Sample Thesis Paper
The second viewpoint is the Utilitarian viewpoint which also states that any trade which is free of government control will yield more benefits than any amount of legislation possible. This system necessitates meeting the demands of the population. Thus according to this system consumers will buy the items they require at the lowest prices possible. Thus companies will change their business operations in order to meet these needs. They can ensure this by cutting back on costly resources and ensure that the remaining resources are wisely used so that the needs of the consumers can be met along with protection of their profit margin.
A profit margin is the amount of money the company requires to remain viable. One other factor which stands in the way of the company’s profit margin is the existence of other companies in competition for them. Since these other companies are also targeting the same market with the same consumers it stands to reason that the company will reallocate its resources to ensure that the price of the item sold is as close to the original manufacturing cost as possible providing the consumer with enough incentives to buy the product. In a competitive market there is also the existence of a notion known as the natural price. The natural price is the original manufacturing cost of the product with the going rate of profit which can be obtained from markets. Thus while companies may act in their own self interests ultimately they are ultimately serving the interests of society. In a competitive market there can also be a disparity between the amount of product supplied and the demand for the product. If the product supplied is low in stock and high in demand then the price of the product is higher than the natural price. Creators of this product will thus receive greater profits than other companies having similar products. Similarly if the supply of the product is high and the demand is low the price of the product will fall to reflect the changing market. In both cases the manufacturers will use their resources for the creation of a more profitable product though the stimuli behind the creation will be different.