Analysis Of Illegal Hank Faces Everything

Companies attempt to dominate their respective markets. This is done in the hopes of profit maximization. In order to dominate their market, firms compete in order to subvert their competition. One of the preferred methods of competition is to engage in price wars. By doing so, they may underprice their competition in the hopes of running them into the ground. Although this may be effective in a sense of deterring and possibly eliminating competition, it may also result in a loss in profits amongst any firms that have taken part. It should also be noted that although they are illegal, collusion between firms guarantee a profit. Though illegal Hank Faces Everything demonstrates the benefits of collusion and firm cooperation. In the same episode of King of The Hill the viewer is exposed to the concept of individual optimization.

Although the concept of optimizing individuals advocates the idea that individuals will always undertake the action, which benefits them most, it is shown by Lucky that people don’t necessarily follow logic and do so. This is seen through his decision to wait weeks in front of both of a theater’s lines in order to be first in line and attain his perfect sized t-shirt size and seating. He wasted his time because there wasn’t any demand for the tickets and he wasted a lot of time. The cost of his wasted time was therefore very high. There wasn’t much to gain and he lost the opportunity to use his time for something else. As days would pass, no demand for the tickets other than his own presented itself; he therefore wasted resources and didn’t further his chances of acquiring his ends. He didn’t adapt or learn from the situation as it unfolded. This differs dramatically from the adaptive behavior that the prop...

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This course encompasses and transcends greater boundaries than those of a mere classroom, as economics truly affect varying and diverging aspects of our daily lives. This may be vague and easy to ignore at first, but with in depth analysis, it is easy to draw connections between our economies and our personal lives. This essay, along with the application of the habits of mind can truly make for a substantial, deeper understanding of the material presented. The greatest connection is that which on may make between concept and observation. These skills and insight can then lead to expanded application, and further use in the future. All in all, by watching all four propane dealers’ price war, leading them to collude and eventually form a cartel in order to maximize profit, the causes, effects, and outcomes of oligopolies are clearly demonstrates.