Hospitality Industry Technology

Question: Create a poster on hospitality industry technology. Answer: Introduction The hospitality industry is said to be a broad group of areas within the industry service which comprises event planning, lodging, transportation, theme parks, tourism industry and cruise line. The backbone of hospitality industry is made up of customer service, which is an idea shared by all of the industry segments (Lee, 2013). Though challenges and costs will increase, managing or owning several aspects of hospitality can offer one with different opportunities to create success. That is why introduction of technology and its advancement in hospitality industry is of utmost importance (OConnor and Murphy, 2004). This presentation will focus on the hospitality industry technology associated with hotels. This system comes under lodging sector. Types The hospitality industry technology system comprises collection of elements with work collectively to offer information assist in the management and operations of hospitality organizations. The types of hospitality industry technology system includes information technology system, hospitality information processing, property management system, energy management system, call accounting systems, guest reservation systems, billing of guests, security, guest convenience and comfort, internet and video games, marketing, sales, catering, front of the house systems in hotels and restaurants, point of sale system, product management, back of the house system and beverage management (Zhu and Yao, 2011). Out of these systems it can be said that mainly six technology trends are revolutionizing the hospitality industry. These are: SaaS or software as a service, mobility, social, personalized systems, integration and globalization (Law et al., 2012). Information Technology Hotel reservations and inventory can be supervised mainly by two systems: a central reservation processor and a property management system (Karadkar and Trace, 2013). The CRP possibly works in accordance with local reservation system. Mostly, in the large hotel networks, the CRP works simply as a message switch to detour the requests for customer reservation that might have endure either an airline CRS or hotel telephone reservation centre or from individual properties in chain (Ferdousi and Reza Khan, 2013). This does not work as a storehouse for record. This is preserved more willingly than at a central point, all through the different possessions in the hotel network and hence can be inferred in a different way at every point. Disadvantage and Advantage Booking engines allow simple access by travel professionals and consumers. The systems allow individuals to easily book or make reservations and compare the costs. Many booking engines for example Orbitz and Expedia are obtainable through online interfaces (Khosrow-Pour, 2013). These types of booking engines incise costs by lessening call volume ad offer the client additional control over their procuring process. Internet has powerful impact on hospitality industry. For various locations and businesses, the experience initiates long before client arrives, initiates with the primary visit to the respective website, when a client checks location photos and gains a good judgment of what to anticipate. In hospitality business, efficient application of internet technologies can develop revenue. Social media, online advertising, blogs, websites, online ordering and information storehouse assist convince the clients to select a business or location (Kuwana, 2012). The main disadvantage with this technology can be failing to adopt innovative technologies and go along with it. Another disadvantage can be odd and long hours. This means if a client of a particular hotel does not like late finishes or early starts, then the industry may fail to help them. They may become late to assist that particular client deliberately. Future development Corporate sophistication: programs and policies need to be implemented efficiently to create, administer, manage and track direct business discount and hotel relationships. CRS domination: hotel chains should maintain sovereignty from CRS domination on different stages. They should free themselves of technologically lower positions engaged by most of the hotel reservation networks in order that management can correctly be practical rather than imprudent to incidents and must be stretchy to take specific actions to individual hotel businesses (Olsen and Zhao, 2004). Alternate delivery system: hotels need not to concentrate their distribution wholly on CRS channels or agency. Innovative reference technologies, like reservation systems or interactive videotext will extend in upcoming years as hotel chain reservation structures will put in main corporate users and attached to public information access networks (Speakman, 2005). Yield management: more progressive systems associated with hotel are developing yield management software at cost of numerous million dollars. It is vital to understand procuring dynamics and tackling final direct business cooperation, in addition to developing agency reduction deals. Conclusion One of the major trends in hospitality industry is globalization. In the 21st century, hotels will need to accept various different strategies to develop and survive amidst lofty levels of financial ambiguity. As global business and trade expand, no question is present on the fact that international connections will become further significant for the hotel industry. References Ferdousi, A. and Reza Khan, S. (2013). Hardware and Logic Implementation of Multiple Alarm System for GSM BTS Rooms.IJITMC, 1(4), pp.53-60. Karadkar, U. and Trace, C. (2013). Mobile device policies in archive reading rooms.Proc. Am. Soc. Info. Sci. Tech., 50(1), pp.1-3. Khosrow-Pour, M. (2013).Managing information resources and technology. Hershey, Pa.: IGI Global (701 E. Chocolate Avenue, Hershey, Pennsylvania, 17033, USA). Kuwana, T. (2012). Repetition advantage and disadvantage in perceptual identification tasks.Jpn Psychol Res, 55(3), pp.216-228. Law, R., Leung, D., Au, N. and Lee, H. (2012). Progress and Development of Information Technology in the Hospitality Industry: Evidence from Cornell Hospitality Quarterly.Cornell Hospitality Quarterly, 54(1), pp.10-24. Lee, L. (2013). Hospitality Industry Web-Based Self-Service Technology Adoption Model: A Cross-Cultural Perspective.Journal of Hospitality Tourism Research. OConnor, P. and Murphy, J. (2004). Research on information technology in the hospitality industry.International Journal of Hospitality Management, 23(5), pp.473-484. Olsen, M. and Zhao, J. (2004). Industry change, environmental scanning and firm strategy: how is the hospitality industry doing?.Tourism and Hospitality Planning Development, 1(1), pp.13-18. Speakman, C. (2005). Tourism and transport: Future prospects.Tourism and Hospitality Planning Development, 2(2), pp.129-135. Zhu, X. and Yao, Q. (2011). Logistics system design for biomass-to-bioenergy industry with multiple types of feedstocks.Bioresource Technology, 102(23), pp.10936-10945.

The Evolution of American Isolationism

The Evolution of American Isolationism â€Å"Isolationism† is a government policy or doctrine of taking no role in the affairs of other nations. A government’s policy of isolationism, which that government may or may not officially acknowledge, is characterized by a reluctance or refusal to enter into treaties, alliances, trade commitments, or other international agreements. Supporters of isolationism, known as â€Å"isolationists,† argue that it allows the nation to devote all of its resources and efforts to its own advancement by remaining at peace and avoiding binding responsibilities to other nations. American Isolationism While it has been practiced to some degree in U.S. foreign policy since before the War for Independence, isolationism in the United States has never been about a total avoidance of the rest of the world. Only a handful of American isolationists advocated the complete removal of the nation from the world stage. Instead, most American isolationists have pushed for the avoidance of the nation’s involvement in what Thomas Jefferson called â€Å"entangling alliances.† Instead, U.S. isolationists have held that America could and should use its wide-ranging influence and economic strength to encourage the ideals of freedom and democracy in other nations by means of negotiation rather than warfare. Isolationism refers to Americas longstanding reluctance to become involved in European alliances and wars. Isolationists held the view that Americas perspective on the world was different from that of European societies and that America could advance the cause of freedom and democracy by means other than war. American Isolationism Born in the Colonial Period Isolationist feelings in America dates back to the colonial period. The last thing many American colonists wanted was any continued involvement with the European governments that had denied them religious and economic freedom and kept them enmeshed in wars. Indeed, they took comfort in the fact that they were now effectively â€Å"isolated† from Europe by the vastness of the Atlantic Ocean. Despite an eventual alliance with France during the War for Independence, the basis of American isolationism can is found in Thomas Paine’s famed paper Common Sense, published in 1776. Paine’s impassioned arguments against foreign alliances drove the delegates to the Continental Congress to oppose the alliance with France until it became obvious that the revolution would be lost without it.   Twenty years and an independent nation later, President George Washington memorably spelled out the intent of American isolationism in his Farewell Address: â€Å"The great rule of conduct for us, in regard to foreign nations, is in extending our commercial relations, to have with them as little political connection as possible. Europe has a set of primary interests, which to us have none, or a very remote relation. Hence she must be engaged in frequent controversies the causes of which are essentially foreign to our concerns. Hence, therefore, it must be unwise in us to implicate ourselves, by artificial ties, in the ordinary vicissitudes of her politics, or the ordinary combinations and collisions of her friendships or enmities.† Washington’s opinions of isolationism were widely accepted. As a result of his Neutrality Proclamation of 1793, the U.S. dissolved its alliance with France. And in 1801, the nation’s third president, Thomas Jefferson, in his inaugural address, summed up American isolationism as a doctrine of peace, commerce, and honest friendship with all nations, entangling alliances with none†¦Ã¢â‚¬ Ã‚   The 19th Century: The Decline of US Isolationism Through the first half of the 19th century, America managed to maintain its political isolation despite its rapid industrial and economic growth and status as a world power. Historians again suggest that the nation’s geographical isolation from Europe continued to allow the U.S. to avoid the â€Å"entangling alliances† feared by the Founding Fathers. Without abandoning its policy of limited isolationism, the United States expanded its own borders from coast-to-coast and began creating territorial empires in the Pacific and the  Caribbean during the 1800s. Without forming binding alliances with Europe or any of the nations involved, the U.S. fought three wars: the War of 1812, the Mexican War, and the Spanish-American War. In 1823, the Monroe Doctrine boldly declared that the United States would consider the colonization of any independent nation in North or South America by a European nation to be an act of war. In delivering the historic decree, President James Monroe voiced the isolationist view, stating, â€Å"In the wars of the European powers, in matters relating to themselves, we have never taken part, nor does it comport with our policy, so to do.† But by the mid-1800s, a combination of world events began to test the resolve of American isolationists: The expansion of the German and Japanese military industrial empires that would eventually immerse the United States in two world wars had begun.Though short-lived, the occupation of the Philippines by the United States during the Spanish-American war had inserted American interests into the Western Pacific islands - an area generally considered to be part of Japan’s sphere of influence.Steamships, undersea communications cables, and radio enhanced America’s stature in world trade, but at the same time, brought her closer to her potential enemies. Within the United States itself, as industrialized mega-cities grew, small-town rural America - long the source of isolationist feelings - shrank. The 20th Century: The End of US Isolationism   World War I (1914 to 1919) Though actual battle never touched her shores, America’s participation in World War I marked the nation’s first departure from its historic isolationist policy. During the conflict, the United States entered into binding alliances with the United Kingdom, France, Russia, Italy, Belgium, and Serbia to oppose the Central Powers of Austria-Hungary, Germany, Bulgaria, and the Ottoman Empire. However, after the war, the United States returned to its isolationist roots by immediately ending all of its war-related European commitments. Against the recommendation of President Woodrow Wilson, the U.S. Senate rejected the war-ending Treaty of Versailles, because it would have required the U.S. to join the League of Nations. As America struggled through the Great Depression from 1929 to 1941, the nation’s foreign affairs took a back seat to economic survival. To protect U.S. manufacturers from foreign competition, the government imposed high tariffs on imported goods. World War I also brought an end to America’s historically open attitude toward immigration. Between the pre-war years of 1900 and 1920, the nation had admitted over 14.5 million immigrants. After the passage of the Immigration Act of 1917, fewer than 150,000 new immigrants had been allowed to enter the U.S. by 1929. The law restricted the immigration of â€Å"undesirables† from other countries, including â€Å"idiots, imbeciles, epileptics, alcoholics, poor, criminals, beggars, any person suffering attacks of insanity†¦Ã¢â‚¬  World War II (1939 to 1945) While avoiding the conflict until 1941, World War II marked a turning point for American isolationism. As Germany and Italy swept through Europe and North Africa, and Japan began taking over Eastern Asia, many Americans started to fear that the Axis powers might invade the Western Hemisphere next. By the end of 1940, American public opinion had started to shift in favor of using U.S. military forces to help defeat the Axis.   Still, nearly one million Americans supported the America First Committee, organized in 1940 to oppose the nation’s involvement in the war. Despite pressure from isolationists, President Franklin D. Roosevelt proceeded with his administration’s plans to assist the nations targeted by the Axis in ways not requiring direct military intervention. Even in the face of Axis successes, a majority of Americans continued to oppose actual U.S. military intervention. That all changed on the morning of December 7, 1941, when naval forces of Japan launched a sneak attack on the U.S. naval base at Pearl Harbor, Hawaii. On December 8, 1941, America declared war on Japan. Two days later, the America First Committee disbanded.   After World War II, the United States helped establish and became a charter member of the United Nations in October 1945. At the same time, the emerging threat posed by Russia under Joseph Stalin and the specter of communism that would soon result in the Cold War effectively lowered the curtain on the golden age of American isolationism. War on Terror: A Rebirth of Isolationism? While the terrorist attacks of Sept 11, 2001, initially spawned a spirit of nationalism unseen in America since World War II, the ensuing War on Terror may have resulted in the return  of American isolationism. Wars in Afghanistan and Iraq claimed thousands of American lives. At home, Americans fretted through a slow and fragile recovery from a Great Recession many economists compared to the Great Depression of 1929. Suffering from war abroad and a failing economy at home, America found itself in a situation very much like that of the late  1940s when isolationist feelings prevailed. Now as the threat of another war in Syria looms, a growing number of Americans, including some policymakers, are questioning the wisdom of further U.S. involvement. â€Å"We are not the world’s policeman, nor its judge and jury,† stated U.S. Rep. Alan Grayson (D-Florida) joining a bipartisan group of lawmakers arguing against U.S. military intervention in Syria. â€Å"Our own needs in America are great, and they come first.† In his first major speech after winning the 2016 presidential election, President-Elect Donald Trump expressed the isolationist ideology that became one of his campaign slogans - â€Å"America first.† â€Å"There is no global anthem, no global currency, no certificate of global citizenship,† Mr. Trump  said on December 1, 2016. â€Å"We pledge allegiance to one flag, and that flag is the American flag. From now on, its going to be America first. In their words, Rep. Grayson, a progressive Democrat, and President-Elect Trump, a conservative Republican, may have announced the rebirth of American isolationism.

Gallons to Liters - Unit Conversion Example Problem

Gallons to Liters Problem This example problem demonstrates how to convert gallons to liters. Gallons and liters are two common units of volume. The liter is the metric volume unit, while the gallon is the English unit. However, the American gallon and the British gallon are not the same!  The gallon used in the United States  is equal to exactly 231 cubic inches or 3.785411784 liters. The  Imperial  gallon or UK gallon is equal to approximately 277.42 cubic inches. If youre asked to perform the conversion, make sure you know which country its for or you wont get the correct answer. This example uses the American gallon, but the set-up for the problem works the same for the Imperial gallon (just using 277.42 instead of 3.785). Key Takeaways: Gallons to Liters The unit conversion between (American) gallons and liters is 1 gallon 3.785 liters.British and American gallons are not the same. The American gallon is a smaller unit of volume and has a different conversion factor.There are about four liters per gallon. Gallons to Liters Problem What is the volume of a 5 gallon bucket in liters? Solution 1 gallon 3.785 liters Set up the conversion so the desired unit will be cancelled out. In this case, we want liters to be the remaining unit. volume in L (volume in gal) x (3.785 L/1 gal) volume in L (5 x 3.785) L volume in L 18.925 L In other word, there are about 4x more liters when you convert from gallons. Answer A 5 gallon bucket contains 18.925 liters. Liters to Gallon Conversion You can use the same conversion factor to convert liters to gallons or you can use: 1 liter 0.264 US gallons To find how many gallons are in 4 liters, for example: gallons 4 liters x 0.264 gallons/liter The liters cancel out, leaving the gallon unit: 4 liters 1.056 gallons Keep this in mind: there are about 4 liters per US gallon.

Qatar and Bahrain Paper Research Example | Topics and Well Written Essays - 1750 words

Qatar and Bahrain - Research Paper Example The British had defined the national borders, but they did not demarcate most of these boundaries properly, which left prospects for conflict, particularly in regions that had the most expensive deposits of oil. In the Gulf, British- controlled forces saw to it that there was peace and order, and British officers settled local disputes. Nevertheless, this was not until the year 1971 when these influences as well as officials withdrew, resulting in the inception of suppressed ethnic hostilities as well as old territorial claims. The impetuous significance of boundaries in defining oil deposits’ ownership as well as the notion of the modern state that the European supremacy pioneered into the Gulf States stirred up heightened territorial disagreements (Library of Congress Country Studies, 1993). Introduction Boundary problems comprise one of a succession of dilemmas in the region of the Arabian Gulf. Moreover, they mirror tensions in the region. Amongst these problems, the confl icts between Qatari and Bahraini were the most serious. The source of this clash dates back to the nineteenth century when Great Britain fully controlled the Arabian Peninsula’s eastern region. This dispute affected the relationship between Qatar and Bahrain as well as threatened Gulf Cooperation Council’s existence (Karam, 2007). ... It has severally made them want to fight, and it has been an enduring problem not only for both emirates’ British protectorate but also for Saudi Arabia and Gulf Cooperation Council, endeavoring to maintain peace in the region (Theestimate.com, 2001). Although both parties concur with the fact that in the 18th century (prior to ousting the Iranians from Bahrain), the Arab clan of the Al Khalifa had inhabited Al Zubarah and that they inhabited Bahrain some years afterward, they differ regarding the prevailing subsequent legal circumstances. The Al Thani, Qatar’s ruling family, disputed strongly the claim by Al Khalifa to the ancient area of settlement presently in the hands of the Qatari over and above laying claim to the Hawar (inhabited by Bahraini) and neighboring islands, very close to Qatar mainland but over 20Kms from Bahrain (U.S. Department of State, 2012). According to Qatar, in the year 1937, Bahrain illegally and clandestinely occupied the Islands of Hawar. On the other hand, Bahrain insists that its leader was only carrying out legitimate works of exercising control in his own region. Qatar’s Ruler presented the British Government with protests through a letter dated May  10, 1938. He was protesting against what he referred to as Bahrain’s irregular action against Qatar and earlier in February  1938, he had already referred to this issue in Doha where he had a talk with the Political Agent to Britain in Bahrain. The British Political Agent later wrote Qatar’s Ruler on 20  May the same year, asking him to express his case on Hawar as soon as possible. The latter wrote back on 27  May  1938 and on 3  January  1939, Bahrain presented a counter-claim. Qatar’s Ruler then presented the British Political Agent with his

Determinants of Elasticity Assignment Example | Topics and Well Written Essays - 250 words

Determinants of Elasticity - Assignment Example At the other hand, the focus of this document points out towards the growth in the prices of mattresses, sofas and beds, throughout the world. Rest is one of the basic human needs for sustainable existence (Mei-Se, Shu-Jung, & Hung-Ta, 2009), therefore people are forced to cope with rising prices of this important need, through forgoing other important desires. Mattresses and luxury sofa sets were luxuries during the course of past two decades, but in this modern era, they transformed into necessities for families to maintain their status symbol. At the same time, there is no suitable substitute available for them; along with this, there is a growing social pressure to acquire good to excellent quality sofa sets and mattresses to keep up with the changing trends. Therefore, it is wise to imply that, the demand of mattresses and other similar social necessities is not affected by the change in price largely. In parallel, it is recommended to the governments to provide firms producing these items with subsidies in order to, stabilize prices of their products, so that people can fulfill other desires as well. This paper focused on analyzing the price elasticity of necessities of human life, and painfully noticed that despite of their increasing prices, people are purchasing them. Therefore, governmental intervention is recommended in order to; control inflating price of mattresses and other similar

The Cobb Douglas Function

The Cobb Douglas Function This chapter will discuss the estimated techniques theories and the equation, it is include the Unit root test and Autoregressive Distributed Lag (ARDL) Bounds test. And the data sources also discuss in this part. 3.1 Endogenous growth theory and modeling In the economic condition, the Cobb-Douglas functional form of production functions is commonly used to represent the relationship of an output to inputs. It was predictable by Knut Wicksell (1851-1926) and tested against statistical evidence by Charles Cobb and Paul Douglas in the years of 1900-1928. The production function is shown as below: Y = ALÃŽÂ ±KÃŽÂ ², (1) Where the symbol of transformation for the Cobb-Douglas function is: = Total production (the monetary value of all goods produced in a year) = Labor input = Capital input = Total productivity growth The and are the output elasticity of labor and capital simultaneously. These values are constant determined by available technology. For output eleasticity the receptiveness of output to a change in levels of both labor and capital used in production in the condition of ceteris paribus. Such as if =0.20, it will show that the 1% increase in labor will lead to a 0.2% increase in output. ÃŽÂ ± + ÃŽÂ ² = 1, These function indicate that the constant return to scale in production function. That means if L and K are each increase 30%, Y will increase in 30% too. If the return to scale are decreasing and return to scale are increasing, this will be show as below: Expect it on the perfect competition, the and can be indicate to be the both labor and capital share of output. The Cobb-Douglas function are influnced by statistical evidence that come into sight to show that labor and capital shares of total output are constant over time in developed countries, the researchers clarified this by statistical fitting least squares regression in their production function. It is show that having doubt over whether constancy over time exists. But according to Yao and Wei (2007), through joint ventures local firms have been able to imitate foreign technologies and started to produce their own models or supply parts to foreign industries. There is no doubt that FDI has not only helped improve the production efficiency of domestic firms but also helped to push Koreas production frontier towards the worlds most advanced levels. Assume that there are two countries in the world: one is an industrialized economy A and the other is a newly industrializing economy (B) and both countries will follow a Cobb-Douglas production technology: (2) Where Y, K, L are respectively to GDP, capital and labor, j and t denote country (A, B) and time. And g(z) is a function of various factors affecting production efficiency and the production frontier, including exports, human capital, FDI, institutions and others. As country A is richer and has a higher K/L ratio than country B, country A tends to make investments in B in order to maximize returns to capital, as long as à ¢Ã‹â€ Ã¢â‚¬Å¡YBt /à ¢Ã‹â€ Ã¢â‚¬Å¡KBt > à ¢Ã‹â€ Ã¢â‚¬Å¡YAt /à ¢Ã‹â€ Ã¢â‚¬Å¡KAt holds true. According to Yao and Wei (2007), in this two-country perspective, both countries should have mutual benefits for cross-border movement of capital to take place. The benefit for A is that it can maximize returns to its capital and has access to Bs market. The benefit for B is that it can have access to As technology and improve per capita income so that the income gap between A and B declines over time. Another assumption is that both countries invest in science and technology to create knowledge and innovation. However, because A has better endowments in both physical and human capital, it is more able to innovate and hence produce a higher level of output given the same level of inputs in comparison with B. The only way for B to decrease this technological gap is through importation of As technology embedded through FDI. But again from according Yao and Wei (2007) that the role of FDI can recommend by their two propositions. Firstly, they given the same steady state of Bs technology, FDI can improve Bs production efficiency because foreign invested firms are front runners in the adoption of GPTs because of their superior human capital, management and organizational structure. Domestic firms can be trained from foreign invested firms through learning by watching. They also have incentives to become more proficient and competitive because they fear losing out to foreign invested firms. The moving effect of FDI on production efficiency of B can be illustrated in Figure 1. Production frontier of A and B, denotes the production frontier of B. At a steady state when input is fixed at X0, the actual level of domestic production is Yd0 without the effect of FDI. If FDI has a positive impact on production efficiency at this steady state, or à ¢Ã‹â€ Ã¢â‚¬Å¡YB/à ¢Ã‹â€ Ã¢â‚¬Å¡FDIB > 0, the actual level of production will rise to Yf 0. The net moving effect of FDI on country Bs production is (Yf 0 à ¢Ã‹â€ Ã¢â‚¬â„¢ Yd0). Second proposition examine that FDI is a shifter of the domestic production frontier. If FDI does not have a shifting effect, the maximum output of B can never go above PFB. If FDI has a shifting effect, country Bs maximum potential output can be as high as those located on PFA, which is the production frontier of A. (Cobb-Douglas. Wikipedia. Retrieved April 20, 2010, from: http://en.wikipedia.org/wiki/Cobb%E2%80%93Douglas) Figure 3.1: Production Frontier of A and B and the role of FDI in B. Y PFA Yft PFB Ydt Yf0 Yd0 0 X0 X1 X For example, without a shifting effect, the actual level of production may move from Yf 0 at the initial steady state to Ydt at the new steady state with a new input mix Xt. The maximum possible output of B at the new level of input will be on PFB or below. If FDI has a shifting effect, the actual level of output can go above PFB, with a maximum potential output to be on PFA. In Fig. 1, if the new actual output is Yf t , which is situated between the two frontiers, it means that the production frontier of B has been shifted towards PFA from PFB. This positive shifting effect can be expressed as à ¢Ã‹â€ Ã¢â‚¬Å¡YB/à ¢Ã‹â€ Ã¢â‚¬Å¡FDI = f (t)>0, implying that the marginal product of FDI is an increasing function of time (Yao and Wei, 2007). According to Yao and Wei (2007) indicate that with Propositions 1 and 2, country Bs production function can be rewritten as: (3) And FDI is part of the multiplier ABt along with a set of other variables Z1 which can also improve production efficiency. Besides, FDI enters the residual term to be a shifter of the production frontier along with other variables, including a time trend t , which captures the Hicks neutral technological progress in B in the absence of FDI or foreign technologies, t * FDI captures the additional technological progress that is attributed only to FDI. The total effect of FDI on economic growth in country B can be expressed as: (4) The first part on the right-hand side of (4) measures the moving effect, and the second part the shifting effect of FDI on YB. If both effects are positive and significant, the above two propositions hold true. While the traditional growth theory considered only two factors of production, namely capital and labor, this new growth theory adds a third, technology. Endogenous growth theory or new growth theory focuses on the wider concept of technology, which is expressed through ideas, instead of objects or products. It necessitates a different set of institutional arrangements, like pricing systems, taxation or incentives to ensure the efficient allocation of ideas. These types of models are sometimes called Schumpeterian models because Schumpeter emphasized the importance of temporary monopolistic power over discoveries, as a motivating force for continued innovative process. A great deal of evidence has been produced in recent years casting doubt on endogenous growth theory. Mankiw, Romer and Weil (1992) argue that the neoclassical growth model of Solow and Swan with exogenous technological progress and diminishing returns to capital, explains most of the cross-country variation in output per person. The Schumpeterian variant of endogenous growth theory that emphasizes technological progress, innovation and RD has come under particularly heavy fire. Endogenous growth models attempt to explain a greater proportion of observed growth as well as why different countries experience different growth rates. They generally use the neoclassical model but allow the production function to exhibit increasing returns to scale, focus on externalities and assume that technological change, although important, is not necessary to explain long-run growth. In 1986, paper of Romer ignores physical capital and only considers knowledge but a general form of his model can be written as: Y = A(R) F (Rj, Kj, Lj) (5) Where R j, K j and L j are, respectively, stock results from research and development expenditure by firm j, physical capital of firm j and labor of firm j; R is the aggregate stock of knowledge. Any private research effort will have a spillover effect for the public stock of knowledge A(R). This type of model can explain why countries experience different growth rates. A country with an initial higher level of K experiences a higher rate of growth of K leading to a higher rate of growth of per capita income because such a country is more experienced through learning by doing. This is an external effect that prevents diminishing returns. 3.2 Model specification The previous empirical studies have proved that GDP can be determined by the following variables: labor and capital as basic physical inputs; export, FDI and foreign exchange rate policy as variables of openness. The following model regression will include all these variables. (6) Where t (t = 1976, , 2008) denote year t, k and l capital stock (Gross fixed capital accumulation) and total labor force, fdi = FDI inflow, exp = total export and exc = real exchange rate. Lastly, the Y is the Gross domestic product in economic growth and the is error term. Data for GDP are gross domestic product and capital is calibrated below based on investment in fixed assets. All the variables are calculated in 2000 constant prices. GDP is derived from real GDP annual indexes by province. Labor is total labor force in each province. FDI is actually used FDI inflows. Export is the total value of exports. The description of FDI in the production model needs careful consideration. Because capital stock is the accumulation of fixed asset investment, which includes both domestic and foreign investments, the production function would be mis-specified if FDI, either measured as a flow or stock, were added as another explanatory variable along with capital stock. In the previous literature, export and exchange rate also has been found to be relevant variables in the production function. Like FDI, export is defined as total FDI inflows and total export in Korea therefore can effect to output. The values of exports and FDI are provided in US dollars (USD) in the official statistics. Since they are measured in US dollars, most economic analysts do not bother to deflate the values in current prices into values in constant prices (e.g. Liu et al., 1997; Liu, 2000). It is important to conduct an appropriate deflation. One relevant deflator is the US consumer price index. The values of trade and FDI in nominal dollars are deflated by this index. Since all the other variables in the model are measured in KRW100, it is useful to change these two variables in KRW as well. Exchange rate is real exchange rate, which is time-variant but location-invariant as all the provinces faced the same foreign exchange rate. Beside this, real exchange rate should be derived from the exchange rates and price indexes of Koreas main trading partners. However, since KRW follows the US dollar very closely, albeit not pegged to the dollar, only the dollar exchange rate and the US price index are used to calculate the real exchange rate. Real exchange rate is expected to have a positive sign influence on economic growth because it represents Chinas competitiveness in international trade and the extent of market liberalization in the foreign exchange market from Yao and Zhang (2001). The expectation result for the variable of capital stock, labor, human capital, FDI, export and real exchange rate are expect getting the significant and positive relationship to economic growth. 3.3 Empirical methodology 3.3.1 Unit root test A unit root test is vital in observing the stationery of time series data. It is main to estimate about the variables observed have a tendency to return to the long term trend follow a shock (stationery) or the variables follow a random walk which containing a unit root. If the variables follow a random walk after a temporary or permanent shock, the regression between variables is spurious (Amiruddin, Nor and Ismail 2007). According to the Grauss-Markovs theorem, in such cases, the series do not have a finite variance. Hence the OLS will not produce consistent parameter estimates. A stationary series is one whose basic properties, for example it mean and its variance, do not change it over time. In contrast, a non-stationary series has one or more basic properties that do change over time. If the time series variable is stationery, i) The mean of is constant over time ii) The variance of is constant over time iii) The simple correlation coefficient between and depends on the length of the lag (k) but on no other variable (for all k). The unit root test can separate into 2 test, that is Augmented Dickey Fuller (ADF) test and Phillips Perron (PP) test. This will test for level (original series), first differences and second differences (changes). If stationary at level, then the series are integrated of order zero, I(0) and if stationary at first differences and second differences, the series are integrated of order one and two, I(1) and I(2) respectively. The Augmented Dickey-Fuller test statistic and Phillips-Perron test statistic to estimate the stationary for the variables. The results are and the hypothesis will indicate as below: Hypothesis: Ho: No stationary Ha: Stationary Hence, p-value should small tahan 0.05, then rejected Ho, that is stationary, if failure to reject Ho, that means no stationary]. 3.3.2 Autoregressive distributed lag (ARDL)-Bound test The Bound Testing Method can use to estimate the small size sample data in between 30 observations. Therefore, one of the conditions is the dependent variables must be in I(1) and the dependent variables can be mixed in I(0) and I(1), but not the I(2). For example: Y=a+b1X1+b2X2+b3X3+e. The variable Y must stationary at order one or I(1) and the X1,X2 and X3 can be in I(0) or I(1) or mixed. For the simplicity, the Bound testing can be shown as: (7) The Autoregressive Distributed Lag (ARDL) method developed by Pesaran et al. (2001) was used to establish co-integration relationships among the variables. And it can use to overcome the stationary problem in the time-series regression. The advantage of the ARDL method is it can be applied to the model whether the independent variables are stationary at I (0) or I (1). The dependent variable must stationary in I (1). As a result, a dynamic model known as the Autoregressive Distributed lag model (ARDL) will be estimated and can be written as: (8) This equation shows that output growth is effects by values of explanatory variables as well as the lagged dependent and explanatory variables. The bound test used the conventional F-test compare to the critical value to detect the presence of co-integrating relationship. The critical value is base on the Narayan (2005) table of critical values for the bounds test case III: Unrestricted intercept and no trend. If the F-test is higher than the upper bound critical value, the hypothesis of no-co-integration is rejected. Beside this, if an F-statistic is lower than the lower bound critical value implies that the absences of the co-integration. If the F-statistic is in between the lower bound and upper bound, there is no clear indication of the absence or existence of co-integration relationship. Using Wald test to investigate the joint hypothesis is, Ho: Ha: The conclusion for the hypothesis can be separate to three part, that is: i) If the Wald F-statistic fall above the upper critical value- cointegration exists. ii) If the Wald F-statistic falls down between the lower bound and upper bound critical value- inconclusive. iii) If the Wald F-statistic falls below the lower bound critical value-no cointegration exists. Furthermore, an Error Correlation Model (ECM) also use with the Bound test, the form is: (9) Where, : 1-L is the difference operator : f(yt,xt) trend: trend term : long run multiplier Therefore, from the ARDL model, we can use the Bewleys (1979) regression approach to obtain the long run model. (i=1,2,à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦,k) (10) Where, and , i= 1,2,à ¢Ã¢â€š ¬Ã‚ ¦Ãƒ ¢Ã¢â€š ¬Ã‚ ¦, k are the selected (estimated) values of and , i=1,2,à ¢Ã¢â€š ¬Ã‚ ¦..,k. However, the short run dynamic model is estimated base on the Unrestricted Error Correction Model (UECM) model. (11) Where ECT represents as a long run steady point or partial adjustment term as below: (12) And using the Wald test to compute the long run elasticities and it standard error is: 1-Sum of the dependent coefficients= Sum of the independent coefficients (13) 3.4 Data The secondary data set consists of the annually data of the Korea economy for the period of 1976 to 2008 obtained from World Bank database, UC Atlas of Global Inequality, International Monetary Fund (IMF), International Financial Statistic (IFS), Korea National Statistical and United Nations Conference on Trade and Development (UNCTAD). Since the ultimate goal is to perform regression analysis with the data expressed in natural logarithms, it may instead wish to work with the log and proxy for variable as below: CHAPTER 4 REGRESSION RESULTS 4.0 Introduction Augmented Dickey Fuller (ADF) test and Phillips Perron (PP) test and Autoregressive Distributed Lag (ARDL). 4.1 Unit root test In this study, two stationary tests on individual stochastic trend are conducted, that is Augmented Dickey Fuller (ADF) and Phillip-Perron (PP) tests which have been used frequently I time series data. The value of ADF t-statistic and PP z-statistic will be compared to the critical value given by MacKinnon (1991). The time series under consideration should be integrated in the same order before we can proceed to cointegration analysis and causality test. The result can be show as below: 4.1.1 Augmented Dickey Fuller (ADF) test Based on the result as below Table 4.1.1, it show that result for Augmented Dickey-Fuller test statistic in Unit Root test. This test is function to know the stationary of data for variable. In the result, the dependent variable and all explanatory variables are significant on the first and second differences for the constant with trends and constant without trends. This is because the p-value is small than 0.05 at significant level. So, we will rejected Ho and conclude that the data is stationary when first difference. Therefore, all series are I(1) process. Variable Level First Differences Constant with trends Constant without trends Constant with trends Constant without trends t-stat p-value t-stat p-value t-stat p-value t-stat p-value Economic growth (y) -2.070027(0) 0.5421 2.327602(0) 0.9999 -5.756136*(0) 0.0003 -4.782721*(0) 0.0006 Capital stock (k) -1.911924(0) 0.6251 -0.546014(0) 0.8689 -4.515321*(1) 0.0060 -4.361648*(0) 0.0017 Labor force (l) -0.459604(0) 0.9804 -1.009485(0) 0.6241 -4.564489*(0) 0.0051 -4.425029*(0) 0.0014 FDI (fdi) -4.190134(1) 0.0125 -1.009485(3) 0.7363 -2.892944*(8) 0.1825 -6.300895*(2) 0.0000 Export (exp) 2.708182(0) 1.0000 5.784347(0) 1.0000 -3.567930*(0) 0.0495 -2.184710(0) 0.2155 Real exchange rate (exc) -2.246001(0) 0.4496 -1.594207(0) 0.4739 -5.035710*(0) 0.0016 -5.101766*(0) 0.0002 Table 4.1.1: Result Augmented Dickey-Fuller (ADF) test Criteria: Schwarz Info Criterion (SIC) Variable Level First Differences Constant with trends Constant without trends Constant with trends Constant without trends t-stat p-value t-stat p-value t-stat p-value t-stat p-value Economic growth (y) -2.815698(18) 0.2023 3.136859(7) 1.0000 -6.399643*(11) 0.0000 -4.778071*(1) 0.0006 Capital stock (k) -2.096298(2) 0.5282 -0.519748(5) 0.8745 -4.100869*(7) 0.0153 -4.204347*(7) 0.0026 Labor force (l) -0.631981(1) 0.9699 -1.228256(1) 0.6498 -4.564489*(0) 0.0051 -4.423468*(1) 0.0014 FDI (fdi) -1.392163(31) 0.8440 -1.577055(31) 0.4824 -4.828185*(12) 0.0027 -5.032975*(13) 0.0003 Export (exp) 4.407935(8) 1.0000 6.050077(5) 1.0000 -3.555909*(1) 0.0507 -2.042327(1) 0.2683 Real exchange rate (exc) -2.374756(1) 0.3848 -1.615847(1) 0.4631 -4.981815*(3) 0.0018 -5.068019*(2) 0.0003Note: The number in parenthesis are lag length. The test employ a null hypothesis of a unit root. All series are log transformed. *Indicate that 5% at significant level. Table 4.1.2: Result Phillips-Perron (PP) test Criteria: Schwarz Info Criterion (SIC) Note: The number in parenthesis are lag length. The test employ a null hypothesis of a unit root. All series are log transformed. *Indicate that 5% at significant level. 4.1.2 Phillips-Perron (PP) test Based on the result as above Table 4.1.2, it show that result for Phillips-Perron (PP) test statistic in Unit Root test. This test is function to know the stationary of data for variable. In the result, the dependent variable and all explanatory variables are significant on the first and second differences for the constant with trends and constant without trends. This is because the p-value is small than 0.05 at significant level. So, we will rejected Ho and conclude that the data is stationary when first difference from the result of PP test. Therefore, all variables are integrated of order I(1). 4.2 Autoregressive Distributed Lag (ARDL) test The condition of the bound testing is the dependent variable must be in I(1) and the independent variables can be mixed in I(0) and I(1). The y is I(1) and the independent variable is mixed in I(0) and I(1)., the estimation of co-integration can be done by using the Autoregressive Distributed Lag (ARDL). The Bound test technique is applied to examine the long run relationship between the exchange rate and its determinants. The result of the estimated ARDL model for Malaysia is reported as Table 4.2. The goodness of fit of the model (adjusted R-squared (Adjusted-R2)) and the standard error of regression are higher. Based on the table 4.2, includes the diagnostic tests used to confirm the validity of the model. These several important diagnostic test has been carry out in order to strengthen the accuracy of the results. The result of the diagnostic test indicated that the residual of the model is normally distributed. Beside this, there are no heteroskedasticitity and no serial correlation. However, the model successes to pass the Ramsey RESET test. Since all the probability is larger than 0.05 (5%) significant level. Thus, hypothesis failed to reject the Ho, hence there are absence of those problem in the model carried out. Note: The critical values are cited from Narayan(2005).(Table case III: Unrestricted intercept and no trend;pg1988). *,**and *** denote significant at 10%,5% and 1% significance level, respectively. Based on the Table 4.3, the results of bound cointegration test obviously demonstrated that the null hypothesis is, against the alternative hypothesis is easily rejected at 1% significant level. The model shows that the determinant variables are strongly cointegrated with economic growth in Korea. The result showed that the F-statistic compute by Wald test is highly significant at 1% significance level. The F-statistic is 8.742069, which is greater than the upper critical bound value of 6.040, so it is showed that cointegration exists. Hence, based on the test result, there exist cointegration or long run relationship among the economic growth, capital stock, labor, foreign direct investment, export and real exchange rate. (14) Based on the Table 4.4 reported the long run elasticity between the variables use the ARDL test. The expected sign of the variables are indicate in this table and the estimated coefficient for capital stock (k) is positive 0.764333 and has consistent sign with the expected sign. This implies that an increase in the capital stock by 1 billion US Dollar (US$), the gross domestic product (GDP) will increase 0.764333 billion US Dollar (US$). The standard error is 1.594101 and probability 0.6359 is the p-value in the model. For the labor force (l), the estimated coefficient is positive sign, it is 25318.75 and which is consistent with the expected sign. The coefficient means that when 1 unit labor force increase, the GDP will increase 25318.75 US Dollar (US$). The probability is 0.4858 and standard error is 35765.61. In addition, the foreign direct investment (fdi) in estimated coefficient is positive 5.627353 and same with the expected sign. This indicate that when increase 1 billion US Dollar (US$) in the foreign direct investment, the GDP will increase 5.627353 billion US Dollar (US$). The p-value is 0.4313 and standard error is 7.032203. The estimated coefficient for export (exp) is positive 0.798721, it has consistent sign with the expected sign. This implies that an increase 1 billion US Dollar (US$) in export, the GDP will increase 0.798721 billion US Dollar (US$). The standard error for export is 0.204665 and the probability is 0.0007. In the case of real exchange rate (exc), the estimated coefficient is positive 173672187.2 and is similar with the expected sign. The coefficient means that when real exchange rate increase in 1 units of Korea Won 100 (KRW100) per US$ 1, the GDP will leads to increase in 173672187.2 US Dollar (US$). The p-value for real exchange rate is 0.1910 and standard error is 1.29E+18. 4.5 The Error Correction Model (ECM) test The result of the Error Correction Model is reported at Table 4.6 and the Error Correction Term (ECT) is shows as below: (15) So, the ECT equation will be generated into short run dynamic model. Based on the Table 4.5, the error correction term (ECT) is -0.090218. This implies that speed of adjustment to the long run stability is very slow which is 0.09. It is negative sign and rapid adjustment from a short term imbalance. The negative sign of the ECT means when there is a short run shocks occur, the gap is closed towards the adjustment process to the long run stability. This implies that the imbalance of output growth in the short run maybe adjusted with error corrections that resume the long term equilibrium. Approximately a high percentage of 89.7% of the gross domestic product can be clarify by the capital stock, labor, foreign direct investment, export and real exchange rate selected. Furthermore, the variable of capital stock (k) is significantly influence the gross domestic product (GDP/y) in the short run. The capital stock represents the gross fixed capital formation to be the most important factor that influences the gross domestic product in Korea. The capital stock, labor (l), foreign direct investment (fdi), export (exp) and real exchange rate (exc) is statistically positive influence in the current year of gross domestic product. As mentioned in literature review, this all explanatory variables should be elastic, portrays a positive sign and is should be a statistically variable in most of the research. In the short run, capital stock is statistically significant and positive sign to the gross domestic product for Korea. When capital stock is increase 1 billion US Dollar (US$), the gross domestic product will attracts approximately increase 1.249795 billion US Dollar (US$). Beside this, when the labor is increase 1 unit labor force, the gross domestic product will increase 2308.908 US Dollar (US$). And if the foreign direct investment increase 1 billion US Dollar (US$), the gross domestic product will increase 0.508124 billion US Dollar (US$). If export increase in 1 billion US Dollar (US$), gross domestic product will increase 0.072330 billion US Dollar (US$). Lastly, when the real exchange rate is increase in 1 units of Korea Won 100(KRW100) per US$ 1, the GDP will increase in 15708616 US Dollar (US$).

Financial Markets Test with Multiple Choice Questions Essay

Class Test 1 (Sample Items) Choose the most correct response. Record your answer on the mark sense sheet provided. Each answer is worth  ½ mark. QUESTION 1 All else equal, a binding price floor will cause less of a surplus if: (a)both supply and demand are inelastic (b)both supply and demand are elastic (c)supply is elastic, but demand is inelastic (d)supply is inelastic, but demand is elastic QUESTION 2 The figure shows the market for books before and after an excise tax is introduced. The tax on books is ________, buyers pay ______ of tax per book, and the governments tax revenue is ________ a week. (a) $0.40 a book; $0.40; $4 (b) $1.20 a book; $0.80; $128 (c) $0.80 a book; $1.20; $12 (d) $1.20 a book; $0.80; $12 QUESTION 3 If the minimum wage is set below the equilibrium wage rate, (a) a labour shortage occurs. (b) there is no change in the quantity of labour employed. (c) the short-run labour supply curve becomes more elastic. (d) a labour surplus occurs. QUESTION 4 If honey is measured on the vertical axis, and jam on the horizontal axis, the marginal rate of substitution: (a) is the rate at which the consumer has to give up honey if more jam is to be bought, given their relative prices. (b) is the rate at which the consumer has to give up jam if more honey is to be bought, given their relative prices. (c) is the rate at which the consumer is willing to give up honey in order to get more jam, and be as satisfied as he or she was before. (d) is the rate at which the consumer is willing to give up honey in order to get more jam and be better off than he or she was before. QUESTION 5 At the best affordable point: (a) the budget line intersects an indifference curve. (b) the marginal rate substitution of x for y is exactly equal to 1. (c) the marginal rate of substitution of x for y is equal to the relative price of x in terms of y (that is, ) (d) the difference between the marginal rate of substitution of x for y and the relative price of x is at a maximum. QUESTION 6 Stuart, who loves seafood, says, ‘I can’t really tell the difference between Sydney rock oysters and Pacific oysters. They taste equally delicious to me; I just buy a dozen of whichever is cheaper every week.’ In terms of marginal utility theory, Stuart thinks: (a) the marginal utility per dollar spent on Sydney rock oysters is equal to the marginal utility per dollar spent on Pacific oysters. (b) the marginal utility he gets from Sydney rock oysters is greater than that from Pacific oysters, but Pacific oysters are cheaper. (c) the marginal utility he gets from Pacific oysters is greater than that from Sydney rock oysters, but  Sydney rock oysters are cheaper. (d) the marginal utility he gets from Sydney rock oysters is equal to that from Pacific oysters, and so whichever oyster has a lower price gives him a higher marginal utility per dollar spent. QUESTION 7 According to the marginal utility theory of consumer choice, rational consumers will spend their money with the aim of: (a) maximizing the total utility they get from their limited income. (b) maximizing the marginal utility they get from each good. (c) equalizing the marginal utility they get from different goods. (d) maximizing the amount they save out of their limited income. QUESTION 8 A firm’s production function refers to: (a) the maximum quantity of output that it can produce within a given period. (b) the maximum revenue it can earn from various levels of output. (c) the maximum output that can be produced from various quantities of inputs. (d) the minimum cost of producing various levels of output. QUESTION 9 When marginal cost is rising, average total cost: (a) will necessarily be rising. (b) will necessarily be falling. (c) may be rising or falling, depending on whether marginal cost is greater or less than average total cost. (d) may be rising or falling, depending on whether marginal cost is greater or less than average variable cost. QUESTION 10 Which of the following reflects the law of diminishing marginal rate of substitution? As we continually increase labour one unit at a time, (a) the addition to output will become larger, if capital is held constant. (b) the addition to output will become smaller, if capital is held constant. (c) larger reductions in capital will be required to keep output constant. (d) smaller reductions in capital will be required to keep output constant. (e) larger increases in labour will be required to keep output constant. QUESTION 11 The least cost technique of producing a given output occurs where the marginal rate of substitution of labour for capital equals the (a) ratio of the quantity of labour used relative to the quantity of capital used. (b) ratio of the price of labour to the price of capital. (c) minimum point on the isoquant line. (d) marginal cost of capital (e) ratio of the marginal cost of capital to the marginal cost of labour. QUESTION 12 A perfectly competitive firm’s supply curve is the upward-sloping part of its (a) average product curve, at all points above the point of minimum average variable cost. (b) marginal cost curve, at all points above the point of minimum average fixed cost. (c) marginal revenue curve, at all points above the point of minimum average revenue. (d) marginal revenue curve, at all points above the point of minimum average total cost. (e) marginal cost curve, at all points above the point of minimum average variable cost. QUESTION 13 For the monopolist facing a downward sloping demand, the marginal revenue  never exceeds the price because (a) the producers of substitutes keep the price low. (b) the monopolist must lower the price in order to sell more during any given period of time. (c) the monopoly will be a large corporation with high fixed costs. (d) the monopoly must accept the marginal revenue set by the market as a whole. (e) the monopoly has low marginal cost relative to a competitive firm. QUESTION 14 The table gives the demand schedule for water bottled by Wanda’s Healthy Waters, a single-price monopoly. If the marginal cost is a constant $4 a bottle, Wanda’s will produce _______ a day and charge ____ a bottle. (a) 3 bottles; $7 (b) 4 bottles; $6 (c) 5 bottles; $5 (d) 1 bottle; $9 QUESTION 15 The table below gives the demand and supply schedule for biscuits. The government now levies a $3 tax on biscuit. As a result, the price of a packet of biscuits will increase to ____ and the tax revenue collected is ____. (a) $12; $160 a week (b) $12; $300 a week (c) $13; $160 a week (d) $13; $240 a week Price ($ per packet) Quantity demanded (packets / week) Quantity supplied (packets / week) QUESTION 16 Excess capacity in monopolistically competitive firms is described by the fact that (a) each firm faces a demand that is perfectly elastic. (b) each firms builds a huge plant. (c) the existence of slightly differentiated products serving almost the same purpose causes a waste of precious natural resources. (d) firms produce at an output that is less than the output associated with their minimum average total cost. (e) marginal cost is too high. QUESTION 17 When the economic profit is negative in an industry that is monopolistically competitive, then (a) firms will enter the industry and produce better products. (b) firms will exit the industry, and the demand will increase for the products of the firms that remain. (c) firms will exit the industry, and the demand will decrease for those firms that remain in the industry. (d) firms will enter the industry and the demand will become more elastic for those firms that were originally in the industry. (e) the industry will eventually disappear. QUESTION 18 If the electricity commission in Queensland practises perfect price discrimination: (a) its marginal cost curve and its demand curve are identical. (b) its marginal revenue curve and its demand curve are identical. (c) its marginal revenue curve lies below its demand curve. (d) its marginal revenue curve lies above its demand curve. (e) none of the above.