Journal topic #17: Tragedy of the Commons Experiment

this game was fun. First of all, in our team, everyone takes only one fish so at the end the fishes were overcrowded in the lake. No one tries to take as many as possible because they know that if they do that the fishes will get less, and they're trying to do is to let the fish to grow as many as possible and then try to catch them in the end of the round. in society, people don't reward those with the most because they are killing the fishes and causing the ecosystem to be damaged. No one tries to take too many fish. People aren't reward fir doing so. In the second game we still made the fishes grow and then catch them but the only difference is that we started to catch them in the last three rounds. it's not possible because both of the number aren't suppose to be compared. Yes, in cafeteria, people try to cut lines and get many food to benefit themselves but the result is that other people won't have any food for them to eat. However, when the food is really bad, food becomes overproduced and later becomes a waste. Natural resources such as fish, crab, lobster, and other. People can use 

Journal Entry #16: Topic: Game Theory and Chicken

The prisoner’s dilemma is a canonical example of a game analyzed in game theory that shows why two individuals might not cooperate, even if it appears that it is in their best interests to do so. In the game theory, Adamn Smith wants people to act a way that everyone gets benefits but it’s erally hard because everyone wants to act in a way where they can pursue their self interest. Game theory can prevent people from doing the wrong decision as a whole but it’s not possible to be exert into real life situation. Bad outcome is unavoidable of course because people like to like in their self interest, and when someone act in their self interest they cause other to act like them or cause other to act in another way which they won’t get benefit as a group. Bad outcome can be avoidable when people cooperate together. A better outcome occur is when two people doesn’t act in a similar way such as one confess and one doesn’t then both of them will get one year sentence. However it’s impossible because people act in their self interest, and that means that they want to get the least sentences they could and don’t care about what another person gets. It’s really hard to get a good outcome if they don’t cooperate. 

Journal Entry #15: Topic: What is a Monopoly?

The monopoly is a market with a single firm that produces a good or service for which no close substitute exists and that is protected by a barrier that prevents other firms from selling that good or service. In a monopoly, the supplier decides the produce and what price to change from the supply and demand curve which it’s trying to make the marginal cost and marginal revenue the same, maximizing economic profit. The cost for the monopoly is that the monopolist needs to figure out how to produce or control the market price, and the benefit is that the monopolist can control market price by maintaining their business or company because they’re no close substitute. They are concerned about inefficiency because inefficiency might have inefficiency on resources that a lot of waste is produced. High markup, for example the diamonds, are one of those monopoly that doesn’t give enough money to the Africans who get their diamonds for the supplier. Economist doesn’t like monopoly is that it transfers income away from consumers to monopolists. Economist doesn’t like inefficiency because on one can entry the business because a single seller or the first seller will benefit the most comparing to the new adding business in monopoly. Their benefits, monopoly, are innovation and creation that a firm gets a patent. It’s is worth it because if you contain a monopoly continuously then you’re stil the price controller and therefore you can still get your benefits.  

Journal Topic 14 - Productivity Experiment

In the beginning, with only one worker, the production was really slow. Then, when there’s a second worker, the production gradually becomes faster. After 4 and 5 workers come in to join the company, the company still has a increasing and accumulating production. However, until the sixth worker, law of diminish returns appear because one the one more member join. That one member is useless to the company because the company has already fulfilled the requirements to produce to the maximum in the fifth worker. Division of labor isn’t really efficient also because Jimmy Chuang doesn’t assign the work really well, and he didn’t recognize people’s specializations. However, after some gaining experiences from Jimmy, he assign people who are better at cutting folding or stamping, which is giving people their specializations. Things weren’t expected people our company’s workers started the job when the company hasn’t open yet, so it’s inaccurate. No surprise at all. In a short run people should adjust one of the variable cost such as how many workers should work in their company, because if there’s too many workers in a company, the company might faces the law of diminish returns. In a long run, they should worry about all their variable cost including all of the factor of production such as how many labor to get, how many capital should they use to maximize their total revenue, and how to use their entrepreneurship.  

Journal Topic 13: The Return of the Zeppelin

The things that determines whether to demand of the return of the Zeppelin can be contradictory because from the Hindenburg accident, a lot of people die, and it might make a negative view of an airship, therefore, people won’t going to demand it. Another perspective is people might demand a lot of Zeppelins and Airships because people often like to take risk and other people also will like to look around the world by a airship since a lot of people might be waiting for their coming ups since 70 years ago, like the guy in the video.  Technologies have changed a lot of the functioning of the airship, so therefore, people feel safer to use a airship since it’s more well made than before. Just like airplane, people died a lot before from airplane accidents, but it’s lessen everything when technology improves. I think it’s a monopolistic because only a few competitors compete with each and another. It’s really close to a monopoly because the video says that only 3 airships are in the world now. First of all, is the quality of the airship, and then the improvement of the safety and technology, and the cost of the airship might be three important factors for demanding an airship. If an airship improves its technology or safety, people will demand more and successfully. Quality is another important factor or determinant for demanding an airship because people often decide to buy or not by its quality. It’s a great idea that people can travel and enjoy seeing the whole view of the world by airships. Under the circumstances of the most important, safety and high technology because it’s the most important thing to be safe and settled down when doing any kinds of thing. 

Journal Topic 11: Brand Names and Utility

Obviously, we will buy or demand the goods or services that are cheaper and more in our self-interest. In Wal-Mart and Costco and other big company stories sells goods that have brands. Goods that have brand names are more expensive than no brand names goods. The quantity demand for the non brand goods increase and the quantity demand brand that has name are lower than it. I think it’s more utility because a brane name are more quality and durable, and so on, but as a consumer, I’ll choose goods that have cheaper values if they are the same goods and products. In Aldi, every goods comparing to other companies, their goods are 50 percent less. People started to consume goods in Aldi because other companies sell the same thing as Aldi, but Aldi only change the brands into non brand names. If I’m saving money, planning to retire earlier, or other plans, I’ll go to Aldi because they sell cheaper products that are same as the other companies. Oreo is a product that I think it needs brands because I ate a lot of non brand oreo or fake oreo that taste really bad. I basically accept any non brand stuff if they have low prices than the others.