible exchange rate.
Conclusion
On the basis of above discussion it has been observed that large organizations have
capability or resources to adopt flexible exchange rate in comparison to small nations. Large
country’s currencies are economically stable which can bear the market fluctuations but small
countries not because they have unstable economic condition that did not allow them to survive
for longer period.
9

Question 4
Introduction
This section of report covers the several topics which are related to market and helps the
organization to consider such things before making any decisions such as demand and supply,
price elasticity, monopoly, oligopoly and marginal cost (Moon, 2018).
Main Body
Demand and Supply:
Demand: Law of demand describes the actions of customer preference as the price of
commodity changes. On the market, when certain variables influencing demand are stable, it
contributes to a decrease in demand for the good as the price of good increases. This is the
normal action of customer preference (Zhu and et.al., 2018). It is because, only with risk of
running out of cash, a customer hesitates to invest too much for the good.
Figure 3 Demand Curve, 2019.
The following diagram represents the demand curve that slopes downward. Clearly, as the
product price rises from p3 to p2 the demanded quantity decreases from Q3 to Q2 and then Q3
and vise - versa.
Supply: It is a basic economic term, defining the overall quantity of a product or service
provided to people. Supply will be the quantity available at a single price or the relevant parts at
10

a variety of prices as seen on below mention graph. On the other words, when price iof
communality increases then demanded quantity also increases and vice versa. In context of
supply, price and quantity has positive relations because when one increases then another one
also increases.
Figure 4 Supply Curve, 2020.
From the above graph it has been observed that when price of commodity increases from
P to P1 then supply of products also increases from Q to Q1 and vise – versa. S represents the
supply curve which moves in upwards direction.
Price elasticity:
Economic experts use price elasticity to explain how supply or demand adjusts and
understand the complexities of the economic market, despite price changes. For example, a few
other commodities are very inelastic where prices don't change an even given changes in the
demand or supply (Hayes, 2019). For example customers need to buy gasoline to really get to
work or travel around the country, and if oil prices rise then people still buy the same amount of
oil or gas. On the other hand, specific commodities are quite elastic, causing significant changes
in their demand or supply due to their price fluctuations. Price elasticity is a indicator of how
buyers are responding to commodity and service costs. As prices escalate, demand usually
11

decreases, but specific product or service and the environment, how consumers respond to a
price increase can vary. There are two types of price elasticity which are as follow:
 Price elasticity of demand: This is also recognized as PED or Ed, which is a metric of
statistics to demonstrate how demand reacts to a good or service price increase.
Price Elasticity of Demand = % Change in Quantity Demanded / % Change in Price
 Price elasticity of supply: It's also known PES or Es, is a metric that indicates how a rise
in the quality of a product or service influences the amount of supply.
Price elasticity of supply = % change in quantity supplied / % change in price
Figure 5 Price Elasticity, 2018.
From the above graph, it has been analysed that demand for Goods A and B in this picture
varies to a larger degree than demand increases. Products D, E , and F have lower differences in
demand than price shifts. The demand and prices adjust in the very same proportion of
commodity C. Product A is a nonessential commodity such as a spa in weekend, product F is an
important commodity such as dairy products or bread and product C may be a coke when people
would shift to Pepsi if demand rose for Coke.
Marginal cost:
Marginal costs are those costs of generating one additional product or servicing another
client increasing or reducing it and often called incremental expense (Durand and Milberg,
2020). The marginal costs are dependent on adjustable or direct manufacturing expenditures such
as wages, supplies and machinery and the business does not have fixed costs whether or not it
12

raises revenue. Fixed costs may include operational overheads and promotion activities,
expenditures which are the same irrespective of how many parts are made.
This is also determined until ample goods are being generated to offset fixed costs, when
manufacturing is at a break-even stage, where only marginal or direct losses are sustained. If
fixed prices are stable, as compared to conditions in which commodity costs fluctuate due to
problems of shortages, marginal costs are typically the same as total costs.
Formula:
Margin Cost = Change in Total Cost / Change in Quantity
Example: If a corporation will manufacture 200 units at a combined cost of $2,000 and
manufacture 201 costs $2,020, the average variable cost is $10 as well as the 201st unit's
marginal cost is $20.00.
Marginal Cost = 20 / 1
= 20
Marginal costing may be a valuable instrument for evaluating other forms of decisions.
Through automating any feature it is helpful to evaluate how much a organization stands to win
or lose. The primary factors to remember are the additional payroll factors of all workers that are
fired and the new expenses accrued by the acquisition of the equipment and associated repairs.
Monopoly:
Single seller defined a monopoly market structure which offering a specific commodity on
the market. The retailer faces no rivalry in a monopoly market, as they are only retailer of
commodities with no near alternative (Eichner, 2019). In a market for monopolies, factors such
as special permit, property control, trademark and copyright and relatively high costs make an
individual a sole seller of products. Many of such factors limit other sellers from entering the
market. Monopolies also provide some details which other sellers don't care about.
Characteristics related to a dominant market make both the sales owner and the demand
generator the same seller. They take advantage of the ability to set the demand for his products.
Below mentioned graph provide better understanding:
13

Figure 6 Monopoly, 2020
In the above graph individual find the size, production, and income of a monopoly by
looking at curves of competition, marginal expense, and marginal revenue. Again, the business
must therefore place production at a point at which the marginal cost is equal to marginal
income, thereby determining the amount where all these two lines interact. Nonetheless, when
the amount is made, price is dictated by the market for the good. As the marginal income of a
monopoly has always been underneath the demand curve, the market will still be at equilibrium
just above marginal expense, producing an economic benefit for the company.
Oligopoly:
Oligopoly is a competitive market structure with a limited number of businesses, neither
of which will withhold substantial control from the others. The intensity figure tests the larger
firms ' market share. A monopoly is one or two firms are duopoly and two or more companies
are oligopoly. There really is no definite increment in the number of companies in an oligopoly
however the proportion must be so small that one firm's acts have a major impact over the other.
Historically, oligopolies comprise steel mills, mining corporations, railroads, tire production,
supermarket stores and telecommunications carriers (Oliveira and Costa, 2018). The legal and
economic problem would be that an oligopoly is capable of stopping potential competitors,
restricting growth, and that costs that damage customers. Industries negotiate rates under an
14

oligopoly, whether together in a consortium or under the control of one corporation, rather than
take products off the market. Consequently, profitability is greater than they should be in a more
dynamic environment.
It is said that business operating under oligopoly environments are interconnected, which
indicates that they might not act independently. A business competing in a market with only a
few rivals has to take into consideration the possible response of its nearest rivals in
implementing its own choices. In the case of chemical retailing, a retailer such as Texaco may
want to raise its share of the market by cutting price, but it should take into consideration the risk
of shutting competitors such as BP and Shell, which may also drop their demand in response.
Conclusion
From the overall discussion it has been observed that demand and supply is very essential
concept which required understanding before making any strategy and analysis of different
market structure is also beneficial before thinking to enter into new business.
15

REFERENCES
Books & Journals
Aucoin, C. and Deetlefs, S., 2018. Tackling supply and demand in the rhino horn trade.
Baruönü Latif, Ö., Kaytaz Yiğit, M. and Kirezli, Ö., 2018. A review of counterfeiting research
on demand side: Analyzing prior progress and identifying future directions. The Journal
of World Intellectual Property, 21(5-6), pp.458-480.
García-Enríquez, J. and Echevarría, C. A., 2018. Demand for culture in Spain and the 2012 VAT
rise. Journal of Cultural Economics, 42(3), pp.469-506.
Skott, P., 2019. Autonomous demand, Harrodian instability and the supply
side. Metroeconomica, 70(2), pp.233-246.
Buffie, E. F., Airaudo, M. and Zanna, F., 2018. Inflation targeting and exchange rate
management in less developed countries. Journal of International Money and Finance, 81,
pp.159-184.
Ebeke, C. and Fouejieu, A., 2018. Inflation targeting and exchange rate regimes in emerging
markets. The BE Journal of Macroeconomics, 18(2).
Santana-Gallego, M. and Pérez-Rodríguez, J. V., 2019. International trade, exchange rate
regimes, and financial crises. The North American Journal of Economics and
Finance, 47, pp.85-95.
Wu, J. W. and Wu, J. L., 2018. Does a flexible exchange rate regime increase inflation
persistence?. Journal of International Money and Finance, 86, pp.244-263.
Moon, M. A., 2018. Demand and supply integration: The key to world-class demand forecasting.
Walter de Gruyter GmbH & Co KG.
Zhu and et.al., 2018. A meta-analysis on the price elasticity and income elasticity of residential
electricity demand. Journal of Cleaner Production, 201, pp.169-177.
Hayes, A. S., 2019. Bitcoin price and its marginal cost of production: support for a fundamental
value. Applied Economics Letters, 26(7), pp.554-560.
Durand, C. and Milberg, W., 2020. Intellectual monopoly in global value chains. Review of
International Political Economy, 27(2), pp.404-429.
Eichner, A. S., 2019. The Emergence of Oligopoly: Sugar refining as a case study. JHU Press.
Oliveira, F. S. and Costa, M. L., 2018. Capacity expansion under uncertainty in an oligopoly
using indirect reinforcement-learning. European Journal of Operational Research, 267(3),
pp.1039-1050.
Online
Monopoly. 2020. [Online]. Available Through:
< https://courses.lumenlearning.com/boundless-economics/chapter/monopoly-
production-and-pricing-decisions-and-profit-outcome/#:~:text=A%20monopoly%2C
%20unlike%20a%20perfectly,cost%2C%20and%20marginal%20revenue%20curves. >
Law of Demand. 2020. {Online}. Available through
<https://economictimes.indiatimes.com/definition/law-of-demand>
Law of Supply. 2020. {Online}. Available through
<https://economictimes.indiatimes.com/l/law-of-supply/articleshow/19490969.cms?
from=mdr>
16

17