TAKEN FROM: http://www.infernalramblings.com/articles/Economics/143/
Okay, so I was looking for econ articles online a few weeks ago and came across this "Econ love song" I guess you could call it. I don't know why I find it so funny, maybe because I'm a nerd. Just read first and then look below...
Girl, being with you has always been so tough
With each passing minute, your marginal cost goes up
But my love is inelastic and it all belongs to you
I’m the only love producer, and my good is for you to consume
Because girl your marginal benefit far outweighs your marginal cost
Without our equilibrium baby, you know I’d be lost
Trapped inside this market I need you, to buy my love
Girl without your complementing goods, I’m not enough
Now you say that I’m producing, below my ATC
But I’m optimizing quantity baby, why can’t you see?
We could share this surplus, each and every day
If you would just buy my love, I’ll make my fixed costs go away
Baby I want to keep you for the long run, Oh yeah
I think our supply and demand, will become one…
Because girl your marginal benefit far outweighs your marginal cost
Without our equilibrium baby, you know I’d be lost
Long run equilibrium is no place for me
I need the profits of our love, to grow exponentially.
Pretty creative, eh? The site I linked isn't from the actual writer of the song, but there is another person giving an analysis of the inaccuracies of the lyrics (there's quite a few). For example, the analysist points out that love cannot technically have a marginal benefit or marginal cost due to the fact it can't be considered a "good."
Another funny point he brought up was how the love betweeen the couple can't be considered an actual free market with equilibrium because there is only one producer (boyfriend) and one consumer (girlfriend), technically making their relationship a monolpolistic, with the singer needing his girlfriend to buy his love rather than wanting it.
Can anyone figure out what's wrong with the line "Now you say I'm producing below my ATC, but I'm optimizing quantity, baby, why can't you see?" The answer is on the site if you can't figure it out.
Sunday, March 18, 2007
Sunday, March 4, 2007
Caribbean accepts Banana Tariff
TAKEN FROM:
http://www.bbc.co.uk/caribbean/news/story/2006/11/061109_bananatariff.shtml
A tariff imposed on Latin American bananans to the Caribbean and European Union seems to be doing its job after being implemented one year ago. A group from the EU and African Caribbean Pacific group is currently meeting to review a new tariff structure that will charge $225 U.S. dollars/tonne for Latin American bananas. EU officials claim that the newly implemented tariff system had increased banana imports into Europe and "had ensured a regular supply from ACP countries." Latin American producers are still opposed to the $225 U.S. dollar duty they must pay on exported bananans, but are in current negotiations with the EU to reduce the price.
"I think the tariff is just about adequate, because both the MFN (most favored nations) countries and the ACP varying degrees have been able to increase their exports to the market. So that suggest that the balance is probably just about right..." said Bernard Cornibert, banana official and head of the Windward Islands Banana Development and Exporting Company. Prior to the tarrif one year ago, Caribbean states were actually arguing for an even higher tariff, as they claimed imported Latin American bananas were diminishing their market share.
For Caribbean states, the implemented tariff actually strenghtens their economy because domestic producers are no longer competing against foreign producers (latin american). Bananas are also a vital part to the Caribbean economy, and the tariff keeps small family operations in business as well. The same situation could apply to any domestic producer facing foreign competition. Most often, these groups will be the ones to push for higher tariffs and quotas due to the fact both of these raise the domestic price and are good for business. After reading this article, it made me wonder if we had the same situation for imported bananas in the U.S.. Granted, the state of Hawaii does not produce enough bananas to support the U.S. population, but what would happen if Latin America and the caribbean had severe crop losses (from a hurricane let's say)? Would the U.S. be forced to import bananas from the ACP African nations?
http://www.bbc.co.uk/caribbean/news/story/2006/11/061109_bananatariff.shtml
A tariff imposed on Latin American bananans to the Caribbean and European Union seems to be doing its job after being implemented one year ago. A group from the EU and African Caribbean Pacific group is currently meeting to review a new tariff structure that will charge $225 U.S. dollars/tonne for Latin American bananas. EU officials claim that the newly implemented tariff system had increased banana imports into Europe and "had ensured a regular supply from ACP countries." Latin American producers are still opposed to the $225 U.S. dollar duty they must pay on exported bananans, but are in current negotiations with the EU to reduce the price.
"I think the tariff is just about adequate, because both the MFN (most favored nations) countries and the ACP varying degrees have been able to increase their exports to the market. So that suggest that the balance is probably just about right..." said Bernard Cornibert, banana official and head of the Windward Islands Banana Development and Exporting Company. Prior to the tarrif one year ago, Caribbean states were actually arguing for an even higher tariff, as they claimed imported Latin American bananas were diminishing their market share.
For Caribbean states, the implemented tariff actually strenghtens their economy because domestic producers are no longer competing against foreign producers (latin american). Bananas are also a vital part to the Caribbean economy, and the tariff keeps small family operations in business as well. The same situation could apply to any domestic producer facing foreign competition. Most often, these groups will be the ones to push for higher tariffs and quotas due to the fact both of these raise the domestic price and are good for business. After reading this article, it made me wonder if we had the same situation for imported bananas in the U.S.. Granted, the state of Hawaii does not produce enough bananas to support the U.S. population, but what would happen if Latin America and the caribbean had severe crop losses (from a hurricane let's say)? Would the U.S. be forced to import bananas from the ACP African nations?
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