Econ Free Essays

Two main vulnerabilities of the diamond industry: price of diamond linked to supply and value diamond linked to belief that they are rare and therefore special, and thus suitable token of sentiment. Dabbers exercised monopoly power by effectively controlling production and distribution of diamonds, thus controlling supply and ability to control pricing. When the market started to shift as other sources of diamonds were discovered, Dabbers still held an advantaged position as they had sole control of the distributors, which gave them the power and Influence to broker a deal with these emerging suppliers. We will write a custom essay sample on Econ or any similar topic only for you Order Now This combined with a large and successful marketing campaign Increased sentimental value and perception of scarcity, which Increased consumer’s willingness to pay the prices, set by the cartel. The perception of scarcity ultimately made demand Inelastic, and allowed for Dabbers to set an optimal linear price. While price discrimination is often seen as the best way to increase consumer surplus and minimize dead weight loss, in Dabbers case, as is the case with many luxury goods, its high price signals its value to the consumer, and the consumer can then signal their status to others when the wear he product. The difficulty of diamond mining lent itself to a spirit of cooperation out of necessity. It is not an undertaking that could be done successfully on a small scale, and it was impossible to know for certain which land claim was â€Å"lucky’ and would produce a good output. This, in addition to problematic mining conditions over time, lead to the cooperative partnerships between the miners. This laid the groundwork for the formation of the Dabbers cartel. The idea of collusion between the suppliers to form a monopoly was perceived as a rare opportunity to exercise market control over apply and price. A better resolution for the dispute with the Israeli dealers might have been to attempt to address the issue influencing their actions (worries about financial security during an economic depression) by offering support O. E. Stock options) rather than pointed threats, they could have avoided the damage done to the diamond market, as well as relations with other members of the cartel. While the actions they took did showcase the cartels authority, and signal to those In the cartel that defection would not be tolerated, It also exposed the fallibility of the cartel, and ultimately signaled the beginning of the end the diamond monopoly. The Soviets had the leverage to take down the cartel In Its entirety, as they provided the largest supply of the highest quality diamonds, and had the means to produce and distribute at a competitive price. When the cold war ended and the state no longer held sole control of the Soviet diamond industry, as well as a Canada monopoly had passed for the cartel. No longer able to control the market, Dabbers reorganized itself into an efficient and highly competitive vertically integrated model. How to cite Econ, Papers Econ Free Essays In order the units are: 1. Analyzing and measuring the size of the economy. 2. We will write a custom essay sample on Econ or any similar topic only for you Order Now Explaining, measuring and analyzing how prices and inflation are determined in the long-run. 3. Explaining the determination and measurement of unemployment in the long-run. 4. Analyzing and interpreting the role of financial markets (including exchange rates) in the economy. 5. Analyzing the business cycle and recommending appropriate fiscal and monetary policy. Course Description: This course will consist of on-line lectures and hands-on activities. All of the work to be handed in will take lace through Papilla. You will need to complete the readings and you need to complete them before lecture. Studies show that reading before lecture improves exam performance, on average, by 22%. This is a free lunch: you have to do the reading sometime, so by doing it earlier rather than later you will boost your grade without any extra work! Textbook: Principles of Economics for GUCCI, by N. Gregory Manama. Coinage Learning. The Economics department has negotiated a custom bundle of the textbook, along with an Papilla, subscription for $87. 50. The Papilla obstruction includes access to the digital edition of the textbook. This is the least costly option. You should purchase a copy ahead of time, or have the bookstore ship the textbook to you (be sure to allow plenty of shipping time). Alternatively, you can purchase a stand alone access to Papilla (which includes the e-book version of the textbook) for $134 for one quarter of access and $149 for two quarters of access. The course web page will provide detailed instructions on how to access the course Papilla site. You need to have access to Papilla by the start of the course. If you don’t purchase a copy from the bookstore you will have to purchase the more expensive stand alone access to Papilla. Communication in an Online Class Almost all communication will take place through the forums on the class website. There is a forum set up for general questions. You will also be assigned a TA. Questions that are not appropriate for the general forum should be directed first to the TA. If it is a question that can only be answered by the professor, then the TA will forward your message along. Office hours are by appointment. There are many dents enrolled in this course, so it may take 1-2 business days to receive a reply. The class is located at http://summer. Learn. Gucci. Du. The GAP is a set of voluntary multiple choice questions (90 in total each week with a Sunday at 1 1 :45 p. M. Deadline) that you can work through in Papilla to earn up to 450 points that are added to your total points used to compute your letter grade. There is no penalty for not participating: every question that you answer correctly will earn you an additional point. The GAP questions are open-book. Therefore, with the GAP oh can insure yourself against a lower than expected grade on the midterm and final exam by completing additional work. The GAP is a great opportunity to earn the letter grade that you hope to achieve! Example of GAP: To see how the GAP might work for you consider the following hypothetical scenario. A student received 630 Assignment points (90%), 400 Midterm points (80%), 700 Final points (70%) and 280 Participation points (93%). Without doing any of the GAP work, this student would receive a total score of 2010 (80%) which would translate to a letter grade of B. Now suppose that this student correctly answered 50 GAP questions each week in Papilla. Then the GAP would increase the total score by 250 points, bringing the total to 2260 or a letter grade of A-. The GAP program allows you to put in as much work as you want, through studying hard for the exams or working through the GAP assignments, to earn the grade you deserve. Page 2 of 5 A Remark on Academic Honesty: It is the university policy that academic dishonesty is unacceptable and will not be tolerated at the University of California, Irvine. Here is hat I expect: ; All exams are closed note/closed book exams. With the exception of assignments, you may not receive or elicit assistance from another person or student. ; I define cheating as using the aid of notes, books, other students, or any programs in a calculator. Code of Conduct All participants in the course are bound by the University of California Code of Conduct, found at http://www. Cop. Du/chophouse/accorder/subspecies/ass/ chuck. HTML. Students with Disabilities: If you need support or assistance because of a d isability, you may be eligible for accommodations or services through the Disability Services Center at US Irvine. For more information, contact this office at (949) 824-7494 (voice), (949) 824-6272 (TTY), at www. Disability. Gucci. Du or stop by the center at Building 313 on the US Irvine map. A Remark about Electronic Communications: This course has a number of â€Å"social media† outlets to increase interaction. I may choose to not answer some of your questions. Some questions may require you to see me in person. Since all communication in this course will be written it is important to be aware of the advantages and disadvantages of on-line communication. The advantages are that you have more opportunity for careful and thoughtful expression. The disadvantages are that it misses more subtle communication cues such as body language and tone. Please be aware that there is always the possibility of miscommunication and compose your comments in a positive, supportive and constructive manner. Course Schedule (tentative): Date 7/28 Issue Introduction to Class Course Orientation Become familiar with the course website and Papilla. Measuring and analyzing the size of the economy (caps. 23- 25) 2 8/04 3 8/11 How to cite Econ, Papers