Microeconomics

 

Labor Unions

In this essay I’ll write about union membership, membership trends, the two types and levels, and the importance of unions. I’ll also discuss some of the negative sides of unionization in today's corporate America.

Labor unions are groups or clubs of workers and employees who bond together to get good conditions, fair pay, and fair hours for their labor. These unions are usually joined together, and most unions in America are some branch of the largest labor union organization in the United States, the AFL-CIO with thirteen million members.>>>

Medco Accredo Merger

On Wednesday, February 23, Medco (NYSE: MHS) announced they where acquiring Accredo Health (NASD: ACDO). This acquisition is valued at $2.2 billion. The deal is expected to close in mid 2005 after an approval by the shareholders of Accredo and some other customary closing conditions. >>>

Peabody Energy Corporation

The article I’ve chosen describes an energy company’s future plans to purchase additional resources -mines - , in order to enter the Chinese market. The Company mentioned is the Peabody Energy Corporation of St. Luis, which is the world’s largest shareholder-owned coal company. It has plans of purchasing two coal mines in Australia which could support the steel industry in the rapidly developing Chinese market. >>>

Microeconomics Cheatsheet

Law of diminishing returns: when additional units of a variable input are added to fixed inputs after a certain point, the marginal product of the variable input declines.

Average product: the average amount produced by each unit of a variable factor of production.

Marginal product: the additional output that can be produced by adding one more unit of a specific input, ceteris paribus. (AP is at its maximum at the point of intersection with MP.

Fixed cost: any cost that does not depend on the firm’s level of output. These costs are incurred even if the firm is producing nothing. No fixed cost on the long run. >>>