Misplaced Pages

#514485

120-775: The Ambundu nowadays live in the region stretching to the East from Angola's capital city of Luanda (see map). They are predominant in the Bengo and Malanje provinces and in neighbouring parts of the Cuanza Norte and Cuanza Sul provinces. The head of the main Ambundu kingdom was called a Ngola , which is the origin of the name of the country Angola . The Mbundu speak the Kimbundu language , which has two dialects: Akwaluanda and Ambakista. Spoken in Luanda in

240-405: A " de jure monopoly") is a form of coercive monopoly , in which a government grants exclusive privilege to a private individual or company to be the sole provider of a commodity. Monopoly may be granted explicitly, as when potential competitors are excluded from the market by a specific law , or implicitly, such as when the requirements of an administrative regulation can only be fulfilled by

360-509: A PC market are price takers. The price is set by the interaction of demand and supply at the market or aggregate level. Individual companies simply take the price determined by the market and produce that quantity of output that maximizes the company's profits. If a PC company attempted to increase prices above the market level all its customers would abandon the company and purchase at the market price from other companies. A monopoly has considerable although not unlimited market power. A monopoly has

480-739: A boarding pass before boarding an airplane. Most travelers assume that this practice is strictly a matter of security. However, a primary purpose in requesting photographic identification is to confirm that the ticket purchaser is the person about to board the airplane and not someone who has repurchased the ticket from a discount buyer. The inability to prevent resale is the largest obstacle to successful price discrimination. Companies have, however, developed numerous methods to prevent resale. For example, universities require that students show identification before entering sporting events. Governments may make it illegal to resell tickets or products. In Boston, Red Sox baseball tickets can only be resold legally to

600-598: A company cannot charge more than the market price. Any market structure characterized by a downward sloping demand curve has market power – monopoly, monopolistic competition and oligopoly. The only market structure that has no market power is perfect competition. A company wishing to practice price discrimination must be able to prevent middlemen or brokers from acquiring the consumer surplus for themselves. The company accomplishes this by preventing or limiting resale. Many methods are used to prevent resale. For instance, persons are required to show photographic identification and

720-426: A consumer's tax return has information that can be used to charge customers based on an estimate of their ability to pay. In second degree price discrimination or quantity discrimination customers are charged different prices based on how much they buy. There is a single price schedule for all consumers but the prices vary depending on the quantity of the good bought. The theory of second degree price discrimination

840-438: A consumer's willingness to pay is rarely available. Sellers tend to rely on secondary information such as where a person lives (postal codes); for example, catalog retailers can use mail high-priced catalogs to high-income postal codes. First degree price discrimination most frequently occurs in regard to professional services or in transactions involving direct buyer-seller negotiations. For example, an accountant who has prepared

960-549: A customer's willingness to buy a good is difficult. Asking consumers directly is fruitless: consumers do not know, and to the extent they do they are reluctant to share that information with marketers. The two main methods for determining willingness to buy are observation of personal characteristics and consumer actions. As noted information about where a person lives (postal codes), how the person dresses, what kind of car he or she drives, occupation, and income and spending patterns can be helpful in classifying. The price of monopoly

1080-492: A different price. Third degree price discrimination is the most prevalent type. There are three conditions that must be present for a company to engage in successful price discrimination. First, the company must have market power. Second, the company must be able to sort customers according to their willingness to pay for the good. Third, the firm must be able to prevent resell. A company must have some degree of market power to practice price discrimination. Without market power

1200-415: A government. In many jurisdictions, competition laws restrict monopolies due to government concerns over potential adverse effects. Holding a dominant position or a monopoly in a market is often not illegal in itself; however, certain categories of behavior can be considered abusive and therefore incur legal sanctions when business is dominant. A government-granted monopoly or legal monopoly , by contrast,

1320-409: A half-litre tub of vanilla ice cream at the supermarket was reported to cost US$ 31. The higher import tariffs applied to hundreds of items, from garlic to cars. The stated aim was to try to diversify the heavily oil-dependent economy and nurture farming and industry, sectors that have remained weak. These tariffs have caused much hardship in a country where the average salary was US$ 260 per month in 2010,

SECTION 10

#1732851663515

1440-433: A higher price than P ∗ {\displaystyle P^{*}} and those who will not pay P ∗ {\displaystyle P^{*}} but would buy at a lower price. A price discrimination strategy is to charge less price sensitive buyers a higher price and the more price sensitive buyers a lower price. Thus additional revenue is generated from two sources. The basic problem

1560-503: A linear demand curve. Assume that the inverse demand curve is of the form x = a − b y {\displaystyle x=a-by} . Then the total revenue curve is TR = a y − b y 2 {\displaystyle {\text{TR}}=ay-by^{2}} and the marginal revenue curve is thus MR = a − 2 b y {\displaystyle {\text{MR}}=a-2by} . From this several things are evident. First,

1680-464: A little their definition of a good, allowing for more flexibility in the identification of substitute goods. A monopoly has at least one of these five characteristics: Market power can be estimated with Lerner index . High profit margins might not correspond to a high rate of return or monopoly prices and might represent risk premiums . Monopolies derive their market power from barriers to entry – circumstances that prevent or greatly impede

1800-948: A man named Mussuri rose from ironworker to king of the Mbundu. After marrying a woman named Ngola Inene, they are said to have birthed a daughter named Samba. Samba gave birth to 8 children, who later begot the Ndongo, the Mbondo, the Pende, the Hungu, the Lenge, the Imbangala, the Songo and the Libolo people. The Pende people tell an oral tradition of a single ancestor named Ngola Kilanji, who ruled over hunters and warriors at Tandji in Milumbu near

1920-416: A maximum value then continuously decreases until total revenue is again zero. Total revenue has its maximum value when the slope of the total revenue function is zero. The slope of the total revenue function is marginal revenue. So the revenue maximizing quantity and price occur when MR = 0 {\displaystyle {\text{MR}}=0} . For example, assume that the monopoly's demand function

2040-466: A monopolist to increase its profit by charging higher prices for identical goods to those who are willing or able to pay more. For example, most economic textbooks cost more in the United States than in developing countries like Ethiopia . In this case, the publisher is using its government-granted copyright monopoly to price discriminate between the generally wealthier American economics students and

2160-495: A monopoly should be distinguished from a cartel (a form of oligopoly), in which several providers act together to coordinate services, prices or sale of goods. Monopolies, monopsonies and oligopolies are all situations in which one or a few entities have market power and therefore interact with their customers (monopoly or oligopoly), or suppliers (monopsony) in ways that distort the market. Monopolies can be formed by mergers and integrations, form naturally , or be established by

2280-509: A monopoly. Often, a natural monopoly is the outcome of an initial rivalry between several competitors. An early market entrant that takes advantage of the cost structure and can expand rapidly can exclude smaller companies from entering and can drive or buy out other companies. A natural monopoly suffers from the same inefficiencies as any other monopoly. Left to its own devices, a profit-seeking natural monopoly will produce where marginal revenue equals marginal costs. Regulation of natural monopolies

2400-447: A more elastic demand for movies than do young adults because they generally have more free time. Thus theaters will offer discount tickets to seniors. Assume that by a uniform pricing system the monopolist would sell five units at a price of $ 10 per unit. Assume that his marginal cost is $ 5 per unit. Total revenue would be $ 50, total costs would be $ 25 and profits would be $ 25. If the monopolist practiced price discrimination he would sell

2520-496: A more price inelastic demand and a relatively lesser price to the group with a more elastic demand. Examples of third degree price discrimination abound. Airlines charge higher prices to business travelers than to vacation travelers. The reasoning is that the demand curve for a vacation traveler is relatively elastic while the demand curve for a business traveler is relatively inelastic. Any determinant of price elasticity of demand can be used to segment markets. For example, seniors have

SECTION 20

#1732851663515

2640-438: A new trade in ivory, rubber and wax, which avoided the old monopolies, reduced the power of central authority in the Ambundu states in this century. The Portuguese defeated Matamba in 1836, and advanced to Kasanje by the middle of the century. Their actual influence, however, was quite limited due to the lack of people, money, and an efficient military. The Ambundu had opportunities to revolt or negotiate liberties. This changed at

2760-534: A northerly counter current bringing moisture to the city: it has been shown clearly that weakness in the Benguela Current can increase rainfall about sixfold compared with years when that current is strong. A 2019 paper published in PLOS One estimated that under Representative Concentration Pathway 4.5 , a "moderate" scenario of climate change where global warming reaches ~2.5–3 °C (4.5–5.4 °F) by 2100,

2880-452: A particular thing, a lack of viable substitute goods , and the possibility of a high monopoly price well above the seller's marginal cost that leads to a high monopoly profit . The verb monopolise or monopolize refers to the process by which a company gains the ability to raise prices or exclude competitors. In economics, a monopoly is a single seller. In law, a monopoly is a business entity that has significant market power, that is,

3000-421: A perfectly elastic demand curve meaning that total revenue is proportional to output. Thus the total revenue curve for a competitive company is a ray with a slope equal to the market price. A competitive company can sell all the output it desires at the market price. For a monopoly to increase sales it must reduce price. Thus the total revenue curve for a monopoly is a parabola that begins at the origin and reaches

3120-531: A potential competitor's ability to compete in a market. There are three major types of barriers to entry: economic, legal, and deliberate. In addition to barriers to entry and competition, barriers to exit may be a source of market power. Barriers to exit are market conditions that make it difficult or expensive for a company to end its involvement with a market. High liquidation costs are a primary barrier to exiting. Market exit and shutdown are sometimes separate events. The decision of whether to shut down or operate

3240-477: A price increase, price elasticity tends to increase, and in the optimum case above it will be greater than one for most customers. A company maximizes profit by selling where marginal revenue equals marginal cost. A company that does not engage in price discrimination will charge the profit maximizing price, P ∗ {\displaystyle P^{*}} , to all its customers. In such circumstances there are customers who would be willing to pay

3360-424: A single agent or entrepreneur, the optimal decision is to equate the marginal cost and marginal revenue of production. Nonetheless, a pure monopoly can – unlike a competitive company – alter the market price for its own convenience: a decrease of production results in a higher price. In the economics' jargon, it is said that pure monopolies have "a downward-sloping demand". An important consequence of such behaviour

3480-402: A substitute. Contrary to common misconception , monopolists do not try to sell items for the highest possible price, nor do they try to maximize profit per unit, but rather they try to maximize total profit. A natural monopoly is an organization that experiences increasing returns to scale over the relevant range of output and relatively high fixed costs. A natural monopoly occurs where

3600-406: Is P = 50 − 2 Q {\displaystyle P=50-2Q} . The total revenue function would be TR = 50 Q − 2 Q 2 {\displaystyle {\text{TR}}=50Q-2Q^{2}} and marginal revenue would be 50 − 4 Q {\displaystyle 50-4Q} . Setting marginal revenue equal to zero we have So

3720-425: Is Portuguese , although several Bantu languages are also used, chiefly Kimbundu , Umbundu , and Kikongo . The population of Luanda has grown dramatically in recent years, due in large part to war-time migration to the city, which is safe compared to the rest of the country. In 2006, however, Luanda saw an increase in violent crime, particularly in the shanty towns that surround the colonial urban core. There

Ambundu - Misplaced Pages Continue

3840-470: Is Angola's administrative centre , its chief seaport, and also the capital of the Luanda Province . Luanda and its metropolitan area is the most populous Portuguese-speaking capital city in the world and the most populous Lusophone city outside Brazil . In 2020 the population reached more than 8.3 million inhabitants (a third of Angola's population). Among the oldest colonial cities of Africa, Luanda

3960-519: Is a West-Bantu language, and it is thought that, in the Bantu migrations, the Ambundu have arrived coming from the North rather than from the East. The Bantu peoples brought agriculture with them. They built permanent villages and traded with the indigenous Pygmies and Khoi-San populations. The Ambundu society consisted of local communities until the 14th century. Their society has always been matrilineal . Land

4080-502: Is a consumer is willing to buy only a certain quantity of a good at a given price. Companies know that consumer's willingness to buy decreases as more units are purchased. The task for the seller is to identify these price points and to reduce the price once one is reached in the hope that a reduced price will trigger additional purchases from the consumer. For example, sell in unit blocks rather than individual units. In third degree price discrimination or multi-market price discrimination

4200-552: Is a sizable minority population of European origin, especially Portuguese (about 260,000), as well as Brazilians . In recent years, mainly since the mid-2000s, immigration from Portugal has increased due to greater opportunities present in Angola's booming economy. There is a sprinkling of immigrants from other African countries as well, including a small expatriate South African community. A small number of people of Luanda are of mixed race — European/Portuguese and native African. Over

4320-420: Is a structure in which a single supplier produces and sells a given product or service. If there is a single seller in a certain market and there are no close substitutes for the product, then the market structure is that of a "pure monopoly". Sometimes, there are many sellers in an industry or there exist many close substitutes for the goods being produced, but nevertheless, companies retain some market power. This

4440-400: Is a theoretical construct, advances in information technology and micromarketing may bring it closer to the realm of possibility. Partial price discrimination can cause some customers who are inappropriately pooled with high price customers to be excluded from the market. For example, a poor student in the U.S. might be excluded from purchasing an economics textbook at the U.S. price, which

4560-415: Is also notable as an economic centre for oil, and a refinery is located in the city. Luanda has been ranked as one of the most expensive cities in the world for expatriates. The inhabitants of Luanda are mostly members of the ethnic Ambundu people. In recent decades of the 21st century, the number of ethnic Bakongo and Ovimbundu have also increased. Ethnic Europeans are mainly Portuguese. Luanda

4680-681: Is defined by the total gains from trade, the monopoly setting is less efficient than perfect competition. It is often argued that monopolies tend to become less efficient and less innovative over time, becoming "complacent", because they do not have to be efficient or innovative to compete in the marketplace. Sometimes this very loss of psychological efficiency can increase a potential competitor's value enough to overcome market entry barriers, or provide incentive for research and investment into new alternatives. The theory of contestable markets argues that in some circumstances (private) monopolies are forced to behave as if there were competition because of

4800-401: Is growing constantly - and in addition, increasingly beyond the official city limits and even provincial boundaries. Luanda is the seat of a Roman Catholic archbishop. It is also the location of most of Angola's educational institutions, including the private Catholic University of Angola and the public University of Agostinho Neto . It is also the home of the colonial Governor's Palace and

4920-417: Is important information for one to remember when considering the monopoly model diagram (and its associated conclusions) displayed here. The result that monopoly prices are higher, and production output lesser, than a competitive company follow from a requirement that the monopoly not charge different prices for different customers. That is, the monopoly is restricted from engaging in price discrimination (this

Ambundu - Misplaced Pages Continue

5040-401: Is known as the "revolution in monopoly theory". A monopolist can extract only one premium, and getting into complementary markets does not pay. That is, the total profits a monopolist could earn if it sought to leverage its monopoly in one market by monopolizing a complementary market are equal to the extra profits it could earn anyway by charging more for the monopoly product itself. However,

5160-487: Is not affected by exit barriers. A company will shut down if the price falls below minimum average variable costs. While monopoly and perfect competition represent the extremes of market structures there is some similarity. The cost functions are the same. Both monopolies and perfectly competitive (PC) companies minimize cost and maximize profit. The shutdown decisions are the same. Both are assumed to have perfectly competitive factors markets. There are distinctions; some of

5280-400: Is not perfect. Regulators must estimate average costs. Companies have a reduced incentive to lower costs. Regulation of this type has not been limited to natural monopolies. Average-cost pricing does also have some disadvantages. By setting price equal to the intersection of the demand curve and the average total cost curve, the firm's output is allocatively inefficient as the price is less than

5400-516: Is one of the world's most expensive cities for resident foreigners. In Mercer’s cost of living index, Luanda was ranked as top of the list due to the extremely high costs of goods and security. Luanda sits above Seoul , Geneva and Shanghai in the rankings. These costs have fueled rampant inequality in the city. Skyscrapers are left barren as the price of oil drops. New import tariffs imposed in March 2014 made Luanda even more expensive. As an example,

5520-400: Is problematic. Fragmenting such monopolies is by definition inefficient. The most frequently used methods dealing with natural monopolies are government regulations and public ownership. Government regulation generally consists of regulatory commissions charged with the principal duty of setting prices. Natural monopolies are synonymous with what is called "single-unit enterprise", a term which

5640-446: Is sanctioned by the state, often to provide an incentive to invest in a risky venture or enrich a domestic interest group . Patents , copyrights , and trademarks are sometimes used as examples of government-granted monopolies. The government may also reserve the venture for itself, thus forming a government monopoly , for example with a state-owned company . Monopolies may be naturally occurring due to limited competition because

5760-448: Is taking place. Large investment (domestic and international), along with strong economic growth, has dramatically increased construction of all economic sectors in the city of Luanda. In 2007, the first modern shopping mall in Angola was established in the city at Belas Shopping mall. Luanda is the starting point of the Luanda railway that goes due east to Malanje. The civil war left

5880-448: Is termed first degree price discrimination , such that all customers are charged the same amount). If the monopoly were permitted to charge individualised prices (this is termed third degree price discrimination ), the quantity produced, and the price charged to the marginal customer, would be identical to that of a competitive company, thus eliminating the deadweight loss ; however, all gains from trade (social welfare) would accrue to

6000-409: Is termed "monopolistic competition", whereas in an oligopoly , the companies interact strategically. In general, the main results from this theory compare the price-fixing methods across market structures, analyze the effect of a certain structure on welfare, and vary technological or demand assumptions in order to assess the consequences for an abstract model of society. Most economic textbooks follow

6120-617: Is that typically a monopoly selects a higher price and lesser quantity of output than a price-taking company; again, less is available at a higher price. A monopoly chooses that price that maximizes the difference between total revenue and total cost. The basic markup rule (as measured by the Lerner index ) can be expressed as P − M C P = − 1 E d {\displaystyle {\frac {P-MC}{P}}={\frac {-1}{E_{d}}}} , where E d {\displaystyle E_{d}}

SECTION 50

#1732851663515

6240-560: Is the only market form in which price discrimination would be impossible (a perfectly competitive company has a perfectly elastic demand curve and has no market power). There are three forms of price discrimination. First degree price discrimination charges each consumer the maximum price the consumer is willing to pay. Second degree price discrimination involves quantity discounts. Third degree price discrimination involves grouping consumers according to willingness to pay as measured by their price elasticities of demand and charging each group

6360-535: Is the price elasticity of demand the firm faces. The markup rules indicate that the ratio between profit margin and the price is inversely proportional to the price elasticity of demand. The implication of the rule is that the more elastic the demand for the product the less pricing power the monopoly has. Market power is the ability to increase the product's price above marginal cost without losing all customers. Perfectly competitive (PC) companies have zero market power when it comes to setting prices. All companies of

6480-517: Is to identify customers by their willingness to pay. The purpose of price discrimination is to transfer consumer surplus to the producer. Consumer surplus is the difference between the value of a good to a consumer and the price the consumer must pay in the market to purchase it. Price discrimination is not limited to monopolies. Market power is a company's ability to increase prices without losing all its customers. Any company that has market power can engage in price discrimination. Perfect competition

6600-441: Is upon every occasion the highest which can be got. The natural price, or the price of free competition, on the contrary, is the lowest which can be taken, not upon every occasion indeed, but for any considerable time together. The one is upon every occasion the highest which can be squeezed out of the buyers, or which it is supposed they will consent to give; the other is the lowest which the sellers can commonly afford to take, and at

6720-628: The Carnation Revolution in Lisbon on April 25, 1974, with the advent of independence and the start of the Angolan Civil War (1975–2002), most of the white Portuguese Luandans left as refugees, principally for Portugal, however many travelled over land to South Africa . The large numbers of skilled technicians among the force of Cuban soldiers sent in to support the Popular Movement for

6840-485: The Estádio da Cidadela (the "Citadel Stadium"), Angola's main stadium, with a total seating capacity of 60,000. Luanda has a hot semi-desert climate ( Köppen : BSh ), bordering upon a hot desert climate ( BWh ). The climate is warm to hot but surprisingly dry, owing to the cool Benguela Current , which prevents moisture from easily condensing into rain. Frequent fog prevents temperatures from falling at night even during

6960-488: The Zambezi River . Then Ngola moved his people west towards the sea, creating villages, or jingundu, along the way until they reached Luanda on the coast. He later unified his people with another group that was led by a master blacksmith named Bembo Kalamba and his wife Ngombe dia Nganda. Bembo's people introduced Ngola's people to farming, cattle-herding and weaving. This origin story maintains that Ngombe's daughters became

7080-514: The cosmopolitan city of Luanda was not affected by the Portuguese Colonial War (1961–1974); economic growth and development in the entire region reached record highs during this period. In 1982, a report called Luanda the "Paris of Africa". By the time of Angolan independence in 1975, Luanda was a modern city with the majority of its population being African, but also dominated by a strong minority of white Portuguese origin. After

7200-419: The 2022 IPCC Sixth Assessment Report , Luanda is one of 12 major African cities ( Abidjan , Alexandria , Algiers , Cape Town , Casablanca , Dakar , Dar es Salaam , Durban , Lagos , Lomé , Luanda and Maputo ) which would be the most severely affected by the future sea level rise . It estimates that they would collectively sustain cumulative damages of USD 65 billion under RCP 4.5 and USD 86.5 billion for

7320-411: The Ambundu group through his paternal line. Luanda 8°50′18″S 13°14′04″E  /  8.83833°S 13.23444°E  / -8.83833; 13.23444 Luanda (/luˈændə, -ˈɑːn-/, Portuguese: [luˈɐ̃dɐ]) is the capital and largest city of Angola . It is Angola's primary port , and its major industrial, cultural and urban centre. Located on Angola's northern Atlantic coast, Luanda

SECTION 60

#1732851663515

7440-531: The Liberation of Angola ( MPLA ) government in the Angolan Civil War were able to make a valuable contribution to restoring and maintaining basic services in the city. In the following years, however, slums called musseques —which had existed for decades—began to grow out of proportion and stretched several kilometres beyond Luanda's former city limits as a result of the decades-long civil war, and because of

7560-611: The Mbundu came from "the great water." Many historians interpreted this as the Atlantic Ocean and cite their origin as Luanda Island . This oral tradition also speaks of five great ancestors of the Mbundu: Zundu dya Mbulu, the mother of the Ndongo people; Kajinga ka Mbulu, founder of the Mbondo Kingdom; Matamba a Mulu, mother of the Pende people; and Kongo dya Mbulu, founder of the Hungu people. The second oral tradition records that

7680-554: The Portuguese built the fortress called Fortaleza São Pedro da Barra , and they subsequently built two more: Fortaleza de São Miguel (1634) and Forte de São Francisco do Penedo (1765–66). Of these, the Fortaleza de São Miguel is the best preserved. Luanda was Portugal's bridgehead from 1627, except during the Dutch rule of Luanda , from 1640 to 1648, as Fort Aardenburgh. The city served as

7800-470: The Portuguese three years to subdue a NDembo revolt in 1910. In 1917 all of their territory was occupied, and they became part of the Portuguese colony of Angola . The American actor Chris Tucker discovered on the PBS television programme African American Lives that his matrilineal DNA traced to Mbundu people in present-day Angola . Isaiah Washington , another American actor, has a genealogical DNA link to

7920-653: The Province was enlarged by the addition of two additional municipalities transferred from Bengo Province , namely Icolo e Bengo, and Quiçama. Excluding these additions, the five municipalities comprise Greater Luanda: Two new municipalities have been created within Greater Luanda since 2017: Talatona and Kilamba-Kiaxi The city of Luanda is divided in six urban districts: Ingombota , Angola Quiluanje, Maianga, Rangel, Samba and Sambizanga. In Samba and Sambizanga, more high-rise developments are to be built. The capital Luanda

8040-698: The South, or the Bakongo to the North. The name Mbundu was first used by the Bakongo , before it was adopted by the Ambundu themselves. Kongo, which had been in contact with the Portuguese since 1482, held a monopoly on trade with this country. When Ndongo 's king, or ngola , tried to break this monopoly, this led to war, in which the Bakongo were defeated in 1556. Ndongo was now independent, and directly confronted Portugal's colonialism . It allied itself with Matamba against

8160-435: The annual Luanda International Jazz Festival , since 2009. The city is home to numerous museums, including: Other monuments in the city include: Around one-third of Angolans live in Luanda, 53% of whom live in poverty. Living conditions in Luanda are poor for most of the people, with essential services such as safe drinking water and electricity still in short supply, and severe shortcomings in traffic conditions. Luanda

8280-403: The average cost of production "declines throughout the relevant range of product demand". The relevant range of product demand is where the average cost curve is below the demand curve. When this situation occurs, it is always more efficient for one large company to supply the market than multiple smaller companies; in fact, absent government intervention in such markets, will naturally evolve into

8400-422: The capacity of the city, especially because much of its infrastructure (water, electricity, roads etc.) had become obsolete and degraded. Luanda has been undergoing major road reconstruction in the 21st century, and new highways are planned to improve connections to Cacuaco , Viana , Samba , and the new airport. Major social housing is also being constructed to house those who reside in slums, which dominate

8520-467: The case that at the profit-maximizing quantity MR and MC are less than price, which further implies that a monopoly produces less quantity at a higher price than if the market were perfectly competitive. The fact that a monopoly has a downward-sloping demand curve means that the relationship between total revenue and output for a monopoly is much different from that of competitive companies. Total revenue equals price times quantity. A competitive company has

8640-438: The centre of slave trade to Brazil from c.  1550 to 1836. The slave trade was conducted mostly with the Portuguese colony of Brazil; Brazilian ships were the most numerous in the port of Luanda. This slave trade also involved local merchants and warriors who profited from the trade. During this period, no large scale territorial conquest was intended by the Portuguese; only a few minor settlements were established in

8760-495: The climate of Luanda in the year 2050 would most closely resemble the current climate of Guatemala City . The annual temperature would increase by 0.7 °C (1.3 °F), the temperature of the coldest month by 0.4 °C (0.72 °F), and the temperature of the warmest month by 0.1 °C (0.18 °F). According to Climate Action Tracker , the current warming trajectory appears consistent with 2.7 °C (4.9 °F), which closely matches RCP 4.5. Moreover, according to

8880-714: The completely dry months from May to October. Luanda has an annual rainfall of 405 millimetres (15.9 in), but the variability is among the highest in the world, with a co-efficient of variation above 40 percent. The climate is largely influenced by the offshore Benguela current. The current gives the city a surprisingly low humidity despite its tropical latitude, which makes the hotter months considerably more bearable than similar cities in Western/Central Africa. Observed records since 1858 range from 55 millimetres (2.2 in) in 1958 to 851 millimetres (33.5 in) in 1916. The short rainy season in March and April depends on

9000-433: The country in 1590 but was defeated in 1614. Now, Ndongo itself became a target for the slave trade, and its population fled in large numbers to neighbouring states. Queen Njinga was the daughter of a deceased Ndongo ngola. At the request of Mbandi, the reigning ngola and her brother, she negotiated a peace treaty with the Portuguese. The treaty gave substantial trade and religious advantages to Portugal but delivered Mbandi

9120-453: The end of the 19th century. European countries forced, out of economic, strategic, and nationalistic considerations, a tighter control over African territories. To protect their interests, the Portuguese sent a number of military expeditions into the areas, which they considered to be their colonies, and brought them under actual control. The last Ambundu tribe to be defeated were the NDembo. It took

9240-407: The first unit for $ 17 the second unit for $ 14 and so on which is listed in the table below. Total revenue would be $ 55, his total cost would be $ 25 and his profit would be $ 30. Several things are worth noting. The monopolist acquires all the consumer surplus and eliminates practically all the deadweight loss because he is willing to sell to anyone who is willing to pay at least the marginal cost. Thus

9360-400: The form of price control is necessary as it helped efficient market. To reduce prices and increase output, regulators often use average cost pricing. By average cost pricing, the price and quantity are determined by the intersection of the average cost curve and the demand curve. This pricing scheme eliminates any positive economic profits since price equals average cost. Average-cost pricing

9480-429: The generally poorer Ethiopian economics students. Similarly, most patented medications cost more in the U.S. than in other countries with a (presumed) poorer customer base. Typically, a high general price is listed, and various market segments get varying discounts. This is an example of framing to make the process of charging some people higher prices more socially acceptable. Perfect price discrimination would allow

9600-430: The high-emission scenario RCP 8.5 by the year 2050. Additionally, RCP 8.5 combined with the hypothetical impact from marine ice sheet instability at high levels of warming would involve up to 137.5 billion USD in damages, while the additional accounting for the "low-probability, high-damage events" may increase aggregate risks to USD 187 billion for the "moderate" RCP4.5, USD 206 billion for RCP8.5 and USD 397 billion under

9720-406: The high-end ice sheet instability scenario. Since sea level rise would continue for about 10,000 years under every scenario of climate change, future costs of sea level rise would only increase, especially without adaptation measures. The inhabitants of Luanda are primarily members of African ethnic groups, mainly Ambundu , Ovimbundu , and Bakongo . The official and the most widely used language

9840-582: The immediate hinterland of Luanda, some on the last stretch of the Kwanza River . In the 17th century, the Imbangala became the main rivals of the Mbundu in supplying slaves to the Luanda market. In the 1751, between 5,000 and 10,000 slaves were annually sold. By this time, Angola, a Portuguese colony, was in fact like a colony of Brazil, paradoxically another Portuguese colony. A strong degree of Brazilian influence

9960-595: The industry is resource intensive and requires substantial costs to operate (e.g., certain railroad systems). Market structure is determined by following factors: In economics, the idea of monopolies is important in the study of management structures, which directly concerns normative aspects of economic competition, and provides the basis for topics such as industrial organization and economics of regulation . There are four basic types of market structures in traditional economic analysis: perfect competition , monopolistic competition , oligopoly and monopoly. A monopoly

10080-501: The landscape of Luanda. A large Chinese firm has been given a contract to construct the majority of replacement housing in Luanda. The Angolan minister of health recently stated poverty in Angola will be overcome by an increase in jobs and the housing of every citizen. Luanda is divided into two parts, the Baixa de Luanda (lower Luanda, the old city) and the Cidade Alta (upper city or

10200-493: The last decades, a significant Chinese community has formed, as has a much smaller Vietnamese community. Among the places of worship , several are predominantly Christian churches and congregations: As the economic and political center of Angola, Luanda is similarly the epicenter of Angolan culture. The city is home to numerous cultural institutions, including the Sindika Dokolo Foundation . The city hosts

10320-418: The latest year for which data was available. However, the average salary in the booming oil industry was over 20 times higher at US$ 5,400 per month. Manufacturing includes processed foods , beverages , textiles , cement and other building materials, plastic products, metalware, cigarettes , and shoes/clothes. Petroleum (found in nearby off-shore deposits) is refined in the city, although this facility

10440-466: The marginal cost (which is the output quantity for a perfectly competitive and allocatively efficient market). In 1848, J.S. Mill was the first individual to describe monopolies with the adjective "natural". He used it interchangeably with "practical". At the time, Mill gave the following examples of natural or practical monopolies: gas supply, water supply, roads, canals, and railways. In his Social Economics , Friedrich von Wieser demonstrated his view of

10560-587: The marginal revenue curve has the same x {\displaystyle x} -intercept as the inverse demand curve. Second, the slope of the marginal revenue curve is twice that of the inverse demand curve. What is not quite so evident is that the marginal revenue curve is below the inverse demand curve at all points ( y ≥ 0 {\displaystyle y\geq 0} ). Since all companies maximise profits by equating MR {\displaystyle {\text{MR}}} and MC {\displaystyle {\text{MC}}} it must be

10680-401: The monopolist and none to the consumer. In essence, every consumer would be indifferent between going completely without the product or service and being able to purchase it from the monopolist. As long as the price elasticity of demand for most customers is less than one in absolute value , it is advantageous for a company to increase its prices: it receives more money for fewer goods. With

10800-445: The monopolist to charge each customer the exact maximum amount they would be willing to pay. This would allow the monopolist to extract all the consumer surplus of the market. A domestic example would be the cost of airplane flights in relation to their takeoff time; the closer they are to flight, the higher the plane tickets will cost, discriminating against late planners and often business flyers. While such perfect price discrimination

10920-511: The most important are as follows: The most significant distinction between a PC company and a monopoly is that the monopoly has a downward-sloping demand curve rather than the "perceived" perfectly elastic curve of the PC company. Practically all the variations mentioned above relate to this fact. If there is a downward-sloping demand curve then by necessity there is a distinct marginal revenue curve. The implications of this fact are best made manifest with

11040-462: The mothers of the Mbundu ethnic groups and that Ngola founded the Kingdom of Ndongo . The royal title ngola is said to be derived from his name. The symbol for iron, which is so called ngola , is still used today by the Mbundu. They had been arriving in the Angola region from the early Middle Ages on, but the biggest part of the immigration took place between the 13th and 16th century C.E.. Kimbundu

11160-411: The new part). The Baixa de Luanda is situated next to the port, and has narrow streets and old colonial buildings. However, new constructions have by now covered large areas beyond these traditional limits, and a number of previously independent nuclei — like Viana — were incorporated into the city. Until 2011, the former Luanda Province comprised what now forms five municipalities . In 2011

11280-402: The one monopoly profit theorem is not true if customers in the monopoly good are stranded or poorly informed, or if the tied good has high fixed costs. A pure monopoly has the same economic rationality of perfectly competitive companies, i.e. to optimise a profit function given some constraints. By the assumptions of increasing marginal costs, exogenous inputs' prices, and control concentrated on

11400-508: The postal service as a natural monopoly: "In the face of [such] single-unit administration, the principle of competition becomes utterly abortive. The parallel network of another postal organization, beside the one already functioning, would be economically absurd; enormous amounts of money for plant and management would have to be expended for no purpose whatever." Overall, most monopolies are man-made monopolies, or unnatural monopolies, not natural ones. A government-granted monopoly (also called

11520-415: The power to charge overly high prices, which is associated with unfair price raises . Although monopolies may be big businesses, size is not a characteristic of a monopoly. A small business may still have the power to raise prices in a small industry (or market). A monopoly may also have monopsony control of a sector of a market. A monopsony is a market situation in which there is only one buyer. Likewise,

11640-426: The power to set prices or quantities although not both. A monopoly is a price maker. The monopoly is the market and prices are set by the monopolist based on their circumstances and not the interaction of demand and supply. The two primary factors determining monopoly market power are the company's demand curve and its cost structure. Market power is the ability to affect the terms and conditions of exchange so that

11760-457: The practice of carefully explaining the "perfect competition" model, mainly because this helps to understand departures from it (the so-called "imperfect competition" models). The boundaries of what constitutes a market and what does not are relevant distinctions to make in economic analysis. In a general equilibrium context, a good is a specific concept including geographical and time-related characteristics. Most studies of market structure relax

11880-455: The price discrimination promotes efficiency. Secondly, by the pricing scheme price = average revenue and equals marginal revenue. That is the monopolist behaving like a perfectly competitive company. Thirdly, the discriminating monopolist produces a larger quantity than the monopolist operating by a uniform pricing scheme. Successful price discrimination requires that companies separate consumers according to their willingness to buy. Determining

12000-403: The price of a product is set by a single company (price is not imposed by the market as in perfect competition). Although a monopoly's market power is great it is still limited by the demand side of the market. A monopoly has a negatively sloped demand curve, not a perfectly inelastic curve. Consequently, any price increase will result in the loss of some customers. Price discrimination allows

12120-453: The product or service less than its price, monopoly pricing creates a deadweight loss referring to potential gains that went neither to the monopolist nor to consumers. Deadweight loss is the cost to society because it is inefficient. Given the presence of this deadweight loss, the combined surplus (or wealth) for the monopolist and consumers is necessarily less than the total surplus obtained by consumers by perfect competition. Where efficiency

12240-408: The railway non-functional, but the railway has been restored up to Dondo and Malanje . Monopoly A monopoly (from Greek μόνος , mónos , 'single, alone' and πωλεῖν , pōleîn , 'to sell') is a market in which one person or company is the only supplier of a particular good or service. A monopoly is characterized by a lack of economic competition to produce

12360-490: The revenue maximizing quantity for the monopoly is 12.5 units and the revenue-maximizing price is 25. A company with a monopoly does not experience price pressure from competitors, although it may experience pricing pressure from potential competition. If a company increases prices too much, then others may enter the market if they are able to provide the same good, or a substitute, at a lesser price. The idea that monopolies in markets with easy entry need not be regulated against

12480-447: The rise of deep social inequalities due to large-scale migration of civil war refugees from other Angolan regions. For decades, Luanda's facilities were not adequately expanded to handle this huge increase in the city's population. After 2002, with the end of the civil war and high economic growth rates fuelled by the wealth provided by the increasing oil and diamond production, major reconstruction started. Luanda has also become one of

12600-412: The risk of losing their monopoly to new entrants. This is likely to happen when a market's barriers to entry are low. It might also be because of the availability in the longer term of substitutes in other markets. For example, a canal monopoly, while worth a great deal during the late 18th century United Kingdom, was worth much less during the late 19th century because of the introduction of railways as

12720-445: The same time continue their business. ...Monopoly, besides, is a great enemy to good management. – Adam Smith (1776), The Wealth of Nations According to the standard model, in which a monopolist sets a single price for all consumers, the monopolist will sell a lesser quantity of goods at a higher price than would companies by perfect competition . Because the monopolist ultimately forgoes transactions with consumers who value

12840-406: The seller divides the consumers into different groups according to their willingness to pay as measured by their price elasticity of demand. Each group of consumers effectively becomes a separate market with its own demand curve and marginal revenue curve. The firm then attempts to maximize profits in each segment by equating MR and MC, Generally the company charges a higher price to the group with

12960-638: The student may have been able to purchase at the Ethiopian price. Similarly, a wealthy student in Ethiopia may be able to or willing to buy at the U.S. price, though naturally would hide such a fact from the monopolist so as to pay the reduced third world price. These are deadweight losses and decrease a monopolist's profits. Deadweight loss is considered detrimental to society and market participation. As such, monopolists have substantial economic interest in improving their market information and market segmenting . There

13080-442: The team. The three basic forms of price discrimination are first, second and third degree price discrimination. In first degree price discrimination the company charges the maximum price each customer is willing to pay. The maximum price a consumer is willing to pay for a unit of the good is the reservation price. Thus for each unit the seller tries to set the price equal to the consumer's reservation price. Direct information about

13200-420: The throne in Ndongo. After five years, she had to flee from Portuguese troops to Matamba. She became queen of Matamba, a kingdom which was traditionally led by women, and turned it into the most powerful state in the region, and a big exporter of slaves. Matamba, and neighboring Kasanje, had monopolies in the slave trade, and started falling apart in the 19th century when this trade lost in importance. The rise of

13320-535: The war, but its infrastructure was inadequate to handle the increase. This also caused the exacerbation of slums, or musseques , around Luanda. In the 21st century, the city has been undergoing a major reconstruction. Many new large developments are taking place that will alter its cityscape significantly. Industries present in the city include the processing of agricultural products, beverage production, textile, cement, new car assembly plants, construction materials, plastics, metallurgy, cigarettes and shoes. The city

13440-486: The west, Akwaluanda (also referred to as Ambundu ) developed from interactions between Kimbundu speakers and other ethnic groups in the region. Spoken in Ambacca in the east, Ambakista developed from interactions between Kimbundu speakers and Portuguese traders. The exact origin of the Mbundu people is unknown, but there are some oral traditions that were passed down through the generations. The first oral tradition says that

13560-493: The world's most expensive cities. The central government supposedly allocates funds to all regions of the country, but the capital region receives the bulk of these funds. Since the end of the Angolan Civil War (1971–2002), stability has been widespread in the country, and major reconstruction has been going on since 2002 in those parts of the country that were damaged during the civil war. Luanda has been of major concern because its population had multiplied and had far outgrown

13680-574: Was born by this time. In 1889, Governor Brito Capelo opened the gates of an aqueduct which supplied the city with water, a formerly scarce resource, laying the foundation for major growth. Throughout Portugal's dictatorship, known as the Estado Novo , Luanda grew from a town of 61,208 with 14.6% of those inhabitants being white in 1940, to a wealthy cosmopolitan major city of 475,328 in 1970 with 124,814 Europeans (26.3%) and around 50,000 mixed race inhabitants (10.5%). Like most of Portuguese Angola ,

13800-550: Was founded in January 1576 as São Paulo da Assunção de Loanda by Portuguese explorer Paulo Dias de Novais , being occasionally called "Leonda" or "St Paul de Leonda" by non-portuguese sources. The city served as the centre of the slave trade to Brazil before the institution was prohibited. At the start of the Angolan Civil War in 1975, most of the white Portuguese left as refugees, principally migrating to Portugal. Luanda's population increased greatly from internal refugees fleeing

13920-460: Was inherited matrilineally, and the descent system was matrilineal as well. Boys used to go and live in the villages of their maternal uncles, so as to preserve a matrilinear core to the village. Theoretically, the lineage was projected onto status, instead of individuals, which gave the system some flexibility. The latter feature is not found with neighbouring matrilineal peoples, like the Ovimbundu to

14040-735: Was noted in Luanda until the Independence of Brazil in 1822. In the 19th century, still under Portuguese rule, Luanda experienced a major economic revolution. The slave trade was abolished in 1836, and in 1844, Angola's ports were opened to foreign shipping. By 1850, Luanda was one of the greatest and most developed Portuguese cities in the vast Portuguese Empire outside Continental Portugal , full of trading companies, exporting (together with Benguela ) palm and peanut oil , wax, copal , timber, ivory, cotton, coffee, and cocoa , among many other products. Maize, tobacco, dried meat , and cassava flour are also produced locally. The Angolan bourgeoisie

14160-474: Was repeatedly damaged during the Angolan Civil War of 1975–2002. Luanda has an excellent natural harbour; the chief exports are coffee , cotton , sugar , diamonds , iron , and salt . The city also has a thriving building industry, an effect of the nationwide economic boom experienced since 2002, when political stability returned with the end of the civil war. Economic growth is largely supported by oil extraction activities, although great diversification

14280-431: Was the main host city for the matches of the 2010 African Cup of Nations . Portuguese explorer Paulo Dias de Novais founded Luanda on 25 January 1576 as "São Paulo da Assumpção de Loanda". He had brought one hundred families of settlers and four hundred soldiers. Most of the Portuguese community lived within the fort. Several sources from as early as the 17th century called the city "St. Paul de Leonda". In 1618,

14400-579: Was used in the 1914 book Social Economics written by Friedrich von Wieser. As mentioned, government regulations are frequently used with natural monopolies to help control prices. An example that can illustrate this can be found when looking at the United States Postal Service, which has a monopoly over types of mail. According to Wieser, the idea of a competitive market within the postal industry would lead to extreme prices and unnecessary spending, and this highlighted why government regulation in

#514485