Superior Good

Examples of Superior Good in the following topics:

• Income Elasticity of Demand

  • A positive income elasticity is associated with normal goods.
  • This is typical of a luxury or superior good.
  • This is characteristic of a necessary good.
  • These are called sticky goods.
  • This is an inferior good (all other goods are normal goods).

• Demand Function

  • These Giffen goods rarely occur.
  • An individual's demand function for a good (Good X) might be written:
  • A superior good is a special case of the normal good.
  • Goods may be related as substitutes (consumers perceive the goods as substitutes) or compliments (consumers use the goods together).
  • An increase in the price of good Z will reduce the quantity demanded for good Z.

• Reasons for Trade

  • Countries benefit when they specialize in producing goods for which they have a comparative advantage and engage in trade for other goods.
  • International trade is the exchange of capital, goods, and services across international borders or territories.
  • In other words, each nation should produce goods for which its domestic opportunity costs are lower than the domestic opportunity costs of other nations and exchange those goods for products that have higher domestic opportunity costs compared to other nations .
  • Japan may be able to produce technological goods of superior quality, but it may lack many natural resources.
  • Countries benefit from producing goods in which they have comparative advantage and trading them for goods in which other countries have the comparative advantage.

• Defining Monopoly

  • A monopoly exists when a specific person or enterprise is the only supplier of a particular good.
  • Price maker: the monopoly decides the price of the good or product being sold.
  • Single seller: in a monopoly one seller produces all of the output for a good or service.
  • Price discrimination: in a monopoly the firm can change the price and quantity of the good or service.
  • In an elastic market the firm will sell a high quantity of the good if the price is less.

• Market Exchange and Efficiency

  • The individuals exchange goods that are characterized by nonattenuated property rights.
  • The benefits and cost associated with the production or consumption of any good falls only on the agents engaged in the contract or transaction.
  • Therefore, any voluntary exchange must lead to Pareto superior results.
  • Voluntary markets of goods with nonattenuated property rights are consistent with the Utilitarian Ethic and Pareto Efficiency.

• A Study of Process

  • Operations management transforms inputs (labor, capital) into outputs (goods and services) that provide added value to customers.
  • The 3M Company is a good example of the strategic importance of transforming inputs into outputs that provide competitive advantage in the marketplace.
  • Controlling the transformation process makes it extremely difficult for competitors to produce tape of the same quality as Magic Tape, allowing 3M to reap significant profits from this superior product.
  • The 3M Company is a good example of the strategic importance of transforming inputs into outputs that provide competitive advantage in the marketplace.
  • Controlling the transformation process makes it extremely difficult for competitors to produce tape of the same quality as Magic Tape, allowing 3M to reap significant profits from this superior product.

• Social Identity Theory

  • There is pretty good evidence that to deal effectively with the world we need to feel good about ourselves.
  • For example, people from some Middle Eastern Islamic countries might regard their country as inferior to the West in terms of economic and technological advancement but might regard their way of life as being morally superior.
  • Intriguingly, the notion that inferior or "underdog" groups are hyper-motivated to succeed against superior groups turns out not to be true, generally.
  • This makes sense when framed as a status issue: the superior group has more to lose if it is defeated by an inferior team while the inferior team, if it loses, has not lost anything but rather has affirmed the existing social order.

• The role of the astute manager

  • For the past fi ve years, companies considered to have good social, environmentaland governance policies have outperformed the MSCI world index of stocks by 25%.
  • Serving internal customers (employees, colleagues, suppliers, contractors, shareholders and other stakeholders) includes finding good people, educating (training) them, and giving them what they need so that they know the needs of the business, the business knows their requirements, and the two can serve each other.
  • For example, if an employee approaches a manager with a sustainable cost-saving idea and the manager says ‘no', the manager is probably serving his or her ego (few words show that a manager has superiority over a subordinate than the word ‘no').

• Oculomotor (III) Nerve

  • It enters the orbit via the superior orbital fissure and controls most of the eye's movements, including constriction of the pupil and maintaining an open eyelid by innervating the levator palpebrae superiors muscle.
  • The oculomotor nucleus originates at the level of the superior colliculus.
  • The muscles it controls are the striated muscle in the levator palpebrae superioris and all extraocular muscles except for the superior oblique muscle and the lateral rectus muscle.
  • It then divides into two branches that enter the orbit through the superior orbital fissure, between the two heads of the lateral rectus (a muscle on the lateral side of the eyeball in the orbit).
  • Here the nerve is placed below the trochlear nerve and the frontal and lacrimal branches of the ophthalmic nerve, while the nasociliary nerve is placed between its two rami (the superior and inferior branch of oculomotor nerve).

• Animism

  • Unlike supernatural forces, animist spirits may be inherently good or evil.
  • Because humans are considered a part of nature, rather than superior to, or separate from it, animists see themselves on roughly equal footing with other animals, plants, and natural forces, and subsequently have a moral imperative to treat these agents with respect.