Twitter Quitters Post Roadblock Term Growth -Myassignmenthelp.Com

Question: Discuss About The Twitter Quitters Post Roadblock Term Growth? Answer: Introducation From business economics point of view, economies of scale can be defined as a process of producing more units of goods and services on large scale which consume fewer input costs (Newton Carnevali, 2010). If we relate economies of scale to Australian Airline Industry, then a clear definition from this perspective would be asserted as follows: Economies of scale of Australian Airline Industry occur when the industry undergo growth and development and increase its production units. Finally the industry will have a better opportunity to decrease its costs. Market structures that require economies of scale The main market structures in economics include perfect competition, monopoly, oligopoly and monopolistic competition. A perfect competition market structure is define from a perspective of many buyers and sellers. Products in perfect markets are homogeneous (Martin, 2009). On the other hand, monopoly market structure is defined from a perspective of many buyers and a single seller who dominate the whole market. Oligopoly market is dominated by few number of large sellers. On the other hand, monopolistic competition involves imperfect competition where products sold have been differentiated through branding. With a clear understanding of these market structure, the most appropriate market structures that require economies of scale are monopoly and oligopoly. Economies of scale and oligopoly Oligopolistic market structure can be established by existence of economies of scale in different types of industries. This market structure has few sellers of similar products (Dann Dann, 2004). If the industry is producing units that constitute a portion of the total available market, then the cost of production is reduced. As a result, the number of firms in the industry are reduced into a small number where each firm supply a sizable part of the total market demand. Economies of scale and monopoly Monopoly market structure can be established through economies of scale. This market has a single seller of a particular product. There are many buyers. Industries that dominate the market are likely to produce large units since the level of competition in the market is minimal. The average costs per unit of output reduce as production increase. A firm that produce this product will continue to produce large units until market demands are satisfies. The reduced costs of production culminate from economies of scale and a firm supplying this product may become a monopolist in the long run. If we consider the line graph below, each market structure has unique characteristics. We will determine market structure for Australian Airline Industry after analyzing features of each market structure. Australian Airline Industry operated as an oligopoly market structure. This is because, the industry constituted few number of service providers. From Australian Airline Industry case study, there are only two sellers of airline services. That is, Qantas and Virgin Blue. These two companies provide similar services to their customers. The only difference between these companies is based on mode of provision of airline services. In that connection, although the product is similar, product differentiation has been employed to brand airline services that meet consumers lists of preference. The number of seller have tried to differentiate their airline services. For instance, Qantas differentiated airline services by trying to defend its market share through service upgrades along with product innovations such as the CityFlyer services on key trunk routes. On the other hand Virgin Blue deals with leisure travel over major trunk routes rather than an integrated trunk and regional network which also follow under the category of airline services. It is clear that the two industries try to differentiate the services by rebranding airline services so as to satisfy their customers as we as to meet market demand (Balch, 2013). This is oligopolistic market structure. Emmanuel Macron has misdiagnosed France's ailing economy The business cycle that France faced in 2017 was economic depression. This cycle is associated with increase in the rate of unemployment, increase in the rate of inflation and decrease in the rate of GDP. GDP increased from 0.4 to 0.5, unemployment increased from 9.6% to 10% while inflation increased from 0.8% to 1.2%. This is a clear indicator that economic condition in France is not stable. The bar graph below is a clear indicate that France faced economic depression in 2017. The French economic depression or recession of 2017 can be represented by AD-AS model. Aggregate demand aggregate supply model indicates the output level in terms of GDP and price level in terms of inflation and unemployment and indicated on Macroeconomic Indicators for France, 2017. From the above AD-AS model, the macroeconomic model consists of inflation, unemployment and GDP of France in 2017. Both inflation and unemployment represent price level while GDP represents output of France in 2017. It is clear that leadership of Emmanuel Macron has not enabled France to undergo growth and development. From AD-AS model, the equilibrium point is less than potential output of French economic condition in 2017. What the president needs to do in order to have a favorable economic stability is based on GDP, inflation and employment (Krugman, Obstfeld Melitz, 2012). The rate of unemployment and inflation need to be kept low. On the other hand, GDP per person should increase. If these factors are considered, AD-AS model indicates an equilibrium point in the economy. Factors contributing to economic growth by AD-AS model Economic growth can be defined as an increase in real GDP of a country. When the value of goods and services produced by a particular country increase in value, then we consider that as economic growth. There are demand-side factors and supply-side factors of economic growth as demonstrated by AD-AS model. Demand-side factor of economic growth Consumers spending. If the consumers of goods and service use much of their earning to purchase goods and services, a lot of money will be in circulation (Hausman, 2007). This money will be used in a lot of economic activities that in return promote economic growth. Interest rates. If interest rates are low, investors will be encouraged to borrow money which will motivate firms to invest. Consumers will be willing to spend on goods and services. Consumer confidence. Economic growth depends on confidence of consumers and business. When the consumer is confident on which business to venture, then he will be motivated to borrow and spend (Sampson, 2013). As a result, there will be rise in economic growth. Unconfident consumer is always pessimistic and will only save or reduce spending thus reducing economic growth. Asset price. Increase in value of assets will forces people to spend more money that can increase economic growth. Supply-side factors of economic growth Levels of infrastructure. If the government supply resources to invest on transport, roads and communication, then firms are likely to lower costs and increase on production. Economic growth face competition at global level (Marshall, 2013). If a country fail to invest on infrastructure, then economic growth will become a challenge. Human capital. Productivity of workers has a perfect positive correlation to rate of economic growth. Higher rate of production culminate to higher economic growth. Technological development. The higher the technology the higher the rate of economic growth. The strength of labour market. Labour market represents workforce. Strong labour market promotes economic growth. The policy that the French government need to undertake to stimulate economic growth is labour market law. This will promote employment sector where employers will be willing to recruit many workers in their firms. This will enable France to reduce the rate of unemployment. With reduction in the rate of unemployment France will receive higher GDP per person along with favorable aggregate demand. Education is very important as far as economic growth of a country is concerned. Labour markets are also very important for economic growth and development. Investment on workers education would propel economic growth of France as indicated below. Workers will gain necessary skills and knowledge in different fields. Therefore, firms will be in a position to hire qualified workers. This will increase output per worker in the firm and contribute to economic growth. Education will enable workers to gain skills that will be applied in creating employment. The rate of unemployment in France is alarming and government alone cannot solve this issue. There is need to involve investors so as to create new jobs at personal level. This must apply education of workers. Workers will gain skills on how to develop infrastructure in France. In that connection, there will be development in terms of roads, transport systems and communication networks (Wilson, 2006). This will assist firms to cut down costs of production. There will be a lot of savings from these firms. The government will collect a lot of revenue from these firms. Macron would achieve long-run objectives of economic growth and development in France since educating workers is a way of empowering them. Education can be utilized by every worker in France while labour markets concentrate on a small portion of workers. It is better to empower more people indirectly through education than empowering fewer people directly through labour markets. The diagram below demonstrates long-run economic growth that France would achieve through educating workers. The diagram indicates how long-term growth incorporates worker productivity. In economics, it is clear that the influence of human capital, physical capital, fixed capital and technology contribute to long-run growth (Dann Dann, 2007). L1 indicates the level of output produced per worker at point A as a result of a single increase in labour force. This denote marginal product. In the long-run, the labour force changes to point B at L2 which indicates a positive growth in the economy. This can be associated with educating workers with skills and infrastructure that result to increase in skilled labour in the country. That is how France will achieve economic growth in the long-run. References Balch, K. (2013). BEA1010 Business finance for accountants: Lecture 1a [PowerPoint slides]. Dann, S., Dann, S. (2004).Strategic Internet marketing. Brisbane: John Wiley Sons. Dann, S., Dann, S. (2007).Competitive marketing strategy. Frenchs Forest, NSW: Pearson Education. Hausman, D. M. (Ed.). (2007). The philosophy of economics: An anthology (3rd ed.). Cambridge: Cambridge University Press. Krugman, P. R., Obstfeld, M., Melitz, M. J. (2012). International economics: Theory policy (9th ed.). Harlow: Pearson Education. Marshall, B. (2013). Accounting Information Systems (Australian edition). Frenchs Forest, NSW: Pearson Australia. ISBN-13: 9781442542594. Martin, D. (2009). Twitter quitters post roadblock to long-term growth, Nielsen Wire, https://blog.nielsen.com/nielsenwire/online_mobile/twitter-quitters-post-roadblock-to-long-term-growth (accessed 10 July 2010). Newton, L., Carnevali, F. (2010). Researching consumer durables in the nineteenth century: The case of the piano. Business Archives: Sources and History, 101(November), 17-29. Retrieved July 17, 2013 from https://vle.exeter.ac.uk/mod/resource/view.php?id= 217775. Sampson, H. (2013). International seafarers and transnationalism in the twenty-first century. New Ethnographies. Manchester: Manchester University Press. Wilson, F. (2006). The Freemium Business Model, A C: Musings of a VC in NYC, https://www.avc.com/a_vc/2006/03/the_freemium_bu.html (Accessed 6 July 2010).