Making of Rehabilitation Political Economy

Question: Discuss about the Making of Rehabilitation for Political Economy. Answer: Introduction To attain the monopoly market advantage most of the business operators tend to discriminate buyers regarding price when prices are reduced by the sellers, the number of people willing and able to buy commodities increase. On the other hand when prices have increased the demand of products decreases. In consideration of supply, price increase results in an increase in the supply of commodities. Subsequently, when a supplier wishes to increase demand, he or she lowers the prices of products to enable many to purchase the product increasing demand In some cases, suppliers tend to reduce the availability of products in the market to sell at higher prices (Greco, 2009). For instance, price occurs where a producer charges a different price for similar products to individuals in same economic level (Harris, 2001). A particular manufacturer will charge low prices for a specific buyer believed to be economical unstable. By selling at lower prices to low-income individuals, the producer sells more. Nevertheless, a supplier will increase prices to the high-income individuals and still achieve hiked income objective. As seen in the diagrams above, monopoly is a free market where the single producer in the market can employ both prices downscale and upscale to achieve the objectives. A seller can obtain the profits intended by selling products to each buyer according to their ability. This is termed as perfect discrimination as in the above diagrams. An economy according to the economists is perfect when produced commodities can be used to acquire other products. Various economies have shifting levels of various resources such as natural resources, human resources, and capital resources. Strategies used by different economies to produce commodities also vary in most cases but same goals to achieve. There are unceasingly prospects dedicated to every choice a nation sorts to create commodities. In this way, the forgone alternatives for products can be well explained. Countries tend to produce specific products and acquire other products from other states. This kind of production is termed as specialization leading to stable economies of the countries (Gritzer Arluke, 2009). The country should, therefore, produce a product to trade with a commodity with greater opportunity cost. When countries are producing goods from their natural resources the amount or prices, tend to be low compared to those produced with inadequate resources. A country should, therefore, specialise in a given line of production and obtain other products they cannot produce with ease from other countries which can produce the product. Equally, where a different nation has the ability, and absolute advantage to produce a product which another economy are able and willing to import, both the two economies tend to have better trading opportunities and relationship (Chu Wang, 2008). Trade remains advantageous to both economies even when one enjoys an absolute advantage in producing both products for trade. Given any two products, an economy has a comparative advantage in the good that has an inferior opportunity cost. Conclusion In conclusion, specialization by countries enables them to trade in terms premeditated in a manner that both economies decrease opportunity cost of the commodities of trade. For trading activities to occur there must be an exchange of one product for another, therefore if any country can produce all the goods, then there is no need for trade. References Chu, C. C., Wang, C. (2008), Economy of specialization and diseconomy of externalities Journal of Public Economics, 69(2), 249-261 Greco, A. (2009), on the economy of specialization and division of labour in Platos Republic. Polis: The Journal for Ancient Greek Political Thought, 26(1), 52-72. Gritzer, G., Arluke, A. (2009) the making of rehabilitation: A political economy of medical specialization, 1890-1980 (Vol. 15). University of California Press Harris, E. (2001). Workshop, household and marketplace: the nature of technical specialization in classical Athens and its influence on economy and society.