Demand and Supply: The Impact on Commodity Markets

According to the most fundamental laws of demand and supply, increase in the number of buyers of a given commodity is interpreted as an increase in the demand varies directly with the supply meaning that there will be the need to supply more units of the merchandise. In the marketing world, various commodities may have relatable uses and may find application across a larger population sample as compared to other products. For instance, diapers may be manufactured for either babies or adults. This, therefore, insinuates that the commodity is spread out evenly for the target market, although the demand may vary depending on the demographic population distributions in various settings.

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Baby diapers and retirement villages are two -products designed for different population groups. According to information published in the U.S. Census Bureau Web site regarding the population projections for the United States for the next few years, the two age groups above population distribution is seen to be varying inversely. While there is an ever-growing number of the elderly or increase in the number of people retiring, the number of new born babies have been observed to be decreasing drastically over the recent past few years. As a result, the market is likely to experience various changes in the diaper demands trends. With the number of elderly adults increasing, an increase in the need for adult diapers will be observed, and on the other hand, the demand for baby diapers will decrease given that the commodity users will be few thus lowering the supply.

The reason as to why the above population trends may be witnessed could be attributed to the economic setting. Parents are opting to have fewer children who they can comfortably sustain, thereby indicating the number of young children under the age of 5 years old is gradually reducing. On the other hand, the number of senior adults aged above 65 years old continues to increase since age and growth are two irreversible processes.

Long-run view of competition

Competition refers to the process by which service providers try to realize more economic value or profit for their products against similar service providers in the same market. Competition is an essential factor in the business world, given that it cultivates the basis for development in various business sectors such as an improvement in service delivery as well as innovation and improvisation. The long-run view of competitiveness may be defined as a period of business operation during which the factors of production and other related costs are expected to be variant (Kirzner, 2015). It is possible for a firm or any other given organization to adjust costs in the long run, given that they can make projections and adjustments in production operations.

La Croix is a corporation that specializes in the production of a wide range of beverages ranging from energy drinks to flavored sparkling water. The corporation is well adjusted in its business operations and has their outlets in almost every state in the country. However, according to the corporation's annual report to stake-holders, the business anticipates various challenges that they are likely to experience in their future business operations with competition from similar service providers being among the most frugal. There are various establishments that have also ventured into the production of similar products, and this is likely to spur competition for La Croix customers.

To combat this, the company has come up with various long-run adjustment measures which will help improve its competitive position in the industry. These measures include rigorous campaigning activities as well as rebranding aimed at maintaining the consumer's interest, thereby maintaining the consumer base at a normal.

Is Microsoft a monopoly-what did the courts conclude?

Microsoft is a company that has specialized in the world of computing since the year 1975 after its foundation in the county of Albuquerque. The company is involved in computer software production, operational licenses as well as the manufacture of electronic gadgets such as computers and various electronic chips. The founding member Bill Gates is ranked among the richest individuals in the world, and this is mostly attributed to the vast profits that the company makes in its operations. With minimum competition in their early years of service, Microsoft was able to establish an extensive loyal customer base whose loyalty has continued to date.

The question may arise as to whether Microsoft Corporation is a monopoly, but the answer remains quite elusive. This is because other similar service providers in the market are doing relatively well too. Some examples may include the Apple Corporation, Samsung, and Tecno among others who have also managed to survive in the market alongside giants such a Microsoft. Although in the recent past few years, Microsoft has been the most dominant service provider in the tech sector, today, the company is facing fierce competition from other corporations as well. However, due to the company's quality service provision to their clients, they have managed to remain relevantly competitive in the market (Rubinfeld, 2015).

However, a U.S. court of appeals imposed remedies relating to a lower court's findings that Microsoft had a monopoly in personal computer (PC) operating systems and had maintained its monopoly through illegal actions (Rubinfeld, 2015). At the U.S. Justice Department's Web site, www.usdoj.gov, use the DOJ Agencies listing to find Antitrust Division and then Antitrust Case Filings. Locate U.S. v. Microsoft and select District Court filings and then Court's Findings of Fact (11/5/99).

Case studies review

The World's 10 Largest Firms - What are their sources of economies of scale?

Economics of scale may be defined as the benefits that companies benefit from when production becomes efficient. It is possible for companies to achieve economies of scale through increasing production and lowering costs Friedman, M. (2017). This happens because costs are spread over a more significant number of goods, thereby making costs to be both fixed and variable Friedman, M. (2017). The world's largest firms have continually managed to their economics of scale, thereby enabling them to remain competitive as before as well as increase their overall returns. One way through which economics of scale could be achieved is through the diversification of products. Various raw materials and waste products in a given production setting could be utilized in another setting for the production of another commodity. This way, the overall production cost for the second product is lowered, thereby saving cost leading to efficient production.

The Apple Corporation, for instance, is one of the most recognized brands worldwide and have managed to apply the economics of scale in their production setting. With their products ranging from mobile phones to PC's, Speakers as well as other accessories, the company has managed to increase their production at a lower cost given that some of the production activities can share resources amongst them thereby eliminating the individual production cost of various components.

Another top firm that has managed to apply the economics of scale in their large size is the Agricultural Bank of China. Located in a country with a population of more than 1 billion people, the bank has managed to diversify its operations to cater to the various needs of the people of China. This has been achieved through the grant of loans and other benefits to their customers. The loans are then circulated throughout the system, ensuring that there is the efficient running of the giving and collection activities, thereby benefiting the firm on interest rates.

Farm commodity prices-Supply and demand in action

The agricultural sector is one area that plays an important role in the economic sector and is also among the highest revenue earners. The entire population depends on agricultural products for their food requirements as well as other uses, including fuels and other by-products. According to the U.S Department of Agriculture, there were various charts that were published outlining the various prices for different agricultural products. Corn, fresh vegetable produce, and animal products are among the three food categories whose prices have been on the light concerning their prices fluctuations (Norwood & Lusk, 2018).

According to the charts provided by the agricultural department, the price of corn was estimated to average at about $3.36 in the year 2015 and rose to $8.80 in 2018 a 4.16% increase in the average costs (Norwood & Lusk, 2018). There are various factors that may be attributed to the fluctuations in corn prices. These may range from the changes in the production costs, e.g., cost of herbicides, weather conditions as well as the quality of the produce. This has, therefore, leads to the difference between the stipulated marked prices by the agricultural department and the actual costs in the market.

The fresh vegetables are also affected by similar production factors. With the continued demand for organically produced farm products, the prices of the vegetables in the market have also witnessed shifts in their market prices. To begin with, the average rates in the year 2016 was approximately $2- $2.50. These prices have been observed to change by the end of the year 2017 with price specifications being dependent on the mode of production. Organically produced vegetables are relatively more expensive as compared to the inorganic produce. This is due to the healthy lifestyle adoptions that most Americans have taken up.

It is therefore relatively difficult to come up with specific prices for agricultural products given the various production factors at hand and their uncertainties. In such instances, only the average pricings are used to provide a rough estimate of the prevailing market conditions in the agricultural sector (Hill, 2018).

References Friedman, M. (2017). Price theory. Routledge.

Hill, B. (2018). Farm incomes, wealth, and agricultural policy. Routledge.

Kirzner, I. M. (2015). Competition and entrepreneurship. University of Chicago Press.

Norwood, F. B., & Lusk, J. L. (2018). Agricultural marketing and price analysis. Waveland Press.

Rubinfeld, D. L. (2015). Book Review: The Microsoft Antitrust Cases-Competition Policy for the Twenty-First Century. Journal of Economic Literature, 52, 374.