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Zerge Zandueta
20 years old and counting, this dude loves sports and videogames. he hopes to contribute something good to society one day and make other people happy
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"In the long run we are all dead." - John Maynard Keynes
Learning Corner
Eco Lesson of The Week : Determinants of Supply and Demand
The intersection of the supply (upward sloping) and demand (downward sloping) curves is called the equilibrium pt. This point represents the price at which goods are sold and purchased at the market. However,
this equilibrium point may change depending on a shift by the curves. The curves may shift one at a time or at the same time both either upwards or downwards. An upward
shift by either curve would raise the price, while a downward shift would lower it.
What we want to know this week is what causes these shifts in supply and demand, called their determinants.
The Determinants of Supply
1. Costs of production
2. Profitability of alternate goods in supply
3. Natural occurences
4. Expectations of future prices
5. Profitability of goods in joint supply
6. The number of sellers
The Determinants of Demand
1. Tastes, fashions, preferences
2. The number and price of related goods
3. Income
4. Expectation of future prices
5. Population
By: Clay Bennet (The Christian Science Monitor, Boston)
By: Thomas Boldt (The Calgary Sun, Alberta, Canada)
Friday, October 12, 2007
That iPod...
That iPod... By Bea Lim
When Apple launched the first generation iPod back on October 2001, it marked the dawning of a new era in the portable music player industry. The Walkmans and the portable CD players that were once the dominant players in the market were almost instantaneously relegated to the sidelines. With the iPod’s initial storage capacity pegged at 5GB and 10GB models when first launched, the portable 700MB CD players miserably failed in comparison in terms of storage capacity and portability. Sony’s Walkman and Walkman-inspired players, on the other hand, were simply no match to the iPod’s digital music storage features. By October 2004, the iPod has already cornered 70% of America’s market for portable music players . Currently, the iPod is the best selling digital music player of all time, selling its 100 millionth iPod on April 9, 2007 .
With the huge and almost instantaneous success of the iPod, it was inevitable that controversies soon arose. Rival companies filed numerous patent infringement lawsuits against Apple Inc. Several dissatisfied customers used the Internet as a means to criticize the iPod’s flaws and its alleged monopoly of the portable music player industry. It is in this light that I would like to defend Apple and the iPod against the people accusing it of monopolizing the industry because in my opinion, Apple Inc’s iPod is in the midst of a monopolistic competition.
To begin with, the portable music player industry has no barriers to entry. In fact, with so many major players in this industry such as Sony, Microsoft, Creative, Samsung, it’ll be hard to argue that Apple Inc. has restricted entry to the industry to a select few. The technical know-how of building an mp3 player is widespread. The technical and legal barriers of a monopoly in this industry don’t even exist as can be proven by the countless mp3 players coming from China and around the world.
As far as I am concerned, Apple isn’t forcing these players out of the market. While some argue that Apple’s iPod and iTunes combination is slowly monopolizing the market, it is not the fault of Apple that the consumers embraced the iPod and iTunes to the extent that it has such a dominant share of the market. As a matter of fact, Apple’s iTunes has its competitors from rival companies the same way that iPod is competing against Microsoft’s Zune and Creative’s Zen. Owners of the Zune and the Zen can use different softwares to upload digital content to their portable players, thus rendering the argument of iTunes monopolizing the digital music upload software unfounded.
Apple isn’t forcing the iPod and iTunes down the throats of the consumers the same way as monopolistic firms do. The portable music player industry has a wide array of products that consumers can choose from- each with its own strengths and weaknesses. They come in various designs and specifications depending on the taste and lifestyle of the consumers. For example, Creative’s digital music player, the Zen, has an FM tuner, voice recorder, and an organizer that can be synched with Microsoft Outlook , all of which can’t be found in Apple’s iPod. Microsoft’s Zune, on the other hand, is priced way below that of its iPod counterpart, thus offering consumers a cheaper alternative to the iPod. These points further prove that contrary to that of a monopolistic industry, the portable music player industry is in fact enjoying a healthy competition from its major players both in terms of pricing and product differentiation.
To end my point, I think people are only quick to accuse Apple Inc.’s iPod of monopolizing the market because of its huge success without giving Apple credit for revolutionizing the industry. Apple deservedly succeeded because it was the first mover in the industry that offered consumers with an innovative and trendy product. The iPod was embraced by the consumers because of its revolutionary features and jaw-dropping design- and not because the consumers were left with no other alternative. In the Philippine context where social status is of utmost importance, Apple’s exclusive and high-end image serves as one of the driving forces behind its success here. Truth be told, the Zen and the Zune are putting up a big fight in their quest to cut into the iPod’s dominant hold of the market. The only problem is Apple’s iPod first caught the fancy of the consumers way back in 2001, and it still continues up to the present.
Power Up: Sheikh-ant Do That! (Sheikh Can't Do That)
Power Up: Sheikh-ant Do That! (Sheikh Can't Do That) by Kathryn Pua
Energy is one of life's staples. We need food to give us energy to do the day's tasks and electricity to power up our various technological devices and machines (most of which we can't imagine living without). We need oil to power up our cars so we can drive to different places. The fact of life is that we need energy in practically everything we do-- life just wouldn't be the same without it. In most countries, oil and electricity-- due to the huge capital needed for the equipment and operations-- are at the mercy of monopolists and oligopolists. In particular, most of the world is at the mercy of OPEC for it needs oil to sustain not only cars but a lot of machines in different industries. Add to that the fact that most energy sources are non-renewable and difficult to find substitutes for. Despite the prices of oil rising, we can't help but continue our consumption as we see it as a necessity in life. The article "Barrelling Upwards" detailed how oil prices hiked up ($82.38 per barrel) due to a decision by OPEC to increase production by 2%, due to the worry that supply might not meet increasing demands, and lastly due to the market's reaction to the Federal Reserve's decision to cut interest rates. Most people see it as in inelastic good-- such that price increases will only decrease consumption by a small amount because consumers aren't very responsive to price changes. This attitude is better explained by the role of oil, electricity and all other forms of energy in our life rather than an improved economy or a higher income.
Science has come up with various renewable energy sources but most of them are either impractical, too expensive or inaccessible to the common man. It is in this context that Britain sees fit to turn to the sea for power, for renewable energy. According to the article "British Sea Power" from The Economist, Britain has geared its efforts at developing an alternative source of energy for the future, a marine-energy industry. The plan is for a wave farm where 30 machines will generate up to 20 megawatts of power. This endeavor, however, is not an easy one. The cost are no small amount and the technology on wave power is still relatively immature. There is also the issue of fluctuating power though it isn't a main one, given that rough seas and tides are there almost everyday of the year. However, costs can be offset in mass production, as economies of scale shall be put to work. Although the costs of today are a gargantuan amount, the benefits that the future will reap will more than make up for the costs of today.
In light of this, the Philippines too has had a few successes in the realm of renewable energy sources. According to my research, we have biomass (from coconut, rice hulls and sugar), geothermal (in Leyte,Albay, Laguna), hydroelectric (Pulangi, Agus and other rivers), solar (Northern Mindanao) and wind energy (Masbate, Romblon, Palawan, Batanes, Catanduanes, Marinduque, etc.) at various farms and plants. Yet the sad reality is that we are helpless at the hands of Meralco; we still use relatively the same amount of electricity despite constant price increases. Despite the presence of substitutes, because they are not always readily available (most of the renewable sources lie in the outskirts of town or in provinces), we urban folks have no other recourse but to depend on Meralco. We see at work here the reality that the consumer has relatively no power if the good has barely any substitutes (particularly for us urban dwellers). Although the government has more than once argued that there is barely budget for research and development of these alternative sources of energy, they should still allocate funds to these, for as said earlier the benefits will be reaped in the future-- not only in terms of costs but also in terms of the environment.
Aside from electricity, another staple source of energy is oil. Here, the consumer is once again relatively powerless as oligopolists hold most of the market and can mostly control production and prices. The article in The Economist entitled "Sheikh Up" details how the cartel is back in control for the time being. They boosted up their production and increased oil prices consequently. This is opposed to their decreasing their production last year to signal its desire to stop prices from falling below $60 a barrel. OPEC reasoned out that increased prices were implemented to regulate demand, especially in countries like China who have an unimaginably huge demand for oil. Also due to fears of possible shortages due to natural calamities, prices once again rose. Time cleared away those fears but OPEC still kept its prices up. At the present, OPEC is in control of oil and its prices and has the decency to increase supply as well if occasion calls for it. The article says that despite meetings with OPEC, people must still not expect much from OPEC. It ends with a short analysis that the effect of high prices constraining demand will soon surface-- despite recent trends of oil consumption in China. It predicts that OPEC's control over oil now will not likely last for the above-mentioned reasons.
Based on what I've learned in class, the OPEC's behavior truly paints a picture of a typical oligopolist. As profit-seeking firms, it decreases production when prices are expected to be low, indicating its desire to prevent any further decrease in price. Recent oil consumption trends seem to be defying economics-- yet they wouldn't be called laws were it not for their viability and time-tested truths. As such the laws of economics will soon prove itself right. I believe as well that if the OPEC continues to raise its prices unreasonably, people will get creative and their industry will lose loyal customers and will be replaced by newer, better and more efficient sources of energy. With unreasonably high prices fro energy, people will be forced or pushed to try alternative and cheaper sources of energy something renewable and something beneficial for the consumer and Mother Earth. In the end, their actions will have adverse repercussions on economic growth and they will have nothing else to blame but their greediness.
As for us consumers, I truly believe we have to power up and assert our power. We can't be like dogs on a leash-- on OPEC's or Meralco's leash. We should support contemporary sources of renewable energy. And should we have the means to, either now or in the future, we should financially or intellectually support researches on and actual implementation of these renewable sources of energy, for our future and the future of generations to come!
Source: http://www.economist.com/opinion/displaystory.cfm?story_id=9804057 and http://www.economist.com/displaystory.cfm?story_id=9827989 and http://www.economist.com/world/britain/displaystory.cfm?story_id=9833092
It is innate in all of us to strive and work hard for something. We are born to accomplish great things no matter what. Everything we encounter in life we want to be the best in handling it. We are made and customized to be competitors; to be winners. I think it also comes with our being Filipino; we have been under so many cultures that we have so many things we want to do. However, this is a life where money is most important; if you don’t have it you won’t function.
We Filipinos love Sports. We have been trying to excel in whatever game we can be good at, and I believe we have had our rewards just recently. However, we are also known as gamblers, and I must say that I’m not proud of it, but it is a fact. Jueteng, Horse-racing and even simple card games have penetrated the minds of Pinoys when it comes to earning money. Here comes in the merging of Sports and gambling. From the slightest bets on animal fights up to the world cup, people have been trying to allocate money from the popularity and excitement of sports, whatever it may be. I would like to focus on the game of basketball, because I can relate to it very much. I love playing the game and I can say that I have sufficient knowledge when it comes to the hidden world of basketball betting.
This perfectly competitive market of imposing the odds is very difficult indeed. It depends on all firms or “bookies” what odds or conditions regarding the end game scores would be. These conditions depend on how the reactions of the audience would be. If many would place bets on a single game, then the odds would be greater. The bookies are price takers and they are willing to risk a certain amount of price which can also depend on the many games of each day. The best source of these basketball betting games is the NBA. The National Basketball Association consists of 30 teams, each having 82 games each season. Imagine 2,460 games excluding the playoffs and finals! This business has so many opportunities of gaining the profit they want. These firms target practically every sport fanatic in the country and there are millions! I can say that this illegal but effective way of raising profits have already boomed in a way that it’s even adapting and growing to economic conditions. There are already so many basketball leagues in the country and these firms extend their coverage from the UAAP up to the PBA. Filipinos nowadays find it even more amusing to bet on a game they can grasp more or control themselves.
The greater problem comes in when firms tend to control the market in a way that they manipulate the games. Game-fixing has been an issue in our country and this is so because of the fact that gamblers want to win. In this situation, firms try to persuade the players or even coaches to “sell” games or give them up to win the larger bet in the end. They are risking a certain amount of money to ensure their possession to a much larger amount in the end. These factors affect this industry in an unjust and unfair way, but that’s what you have to face when you want to be a big earner.
Personally I must say that this illegal business of game-betting gives a large profit but of course it is morally inappropriate. Having these games continues to pull down our country towards a deeper hole of economic instability. We must focus on finding better ways of being able to earn a certain amount of income. This way of circulating money gives away the chance for the majority to improve or even sustain a life at least. Legal ways of making money must still be implemented by the government, but this does not mean legalizing all these games would provide a greater improvement for our country.
Over the past couple of years, Manila has seen a significant surge in mall constructions driven by the 3 major players in the market—Ayala, SM, and the Ortigas. While this has roused much speculation and excitement among market-watchers, retailers, and consumers, the emergence of these newer malls does not seem to have matched the initial hype as numerous painted plywood boards still line many an aisle.
With several new malls opening within “high foot traffic” areas such as North Edsa, there is obviously an over-supply of mall spaces in Metro Manila. As developers try to grab their share of the pie, the Metro Manila market just does not seem to be ready for such a growth. Hence, one would notice a significant worsening of occupancy rates in the once-fully-packed malls. Where the oversupply may seem disadvantageous to the developers with the resulting stagnation of rents, retailers actually bear the brunt as they are the ones chasing after both developers, for prime spots, and consumers, for sales.
As highlighted in the BusinessWorld article Retailers, developers complain of oversupply in mall spaces, “People shift easily to the newest mall, and if a retailer does not have a presence there, customers might forget about that store.” With the recent boom in mall construction in major shopping areas, retailers benefit from the natural rent control brought about by the increase in supply, but ultimately lose to increased operational costs as additional branches in nearby malls are opened due to pressure from the shift in consumer behavior.
Casual encounters with entrepreneurs show that new entrants are more severely disadvantaged, as they are forced by the developers to open branches in low-occupancy malls before the requested mall spaces are granted. Further, where operational overhead such as utilities (electricity, telecommunications line) and even banking services may be regulated by developers given the diversity of their holdings, these services are imposed on exclusive terms to the retailers to generate a higher profit margin for the lessors. Initial investments and operational expenses are hence driven abnormally high for these retailers, ruining potentially successful business cases.
As such, while the demand for mall spaces may in reality be commensurate to the growth in supply, various economic factors as well as the developers’ reaction to the market condition contribute to a cycle that result to a net excess in supply. A moratorium in mall constructions is indeed a consideration that needs to be seriously evaluated and implemented to contain the problem of oversupply. As the market demand and consumer growth catches up with the supply, this can be reviewed and eventually lifted.
Do you want to be millionaire or billionaire? Probably you will say “sure or of course” However, you do not know the way to be rich. Then, let’s benchmarking those who the richest one in the world, the CEO of Microsoft inc. William H. Gates. He is the first one who founded Microsoft company, and develop the program such as DOS, BASIC and WINDOW series. No one doubt that Microsoft was the monopoly in the computer market before dividing two companies by USA government. He and his company have made money for 30 years to sell computers, soft ware and other inventions. No one even though Apple disturbs its way and makes it stop, because Microsoft is strongest monopoly based on its own technology.
Second, focus on the Philippines, there are almost Japanese cars on the roads, because Japanese car companies are monopoly in the part of cars’ component market. Every part of car such as engine, wheel, gear and so on are made in Japan and factories in the Philippine do assemble the parts and produce cars. It gives advantages to the Japanese company, first one is giving stable monopoly state and second they can sell their component to Philippines local car factories. Because Filipino assembles the parts of cars, so they do not have any chance to learn or get any information about making cars. As Japanese company does not give any technical idea of cars, the Philippines have to depend on supply of Japanese products. Moreover, in local car market, all component of cars are made by Japan, so if the local car does not work, they should buy new component made by Japan in high price. Japanese car companies make lots of money through the advantage of monopoly in the Philippines.
Third, if you have your own idea, how will you be rich as using the idea? The key is patent. Patent prevent you from invade other competitions and keep your entity stable monopoly to get money alone in the market. The patent is a legal way to confirm that the idea is available to only you and if someone uses the idea without your permit, the one should be sued. The government will keep you and your idea from other follower. It is the way to be rich as a monopoly company in the market
I've got this X-box right where my heart used to be
I've got this X-box right where my heart used to be By Zerge Zandueta
About four months ago, I went to Powerplant with my family and entered this store called Mobile 1. I was just wandering around and ended up inside this store since it sold it electronic gadgets. Being a boy, these are the sort of things that attract you. Girls may never understand but I was awestruck when I saw the new PS3 in display. It was so sleek, so black, so sexy I wanted to hug it. I haven’t seen a game actually played on it, but externals alone, it was a sight to behold. As jaw dropping as it was in appearance, its price was even more so – P57,699. That’s fifty seven thousand six hundred ninety nine smackers for a console.
How much to sell my spare kidney to afford the PS3 is not the topic of this entry. What I’ll talk about here is the video game console industry and how they operate.
There are three video game console giants in the world today. Two come from Japan – Nintendo and Sony, while the third is Bill Gates’ Microsoft. Sega was formerly in the mix before troubled times relegated them to being only video game producers. Given the number of these companies, it is obvious to see that they are in an oligopolistic market structure. While Sony and Nintendo also sell handheld devices (PSP, Gameboy/DS), I’d like to direct our focus on their next-gen consoles: PS3 for Sony, Wii for Nintendo, and Xbox 360 for Microsoft. These three companies account for all the production of video game consoles around the world. Unlike in other oligopolistic structures such as gas, differentiation is essential to sell their respective products. And so these 3 have different features. For example, the Wii focused on family-based fun with their interactive remote. Sony, for its part, developed a monster of a machine (3.2 GHz processor, 20/60 GB internal HDD memory, etc.) with a capability of playing Blu-Ray (the next gen DVD format). The Xbox 360 is set up as a slightly weaker version of the PS3 but is cheaper and already has a ton of games out in the market. Other competitors can’t easily enter this market since the companies have a natural barrier to entry. First of all, these three companies are already way ahead in terms of technology. These companies actually have plants and formal work teams devoted solely for the conceptualization and production of the consoles. They have research and development teams who focus solely on developing the product and their suppliers are scattered all around the globe. Secondly, they have an established reputation and are household names (in fact, the spell checker in Word doesn’t even underline these brands anymore).
As of the moment, the Wii, despite being the least graphically appealing of the three consoles, is beating the other two in terms of sales. Despite being behind on every aspect of machine performance, the Wii is winning the hearts of people everywhere. The console could be found in day-care centers and home for the aged alike. Although sales reflect the Xbox 360 ahead by 1.28M (units sold) as of May, pundits say that the Wii has already overtaken the Xbox 360’s sales last September. Microsoft had the early advantaged since it released the console some months before Nintendo did.
Looking into the strategic decision-making that goes on in oligopolistic markets explain part of the reason why. An oligopolistic firm must always weigh their competitors’ reaction to a decision they make. Aside from this they must take into account decisions already made by their rivals before arriving at their own. The Nash Equilibrium, which applies to this kind of market structure emphasizes that, “Each firm is doing the best it can given what its competitors are doing.” Most of the oligopoly models taught to us in class are based on the oligopolistic players selling a homogenous good. So, I can’t really see how they can be applicable in this scenario of the video game console industry. However, the fact is ascertainable that Nintendo very well took into account the decisions made by its competitors in producing its console, the Wii.
The trend in the video-gaming industry has always been towards improving visuals and graphics. Since the days of Pacman, computer gaming has very much evolved into producing such life-like characters as Solid Snake, Claire Redfield, and the new Pacman himself - Manny Pacquiao (Fight Night 3). Video-games nowadays just keep on looking better and better. Taking into consideration the fact that its competitors would continue on with this trend, Nintendo opted to take another road. They decided to sacrifice graphics to make a highly-entertaining, family-based, interactive console in the Wii. The remote you use while playing actually motion-captures your moves, so this time around, you don’t mash buttons – instead you punch, slash, and swing at air. Because they decided to use a lesser technology in terms of graphics, they were able to lower their price at around P20K. As it turns out, their strategy worked like a charm. Instead of competing at making their console meaner and more powerful, they were able to create a niche in the market previously unaddressed before. In their strategic decision making, they were able to gain an advantage.
Perhaps another fact that contributed to Nintendo arriving at such a strategy was the fact that their previous console, the Gamecube was such a flop in comparison to the Xbox and PS2. Being able to set their own prices, the big 3 in the video game console industry has to create a demand for their product. Let’s face the facts, video gaming consoles aren’t really a necessity. When demand for a console lowers, sales drop and the company faces the possibility of a loss in its investment. The drop in demand for the Gamecube during 2002 cost it a lot of money, since they have factories put up to supervise the console’s production. Without profits, they can’t recover the costs spent for these factories, sunk as they may be. So to increase demand, the company lowered the console’s price. The strategy worked, and the other two competitors were at the same time hurt by the move, having to slash some off their price to avoid losing too much market share to Nintendo. This previous experience in gaining an advantage by using a low price may have had a say in the company’s strategy with the Wii. So past decisions count too in an oligopoly.
Okay, okay. So what I’ve probably talked about was pretty boring. Yup, I’ll be the first to admit, I kind of got bored writing it too... I hope you learned something though. In any case, I can assure you, reader, that playing one of the mentioned consoles would erase your boredom. Promise!
So see ya around, I’m off to the hospital.
“When a man with experience meets a man with money, the man with experience ends up with the money and the one with the money ends up with the experience.”
UAAP season has come and gone and once again I'm reminded of an issue usually swept under the rug-- betting and gambling on sports. People from all ages and all walks of life do it-- they place their bets on lotteries, casinos, horse races, cock fights, dog fights, etc. Indeed, there's definitely the economics of gambling! There's the hush-hush aspect of gambling and there's the out-in-the-open types. Such out-in-the-open, "legal" venues for gambling draw in so much cash daily that they truly are worth the attention. Speaking of which, I recently came upon an article about the world's biggest casino located in Macau. The article "Macau Wow" talks about the gambling industry in Macau and particularly the newly opened Venetian Macau. The world's biggest casino cost a fortune to build ($1.8 billion to $2.4 billion for construction costs alone, according to the article) and a lot more to operate (needing "16,000 employees and enough power for 300,000 homes").
The article also talks about how the local monopoly was penetrated by the Las Vegas operators, hence decreasing the customers of Macau's old casinos. As I've learned, real casinos are usually monopolies or oligopolies, with very few market players-- as explained by the huge capital or funds, requirements and efforts needed to set one up and keep it in operation. According to my research, in order to open up a casino, one needs to obtain licenses to operate, gather investors, accumulate funds, set up the tables and machines, tackle the construction, etc. Add to that the perennial dealings with government agencies who check up on the casino's operations. These barriers to entry are difficult enough to tackle and if you add to that a government granted monopoly, you have an almost impenetrable market. Particularly in Macau, the local casinos used to be secure through a government-protected monopoly. Hence, as I've learned, local Macau operators probably had a huge market power. But it opened up the industry to Las Vegas operators and now local Macau casinos are forced to compete in a deadly market, especially against the newly opened Venetian Macau, which will surely draw in not only tourists but also locals. Since firms seek profit maximization, more foreigners have since then penetrated the market-- realizing its profitability and clawing at each other just to have a bigger share of the pie.
Aware of the industry's situation, however, Chinese authorities have intervened. They are now, according to the article, stricter about visas. This political intervention may be a hindrance to strategic planning, according to "Macau Wow" but the crowd turn-outs can very well assure their success.
Although the local casinos no longer have a monopoly over the market, it doesn't mean that they have to drop out of the race. As our lessons have taught us, firms in oligopolistic settings can still make positive economic profits in the long run. That means that if local casinos play their cards right and compete in the best possible strategy, they don't have to come out as losers in the industry. As I've learned, there many possible models for oligopolies and many possible ways to act or react in the market. Although at a disadvantage now, local casinos should take a risk and try something novel. Perhaps price competition can be an answer, perhaps they could persuade more government intervention, perhaps they could invent a new kind of game or maybe other methods combined can be the solution to their problems-- they'll never know until they try. They could use the major ace up their sleeves-- experience in the local gambling industry to predict customer's preferences and respond to their needs or create a new need altogether matching the local customs and culture. A few losses shouldn't leave their spirits daunted-- instead, they should respond bravely to the challenges mounted by the foreign casinos!
Name: Leontief Lovers Home: Manila, Philippines About Me: people wonder why we are called leontief lovers. it's simple, in eco, there is a canonical form of utilty and production function called Leontief Preferences / Technologies. In a two good/input world, you always would need the other good/input in order to remain satisfied/have the ability to produce... in other words, you will never substitute one good for another, you need to consume/use both goods at a fixed proportion at the same time... LIKEWISE, in our blog, WE WILL NEVER TRADE NOR SUBSTITUTE ECO FOR ANOTHER! See my complete profile
An economics professor and a student were strolling through the campus.
"Look," the student cried, "there's a $100 bill on the path!"
"No, you are mistaken," the wiser head replied. "That cannot be. If there were actually a $100 bill, someone would have picked it up."
Feudalism: You have two cows. Your lord takes some of the milk. Socialism: You have two cows. State takes one and gives it to someone else. Communism: You have two cows. State takes both of them and gives you as much milk as you need. Bureaucratic Communism: You have two cows. State takes both of them and gives you as much milk as the regulations say you should need. Bureaucracy: You have two cows. State regulates what you can feed them and when you can milk them. Then it pays you not to milk them. After that it takes both cows, shoots one, milks the other and pours the milk down the drain. Then it requires you to fill out forms accounting for the missing cows. Fascism: You have two cows. State takes both of them and sells you milk. Nazism: You have two cows. State takes both of them and shoots you. Liberalism: You have two cows. State dosen't care whether you exist, let alone your cows. Capitalism: You have two cows. You sell one and buy a bull.
PRICE IS IMPORTANT! (disclaimer: may be a little off-color)
"My Dear, would you go to bed with me for a million dollars?"
"Well, yes, I guess I would."
"How about $100?"
"What kind of person do you think I am?"
"My Dear, we have already established that. We are merely haggling over the price!"
When Apple launched the first generation iPod back on October 2001, it marked the dawning of a new era in the portable music player industry. The Walkmans and the portable CD players that were once the dominant players in the market were almost instantaneously relegated to the sidelines. With the iPod’s initial storage capacity pegged at 5GB and 10GB models when first launched, the portable 700MB CD players miserably failed in comparison in terms of storage capacity and portability. Sony’s Walkman and Walkman-inspired players, on the other hand, were simply no match to the iPod’s digital music storage features. By October 2004, the iPod has already cornered 70% of America’s market for portable music players . Currently, the iPod is the best selling digital music player of all time, selling its 100 millionth iPod on April 9, 2007 .
natural calamities, prices once again rose. Time cleared away those fears but OPEC still kept its prices up. At the present, OPEC is in control of oil and its prices and has the decency to increase supply as well if occasion calls for it. The article says that despite meetings with OPEC, people must still not expect much from OPEC. It ends with a short analysis that the effect of high prices constraining demand will soon surface-- despite recent trends of oil consumption in China. It predicts that OPEC's control over oil now will not likely last for the above-mentioned reasons. 
We Filipinos love Sports. We have been trying to excel in whatever game we can be good at, and I believe we have had our rewards just recently. However, we are also known as gamblers, and I must say that I’m not proud of it, but it is a fact. Jueteng, Horse-racing and even simple card games have penetrated the minds of Pinoys when it comes to earning money. Here comes in the merging of Sports and gambling. From the slightest bets on animal fights up to the world cup, people have been trying to allocate money from the popularity and excitement of sports, whatever it may be. I would like to focus on the game of basketball, because I can relate to it very much. I love playing the game and I can say that I have sufficient knowledge when it comes to the hidden world of basketball betting. 
This perfectly competitive market of imposing the odds is very difficult indeed. It depends on all firms or “bookies” what odds or conditions regarding the end game scores would be. These conditions depend on how the reactions of the audience would be. If many would place bets on a single game, then the odds would be greater. The bookies are price takers and they are willing to risk a certain amount of price which can also depend on the many games of each day. The best source of these basketball betting games is the NBA. The National Basketball Association consists of 30 teams, each having 82 games each season. Imagine 2,460 games excluding the playoffs and finals! This business has so many opportunities of gaining the profit they want. These firms target practically every sport fanatic in the country and there are millions! I can say that this illegal but effective way of raising profits have already boomed in a way that it’s even adapting and growing to economic conditions. There are already so many basketball leagues in the country and these firms extend their coverage from the UAAP up to the PBA. Filipinos nowadays find it even more amusing to bet on a game they can grasp more or control themselves. 
Over the past couple of years, Manila has seen a significant surge in mall constructions driven by the 3 major players in the market—Ayala, SM, and the Ortigas. While this has roused much speculation and excitement among market-watchers, retailers, and consumers, the emergence of these newer malls does not seem to have matched the initial hype as numerous painted plywood boards still line many an aisle.
such as engine, wheel, gear and so on are made in Japan and factories in the Philippine do assemble the parts and produce cars. It gives advantages to the Japanese company, first one is giving stable monopoly state and second they can sell their component to Philippines local car factories. Because Filipino assembles the parts of cars, so they do not have any chance to learn or get any information about making cars. As Japanese company does not give any technical idea of cars, the Philippines have to depend on supply of Japanese products. Moreover, in local car market, all component of cars are made by Japan, so if the local car does not work, they should buy new component made by Japan in high price. Japanese car companies make lots of money through the advantage of monopoly in the Philippines.
