Economics Essay Example | Topics and Well Written Essays - 1500 words - 24

Economics - Essay Example This capital expenditure takes time which cannot be completed in the short-run. Similarly, no existing firm can leave the industry in the short-run. The reason behind this is that whenever a firm sets up in any industry it has to incur some sunk costs. In lay man terms, sunk costs are actually setup costs. These costs are barriers that do not let the firms leave the industry in the short-run as no firm wants to leave the industry without minimizing or cashing in on some of their sunk costs. As we have already discussed, that no firm can be lured into or pushed-out of the industry in the short-run. The reasons that may tempt the other businesses entering into industry are off course profits, as discussed above. There are two types of profit that firm makes in the short run based on its costs and revenue. A firm may be making large profits or break-even in this time-scale. In economic terms break-even is known as normal profit because the calculation includes implicit or opportunity co sts, which are not actual cost and hence a firm which is breaking even is making a profit in accounting terms. Normal Profits are usually denoted by AR=AC. Similarly, apart from normal profit a firm might also be making a Supernormal profit denoted by a equation AR>AC. These profits positions can be shown in the following diagrams: In figure 1 we see the condition in which the firm is making a level of profit that is just enough to persuade the firms to stay in the industry in the short-run but not enough to attract new firms. In short-run when the firm is earning normal profits, the firm is just covering total costs. Since the TC (Total Cost Calculations) also includes implicit costs like opportunity cost of capital employed, return of capital in alternative uses etc. These are not actual costs and hence breaking even would mean that firm is earning profit which it could earning in alternative businesses and hence

ENG 105 Essay Example | Topics and Well Written Essays - 500 words

ENG 105 - Essay Example "Poor governance is a major issue in many African countries, and one that has serious repercussions for long-term food security," says a statement by the International Food Policy Research Institute.† (Africa’s Hunger) It is very disheartening to see the authorities playing this blame game, we have been blaming each other for something devastating but it is time to stop this and work in unison to help these underprivileged people. There is increased awareness these days thanks to sources like Facebook, Youtube, Twitter and so on. There are several videos on Youtube showing the fate of young children and adults, who succumb to hunger, this is an ongoing fight to restore parity. â€Å"Every year 15 million children die of hunger.† (The World Hunger Problem) The opulent have enough food to feed their pets and shower their unconditional love on these pets but they often refrain from helping people who need their help the most. Children in Africa can only be saved when the world realizes their problem and unites to solve this long standing problem. Numerous lives have already been lost and many more will succumb to the same in the near future should nothing be done about it. â€Å"Throughout the 1990s more than 100 million children will die from illness and starvation. Those 100 million deaths could be prevented for the price of ten Stealth bombers, or what the world spends on its military in two days!† (The World Hunger Problem) New weapons to destroy each other are being designed by shelling out a fortune almost each day but the people become insensitive when they hear about the suffering of other people. Even young children fail to get the attention when they need it the most. This is very disturbing both emotionally and physically. â€Å"Children are the most visible victims of under nutrition.   Children who are poorly nourished suffer up to 160 days of illness each year. Poor nutrition plays a role in at least