Social cost in neoclassical economics is the sum of the private costs resulting from a transaction and the costs imposed on the consumers as a consequence of being exposed to the transaction for which they are not compensated or charged. In other words it is the sum of external costs. Private costs refer to direct costs to the producer for producing the service. Social cost includes these private costs and the additional costs associated with the production of the good for which are not accounted for by the free market. Mathematically, social marginal cost is the sum of the external costs. For example, when selling a glass of lemonade at a lemonade stand, the private costs involved in this transaction are the costs of the lemons and the sugar and the water that are ingredients to the lemonade, the opportunity cost of the labor to combine them into lemonade, as well as any transaction costs, such as walking to the stand. An example of marginal damages associated with social costs of driving includes wear and tear and the decreased quality of life due to drunks driving or impatience.a large number of people displaced from their homes and localities due to construction work.
The alternative to the above neoclassical definition is provided by the heterodox economics theory of social costs by K. William Kapp. Social costs are here defined as the socialized portion of the total costs of production, i.e. the costs which businesses shift to society in their attempts to increase their profits. According to the International Monetary Fund, "there are differences between private costs and the costs to the society as a whole". In a situation where there are positive social costs, it means that the first of the Fundamental theorems of welfare economics failed in that relying on private markets for price and quantity lead to an inefficient outcome. Market failures or situations in which consumption and production decisions made by individuals or firms result in indirect costs i.e. have an effect on parties external to the transaction are one of the most common reasons for government intervention. In economics, these indirect costs which lead to inefficiencies in the market and result in a difference between the private costs and the social costs are called externalities.
Thus, social costs are the costs pertaining to the transaction costs to the society as a whole. Social costs are easier to think about in marginal terms i.e. marginal social cost. Marginal social cost refers to the total costs that the society pays for the production of an extra unit of the good or service in question. Mathematically, this can be represented by Marginal Social Cost = Marginal Private Cost + Marginal External Costs. Social costs can be of two types -- Negative Production Externality and Positive Production Externality. Negative Production Externality refers to a situation in which marginal damages are social costs to society that result in Marginal Social Cost being greater than the Marginal Private Cost i.e. MSC > MPC. Intuitively, this refers to a situation in which the production of the firm reduces the well-being of the people in the society who are not compensated for the same. For example, steel production results in a negative externality because of the marginal damages pertaining to pollution and negative environmental effects.
Steelmaking results in indirect costs as a result of emission of pollutants, lower air quality, etc. For example, these indirect costs might include the health of a homeowner near the production unit and higher healthcare costs which have not been factored into the free market price and quantity. Given that the producer does not bear the burden of these costs, they are not passed down to the end user thus creating a situation where MSC > MPC. This example can be better elucidated with a diagram. Profit-maximizing organizations in a free market will set output at QMarket where marginal private costs is equal to marginal benefit. Intuitively, this is the point on the diagram where the private supply curve and consumer demand curve intersect i.e. where consumer demand meets firm supply. This results in a competitive market equilibrium price of pMarket. In the presence of a negative production externality, the private marginal cost increases i.e. shifted upwards to the left by marginal damages to yield the marginal social curve.
The star in the diagram, or the point where the new supply curve and the consumer demand intersect, represents the optimum quantity Qoptimum and price. At this social optimum, the price paid by the consumer is p*consumer and the price received by the producers is p*producer. High positive social costs, in the form of marginal damages, lead to an over-production. In the diagram, there is overproduction at QMarket - Qoptimum with an associated deadweight loss of the shaded triangle. One of the public sector remedies for internalizing externalities is a corrective tax. According to neoclassical economist Arthur Pigou, in order to correct this market failure the government should levy a tax which equals to marginal damages per unit; this would increase the firm's private marginal so that SMC = PMC. The prospect of government intervention in regards to correcting an externality has been hotly debated. Economists like Ronald Coase contend that the market can internalize an externality and provide for an external outcome through bargaining among affected parties.
For example, in the above-mentioned case, the homeowners could negotiate with the pollution firm and strike a deal in which they would pay the firm not to pollute or to charge the firm for pollution. According to
Visa Inc. is an American multinational financial services corporation headquartered in Foster City, United States. It facilitates electronic funds transfers throughout the world, most through Visa-branded credit cards, gift cards, debit cards. Visa does not extend credit or set rates and fees for consumers. In 2015, the Nilson Report, a publication that tracks the credit card industry, found that Visa's global network processed 100 billion transactions during 2014 with a total volume of US$6.8 trillion. Visa has operations across all continents worldwide with the exception of Antarctica. Nearly all Visa transactions worldwide are processed through VisaNet at one of four secure facilities; the data centers are located in Ashburn, Highlands Ranch, Colorado and Singapore. The data centers are secured against natural disasters and terrorism; every transaction is checked past 500 variables including 100 fraud-detection parameters—such as the location and spending habits of the customer and the merchant's location – before being accepted.
Visa is the world's second-largest card payment organization, after being surpassed by China UnionPay in 2015, based on annual value of card payments transacted and number of issued cards. Because UnionPay's size is based on the size of its domestic market, Visa is dominant in the rest of the world outside of China, with 50% market share of global card payments minus China. In mid-September 1958, Bank of America launched its BankAmericard credit card program in Fresno, with an initial mass mailing of 60,000 unsolicited credit cards; the original idea was the brainchild of BofA's in-house product development think tank, the Customer Services Research Group, its leader, Joseph P. Williams. Williams convinced senior BofA executives in 1956 to let him pursue what became the world's first successful mass mailing of unsolicited credit cards to a large population. Williams' pioneering accomplishment was that he brought about the successful implementation of the all-purpose credit card, not in coming up with the idea.
By the mid-1950s, the typical middle-class American maintained revolving credit accounts with several different merchants, inefficient and inconvenient due to the need to carry so many cards and pay so many separate bills each month. The need for a unified financial instrument was evident to the American financial services industry, but no one could figure out how to do it. There were charge cards like Diners Club, "by the mid-1950s, there had been at least a dozen attempts to create an all-purpose credit card." However, these prior attempts had been carried out by small banks which lacked the resources to make them work. Williams and his team studied these failures and believed they could avoid replicating those banks' mistakes. Fresno was selected for its population of 250,000, BofA's market share of that population, relative isolation, to control public relations damage in case the project failed; the 1958 test at first went smoothly, but BofA panicked when it confirmed rumors that another bank was about to initiate its own drop in San Francisco, BofA's home market.
By March 1959, drops began in San Sacramento. However, the program was riddled with problems, as Williams had been too earnest and trusting in his belief in the basic goodness of the bank's customers, he resigned in December 1959. 22% of accounts were delinquent, not the 4% expected, police departments around the state were confronted by numerous incidents of the brand new crime of credit card fraud. Both politicians and journalists joined the general uproar against Bank of America and its newfangled credit card when it was pointed out that the cardholder agreement held customers liable for all charges those resulting from fraud. BofA lost over $8.8 million on the launch of BankAmericard, but when the full cost of advertising and overhead was included, the bank's actual loss was around $20 million. However, after Williams and some of his closest associates left, BofA management realized that BankAmericard was salvageable, they conducted a "massive effort" to clean up after Williams, imposed proper financial controls, published an open letter to 3 million households across the state apologizing for the credit card fraud and other issues their card raised, were able to make the new financial instrument work.
The original goal of BofA was to offer the BankAmericard product across California, but in 1966, BofA began to sign licensing agreements with a group of banks outside of California, in response to a new competitor, Master Charge, which had be
Woolworths Group (Australia)
Woolworths Group Limited is a major Australian company with extensive retail interest throughout Australia and New Zealand. It is the second largest company in Australia by revenue, after Perth-based retail-focused conglomerate Wesfarmers, the second largest in New Zealand. In addition, Woolworths Group is the largest takeaway liquor retailer in Australia, the largest hotel and gaming poker machine operator in Australia, was the 19th largest retailer in the world in 2008. Despite similar names, Woolworths Group has no affiliation with the F. W. Woolworth Company in the United States, the now-defunct Woolworths Group in the UK or the South African chain of retail stores, Woolworths Holdings Limited, its main operations include supermarkets, liquor retailing and pubs under the Australian Leisure and Hospitality Group umbrella, discount department stores under the Big W name in Australia. The company announced a loss of $1.235 billion for the 2016 financial year on 25 August 2016, the biggest in more than 20 years since it has been publicly listed on the ASX due to more than $2 billion in write-downs of the failed Masters business and losses in the Big W business.
Woolworths opened its first store, the Woolworths Stupendous Bargain Basement, in the old Imperial Arcade Pitt Street, where Westfield Sydney now stands, on 5 December 1924. Its nominal capital was just £185,000 and although 85,000 shares were offered to the public, only 81,707 shares were subscribed for by 619 people, including the five founders – Percy Christmas, Stanley Chatterton, Cecil Scott Waine, George Creed and Ernest Williams. One of the foundation investors was Preston Lanchester Gowing, the chairman of Gowings; the name on the draft prospectus drawn up by Cecil Scott Waine was "Wallworths Bazaar" – a play on the F. W. Woolworth name. Moreover, according to Ernest Robert Williams, Percy Christmas dared him to register the name Woolworths instead, which he succeeded in doing after finding out the name was available for use in New South Wales. Accordingly, Woolworths Ltd in Australia has no connection with the F. W. Woolworth Company in the United States, nor the Woolworths Group of UK.
It has no connection to the Woolworths Group in South Africa. The new Woolworths store was innovative. Christmas set up a New Zealand general merchandise operation in Wellington in 1929. Woolworths New Zealand opened its first food store in Auckland in 1956, supermarkets in 1971. Woolworths New Zealand was sold to the company, now Lion Nathan in 1979 sold to Dairy Farm International in 1990, now owned by Progressive Enterprises, a subsidiary of Foodland Associated Limited of Australia. In 2005 Woolworths Limited and Metcash Holdings agreed to purchase a demerged Foodland, Progressive Enterprises and 23 of Foodland's Action supermarkets came under Woolworths' ownership; this acquisition brought total store numbers in Australia to near 750. During the late 1920s, the company grew, with a second store in Sydney and stores in Brisbane and Perth, it grew further despite the depression, until by the end of 1933 it had 23 stores. In 1933 the first store in Melbourne was opened. On 1 April 1936 the company bought eight stores from Edments Ltd and opened its first store in Adelaide.
The original Imperial Arcade store was moved to larger premises in Her Majesty's Arcade, a short distance along Pitt Street near the Market Street corner. World War II slowed the growth of Woolworths and the Australian and United States military used Woolworths' warehouses in Sydney for storage. After the war expansion was rapid and in 1955 Woolworths opened its 200th store, in the Civic Centre in Canberra. At this point Woolworths was still a variety chain and had not moved into the food sector that uses the "Woolworths" brand today; this move began in 1955. The company bought the Rockmans chain of women's clothing stores in 1960. In the 1970s, the company started to open Big W discount department stores and the slow removal of many variety products from the supermarket and variety stores began; this process finished in 1989 when the last of the Woolworths Variety stores was closed and the "Family Centres" were split into separate Big W and Woolworths supermarket stores. Woolworths acquired the Dick Smith Electronics consumer electronics chain in 1981 and expanded the consumer electronics arm of its business with the purchase of the Tandy chain in Australia from InterTan Inc in 2001.
The company sold the Rockmans chain in 2000, the Dick Smith Electronics chain in 2012. In 1985, the acquisition of the 126 Safeway stores in eastern Australia made Woolworths the largest food retailer in Australia. Safeway stores were in Victoria, New South Wales and Queensland and included Food Barns in Queensland and northern New South Wales; the stores were acquired following an agreement whereby Safeway acquired a 19.99% interest in Woolworths Limited. Woolworths and Safeway supermarkets in Victoria traded under the Safeway brand, Safeway's Food Barns in Queensland and New South Wales became part of Woolworths. Around this time, the supermarket chain had run eight small supermarket chains including the Queensland-based Food For Less and the Sydney-based Flemings, both of which survive. In 1989, the company was acquired by Industrial Equity Limited, in turn one-third owned by The Adelaide Steamship Company, David Jones Limited and Tooth & Co, it was a wholly own
Joseph Louis François Bertrand was a French mathematician who worked in the fields of number theory, differential geometry, probability theory and thermodynamics. Bertrand was a professor at the École Collège de France, he was a member of the Paris Academy of Sciences and was its permanent secretary for twenty-six years. He was the son of physician Alexandre Jacques François Bertrand and the brother of archaeologist Alexandre Bertrand, his father died when Joseph was only nine years old, but that did not stand in his way of learning and understanding algebraic and elementary geometric concepts, he could speak Latin fluently, all when he was of the same age of nine. At eleven years old he attended the course of the École Polytechnique as an auditor. From age eleven to seventeen, he obtained two bachelor's degrees, a license and a PhD with a thesis on the mathematical theory of electricity and is admitted first to the 1839 entrance examination of the École Polytechnique, he conjectured, in 1845, that there is at least one prime between n and 2n − 2 for every n > 3.
Chebyshev proved this conjecture, now called Bertrand's postulate, in 1850. He was famous for a paradox in the field of probability, now known as Bertrand's Paradox. There is another paradox in game theory, named after him, called the Bertrand Paradox. In 1849, he was the first to define real numbers using. Bertrand translated into French Carl Friedrich Gauss's work on the theory of errors and the method of least squares. In the field of economics he reviewed the work on oligopoly theory the Cournot Competition Model of French mathematician Antoine Augustin Cournot, his Bertrand Competition Model argued that Cournot had reached a misleading conclusion, he reworked it using prices rather than quantities as the strategic variables, thus showing that the equilibrium price was the competitive price. His book Thermodynamique points out in Chapter XII, that thermodynamic entropy and temperature are only defined for reversible processes, he was one of the first people to point this out. In 1858 he was elected a foreign member of the Royal Swedish Academy of Sciences.
Traité de calcul différentiel et de calcul intégral Rapport sur les progrès les plus récents de l'analyse mathématique Traité d'arithmétique Thermodynamique Méthode des moindres carrés Leçons sur la théorie mathématique de l'électricité / professées au Collège de France Calcul des probabilités Arago et sa vie scientifique Blaise Pascal Les fondateurs de l'astronomie moderne: Copernic, Tycho Brahé, Képler, Galilée, Newton Bertrand paradox Bertrand paradox Bertrand's box paradox Bertrand's theorem Bertrand's ballot theorem Bertrand–Edgeworth model Struik, D. J.. "Bertrand, Joseph Louis Francois". Dictionary of Scientific Biography. 2. New York: Charles Scribner's Sons. Pp. 87–89. ISBN 978-0-684-10114-9. Bertrand, Joseph Louis Francois Joseph Louis François Bertrand References for Joseph Bertrand Joseph Louis François Bertrand Works by Joseph Bertrand at Project Gutenberg Works by or about Joseph Bertrand at Internet Archive Author profile in the database zbMATH
United States Department of Justice
The United States Department of Justice known as the Justice Department, is a federal executive department of the U. S. government, responsible for the enforcement of the law and administration of justice in the United States, equivalent to the justice or interior ministries of other countries. The department was formed in 1870 during the Ulysses S. Grant administration; the Department of Justice administers several federal law enforcement agencies including the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco and Explosives, the Drug Enforcement Administration. The department is responsible for investigating instances of financial fraud, representing the United States government in legal matters, running the federal prison system; the department is responsible for reviewing the conduct of local law enforcement as directed by the Violent Crime Control and Law Enforcement Act of 1994. The department is headed by the United States Attorney General, nominated by the President and confirmed by the Senate and is a member of the Cabinet.
The current Attorney General is William Barr. The office of the Attorney General was established by the Judiciary Act of 1789 as a part-time job for one person, but grew with the bureaucracy. At one time, the Attorney General gave legal advice to the U. S. Congress as well as the President, but in 1819 the Attorney General began advising Congress alone to ensure a manageable workload; until March 3, 1853, the salary of the Attorney General was set by statute at less than the amount paid to other Cabinet members. Early Attorneys General supplemented their salaries by running private law practices arguing cases before the courts as attorneys for paying litigants. Following unsuccessful efforts to make Attorney General a full-time job, in 1869, the U. S. House Committee on the Judiciary, led by Congressman William Lawrence, conducted an inquiry into the creation of a "law department" headed by the Attorney General and composed of the various department solicitors and United States attorneys. On February 19, 1868, Lawrence introduced a bill in Congress to create the Department of Justice.
President Ulysses S. Grant signed the bill into law on June 22, 1870. Grant appointed Amos T. Akerman as Attorney General and Benjamin H. Bristow as America's first Solicitor General the same week that Congress created the Department of Justice; the Department's immediate function was to preserve civil rights. It set about fighting against domestic terrorist groups, using both violence and litigation to oppose the 13th, 14th, 15th Amendments to the Constitution. Both Akerman and Bristow used the Department of Justice to vigorously prosecute Ku Klux Klan members in the early 1870s. In the first few years of Grant's first term in office there were 1000 indictments against Klan members with over 550 convictions from the Department of Justice. By 1871, there were 3000 indictments and 600 convictions with most only serving brief sentences while the ringleaders were imprisoned for up to five years in the federal penitentiary in Albany, New York; the result was a dramatic decrease in violence in the South.
Akerman gave credit to Grant and told a friend that no one was "better" or "stronger" than Grant when it came to prosecuting terrorists. George H. Williams, who succeeded Akerman in December 1871, continued to prosecute the Klan throughout 1872 until the spring of 1873 during Grant's second term in office. Williams placed a moratorium on Klan prosecutions because the Justice Department, inundated by cases involving the Klan, did not have the manpower to continue prosecutions; the "Act to Establish the Department of Justice" drastically increased the Attorney General's responsibilities to include the supervision of all United States Attorneys under the Department of the Interior, the prosecution of all federal crimes, the representation of the United States in all court actions, barring the use of private attorneys by the federal government. The law created the office of Solicitor General to supervise and conduct government litigation in the Supreme Court of the United States. With the passage of the Interstate Commerce Act in 1887, the federal government took on some law enforcement responsibilities, the Department of Justice tasked with performing these.
In 1884, control of federal prisons was transferred to the new department, from the Department of Interior. New facilities were built, including the penitentiary at Leavenworth in 1895, a facility for women located in West Virginia, at Alderson was established in 1924. In 1933, President Franklin D. Roosevelt issued an executive order which gave the Department of Justice responsibility for the "functions of prosecuting in the courts of the United States claims and demands by, offsenses against, the Government of the United States, of defending claims and demands against the Government, of supervising the work of United States attorneys and clerks in connection therewith, now exercised by any agency or officer..." The U. S. Department of Justice building was completed in 1935 from a design by Milton Bennett Medary. Upon Medary's death in 1929, the other partners of his Philadelphia firm Zantzinger and Medary took over the project. On a lot bordered by Constitution and Pennsylvania Avenues and Ninth and Tenth Streets, Northwest, it holds over 1,000,000 square feet of space.
The sculptor C. Paul Jennewein served as overall design consultant for the entire building, contributing more than 50 separate sculptural elements inside and outside. Various efforts, none successful, have been made to determine the original intended meaning of the Latin motto appearing on the Department of Justice s
Apple Inc. is an American multinational technology company headquartered in Cupertino, that designs and sells consumer electronics, computer software, online services. It is considered one of the Big Four of technology along with Amazon and Facebook; the company's hardware products include the iPhone smartphone, the iPad tablet computer, the Mac personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, the HomePod smart speaker. Apple's software includes the macOS and iOS operating systems, the iTunes media player, the Safari web browser, the iLife and iWork creativity and productivity suites, as well as professional applications like Final Cut Pro, Logic Pro, Xcode, its online services include the iTunes Store, the iOS App Store, Mac App Store, Apple Music, Apple TV+, iMessage, iCloud. Other services include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, Apple Card. Apple was founded by Steve Jobs, Steve Wozniak, Ronald Wayne in April 1976 to develop and sell Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days.
It was incorporated as Apple Computer, Inc. in January 1977, sales of its computers, including the Apple II, grew quickly. Within a few years and Wozniak had hired a staff of computer designers and had a production line. Apple went public in 1980 to instant financial success. Over the next few years, Apple shipped new computers featuring innovative graphical user interfaces, such as the original Macintosh in 1984, Apple's marketing advertisements for its products received widespread critical acclaim. However, the high price of its products and limited application library caused problems, as did power struggles between executives. In 1985, Wozniak departed Apple amicably and remained an honorary employee, while Jobs and others resigned to found NeXT; as the market for personal computers expanded and evolved through the 1990s, Apple lost market share to the lower-priced duopoly of Microsoft Windows on Intel PC clones. The board recruited CEO Gil Amelio to what would be a 500-day charge for him to rehabilitate the financially troubled company—reshaping it with layoffs, executive restructuring, product focus.
In 1997, he led Apple to buy NeXT, solving the failed operating system strategy and bringing Jobs back. Jobs pensively regained leadership status, becoming CEO in 2000. Apple swiftly returned to profitability under the revitalizing Think different campaign, as he rebuilt Apple's status by launching the iMac in 1998, opening the retail chain of Apple Stores in 2001, acquiring numerous companies to broaden the software portfolio. In January 2007, Jobs renamed the company Apple Inc. reflecting its shifted focus toward consumer electronics, launched the iPhone to great critical acclaim and financial success. In August 2011, Jobs resigned as CEO due to health complications, Tim Cook became the new CEO. Two months Jobs died, marking the end of an era for the company. Apple is well known for its size and revenues, its worldwide annual revenue totaled $265 billion for the 2018 fiscal year. Apple is the world's largest information technology company by revenue and the world's third-largest mobile phone manufacturer after Samsung and Huawei.
In August 2018, Apple became the first public U. S. company to be valued at over $1 trillion. The company employs 123,000 full-time employees and maintains 504 retail stores in 24 countries as of 2018, it operates the iTunes Store, the world's largest music retailer. As of January 2018, more than 1.3 billion Apple products are in use worldwide. The company has a high level of brand loyalty and is ranked as the world's most valuable brand. However, Apple receives significant criticism regarding the labor practices of its contractors, its environmental practices and unethical business practices, including anti-competitive behavior, as well as the origins of source materials. Apple Computer Company was founded on April 1, 1976, by Steve Jobs, Steve Wozniak, Ronald Wayne; the company's first product is the Apple I, a computer designed and hand-built by Wozniak, first shown to the public at the Homebrew Computer Club. Apple I was sold as a motherboard —a base kit concept which would now not be marketed as a complete personal computer.
The Apple I went on sale in July 1976 and was market-priced at $666.66. Apple Computer, Inc. was incorporated on January 3, 1977, without Wayne, who had left and sold his share of the company back to Jobs and Wozniak for $800 only twelve days after having co-founded Apple. Multimillionaire Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple. During the first five years of operations revenues grew exponentially, doubling about every four months. Between September 1977 and September 1980, yearly sales grew from $775,000 to $118 million, an average annual growth rate of 533%; the Apple II invented by Wozniak, was introduced on April 16, 1977, at the first West Coast Computer Faire. It differs from its major rivals, the TRS-80 and Commodore PET, because of its character cell-based color graphics and open architecture. While early Apple II models use ordinary cassette tapes as storage devices, they were superseded by the introduction of a 5 1⁄4-inch floppy disk drive and interface called the Disk II.
The Apple II was chosen to be the desktop platform for the first "killer app" of the business world: VisiCalc, a spreadsheet program. VisiCalc created a business market for the Apple II and gave home users an additional reason to buy an Apple II: compatibility with the office. Before VisiCalc, Apple had been a distant third place c