Learning Team B feels that there are government programs that do assist in their local towns to attract more business and bring in employees. Our local towns are developing programs to manage solid waste activities, tax incentives, and low interest loans that will increase business and bring in new employees and retain employees.
Many cities and towns offer tax incentives for companies to relocate to their area. They offer these incentives so the businesses will remain in or relocate to their area. The people will follow the jobs. Employed people pay taxes, such as property, income, and sales taxes, which generates additional revenue for the government. Those taxes, in the long-run, outweigh the missed revenue from the tax incentives offered to the company.
In Flagstaff, AZ the city waives the property taxes for Purina. The City of Prescott offered huge tax incentives for a company to relocate their headquarters. The tax breaks stipulated that they had to employ so many people, a certain percentage of those jobs were full-time, and a certain percentage were considered “high paying”. I’ve seen commercials for the state of Michigan, promoting their business-friendliness to entice companies.
The one thing the government is doing for our counties here in Tennessee is working on solid waste manage activities. The Department of Environment and Conservation Commission and Governor Bill Haslam has announced that there will be nearly $304,000 in grants going towards the project, (South Central Tennessee Development District, 2013).
There will also be technical training for the upkeep and management of the sewer systems given to present and future employees. There is also expansions of Integrity Tool & Mold Inc. and Jack Daniels Distillery that was announced by the Economic and Community Development Commission and Governor Bill Haslam that will open up a total of
In southeastern Connecticut there are some things that the government is doing to assist for instance, to entice businesses the government provides rent subsidies. Another program called Enterprise Zone Program provides tax incentives for business moving to the area. Also, the same program allows for property owners to be tax exempt for seven years of increased taxes if they do improvements on commercial and residential structures.
The government also has loan programs to attract more businesses to the area. For instance, a loan that provides low interest loans for businesses and a loan that provides financial assistance to owners of commercial properties (“City Of New London”, 2013). Finally, there is a program that even provide a loan program to target small business owners. Team Activity Two
Market structures influences how firms behave by pricing, barriers of entry, supply, and competition. Learning Team B evaluated their firms and determined that our firms best fit a market structure of perfect competition and oligopoly. Learning Team B will evaluate why we feel that our firms fit into those market structures.
last job was Travel Centers of America. It was a fueling stop for travelers and truckers. It had showers for the truckers (and anyone else), many products that might interest truckers, food and drinks, and all the other regular things that one might find in a convenience store. It also had Popeye’s, Subway, and a regular restaurant for people who want a sit down for a home cooked meal.
She was a cashier that took care of cashing out customers and running checks for truckers, giving out showers, faxes, and whatever else her job was scheduled for that day. She would say that the market structure was perfect competition. They were the only truck stop that offered overnight parking for the truckers in that area. They were not the only truck stop selling diesel but our prices changed almost every day to keep competition down.
The automotive sales industry is an oligopoly. There are a few dealerships in our town. They must anticipate what the other dealers will do when they make a move. For instance, if his dealership offered more for your trade-in, most likely the other dealerships would try to match it. If they have a big sale, we will try to match their prices. It is an example of implicit price collusion.
There is also a contestable market model because many barriers exist. You have to have the vehicles to sell, which is very pricey. If you want to offer new cars, you must have a franchisee agreement with the manufacturer, which is limited by geography, price, etc.
The company currently works for is a large pharmaceutical firm. Her firm is one of the largest pharmaceuticals that has produced and manufactured drug products to help millions across the globe. The market structure for the firm is oligopoly because it has few large firms and significant barriers to market entry.
There are few more firms than just Pfizer that controls the market with the selling of similar drugs that help people and other products. Also, each firm has differentiated branded products. In an oligopoly firms have high prices and profits and heavy product differentiation leading to high concentration ratios.
City of New London. (2013). Retrieved from http://ci.new-london.ct.us/content/33/default.aspx Gov. Haslam Announces Waste Grants. Retrieved August 30, 2013 from:
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