Explain and illustrate, using graphs, the effect on economic Research Paper

Explain and illustrate, using graphs, the effect on economic efficiency of government prices control and taxes. include an example of a government price control - Research Paper Example Together these two concepts form the basis of economic efficiency. Economic efficiency is nothing but the presence of both production and allocative efficiency. Production efficiency is another name of cost efficiency. The term can be mathematically defined as following: The figures 1.a and 1.b above show the necessary conditions for productive efficiency. In Figure 1.a, productive efficiency is achieved where point MC curve has intersected the ATC (Average Total Cost) curve. At this point, the production of Q1 goods is going to cost the least and at this point productive efficiency will be obtained. The same is shown in Figure 1.b. The point where MC interests the ATC curve is the point where the firm is experiencing the minimum possible costs. Any production at this point is going to achieve the necessary conditions for productive efficiency. The allocative efficiency is always achieved at a point where the minimum amount of effort produces the maximum result. In other words, any change in resources are not going to increase the output because the currently employed resources are producing the maximum output. If there is room for increasing production by changing the resource allocation, then the point of allocative efficiency is not achieved. In figure 2, the point â€Å"C† is not allocative efficiency because resources are underemployed and output can be increased by employing more resource. However, Point â€Å"A† and â€Å"B† are both allocative efficient because resources are producing the maximum output. There is no room for the increase of the production at this point until there is technology advancement or increase in the population, both of which are long-term considerations. Economic efficiency can be looked at from another point of view. Economic efficiency can be described as something that maximizes the benefit of a transaction for both producers and consumers. The benefits for consumer and producers can be looked upon as consumer and

Security Incident in the Airport Case Study Example | Topics and Well Written Essays - 750 words

Security Incident in the Airport - Case Study Example As the saying goes; prevention is better than cure. The incident that happened at the lax airport should have been prevented. This could have evaded the delay in flights and the losses that the passengers encountered as a result of the delay. The man who sneaked in terminal four with a backpack should have been seen before he attempted the stunt. The first thing that could have been done to prevent this problem is keeping all access to the terminals checked. There should be only one access to the terminals for all civilians with all other access that are used by staff manned by security personnel all the time. These accesses should be given limited access and should be used if necessary. These are not only the access that the man could have used. In addition, fire escapes should be kept shut at all times unless there is a fire emergency. Security in and around the airport should be buffed up and agents advised to control the human traffic in the airport and be on the lookout for susp icious people. When a situation like that happens, an airport the first thing is to ensure the safety of all the people at the airport. Since it’s not known the intention of the man trespassing to terminal 4, shutting down the terminal is a good option. The next step would be to bring more security personnel to the terminal to control the crowd. Since the terminal is shut down many will want to move out of the terminal using the lifts and escalators. This presents another danger to the people in the terminal. Shutting down the escalators and lifts will ensure that there will be no accidents caused in these areas. Trying to get an order  in the chaos will be hard but will be the only way to ensure that every one is out of risk. The other step will be to arrest the man who trespassed and ascertain the danger that he posed. This will help erasure the passengers that the danger that was posed has been controlled and everyone needs to be checked again.