Pure Competition & Monopolistic Competition Research Paper

Pure Competition & Monopolistic Competition - Research Paper Example A firm in a perfect competition shows complete elasticity to price fluctuations. Also, marginal revenues are equals to average revenues and market demands. It is the demand which causes shifts in average and marginal revenues in the short-run. Changes in market demand and supply lead to price fluctuations (Reynolds). 2.3Profit Maximization in the Short-Run For a firm in a pure competition, the difference between total costs and total revenues represent profits. For a firm to earn maximum profits, ability to control and react to marginal costs and revenue functions is important. If a firm can identify the level where marginal costs (MC) can be equals to marginal revenues (MR), profit can be maximized by increasing the output and number of units sold. It is important to note that in a short-run, Average revenue (AR) is equals to marginal revenue (MR) which also represents market price. Furthermore, the firm is intended to increase profits and not revenues. Therefore, a firm is required to produce and sell additional goods in order to reduce marginal costs (MC). The lower marginal cost would lead to lower average costs and the difference between average costs and revenues would indicate final profits of the firm. In short, if marginal costs (MC) are equals to marginal revenues, the firm is earning maximum profits. In a scenario where these two variables are equal or MR is higher than MC, the firm should produce more and vice versa (see Fig 1). In a short-run, the maximum loss that a firm can bear is its fixed cost.

Important challenge facing management Essay Example | Topics and Well Written Essays - 250 words

Important challenge facing management - Essay Example Other times the employee’s pay is low with minimal benefits. This could greatly affect an employee. Some employees also lack the necessary skills and qualifications required for the job. There are many ways to address the issue of employee performance. Proper pay and remuneration of employees will motivate them to work harder and more effectively. It is also important to have effective screening processes to ensure that the ideal worker gets the job, which they are most comfortable doing. This ensures that one excels in their area of specialization (DuBrin, 2009). It is also necessary to set a good example for the employees. They need motivation by the leadership of the organization, and this should inspire them to work harder. One should also engage in creative discussion with the employees so that they can freely voice their opinions concerning work and the workplace environment. This will help tackle the issue of employee

My wonder years Essay Example for Free

My wonder years Essay I was so late that I almost slipped on the bridle path as I ran to catch my bus. I looked like an inhuman jumble sale. My clothes where so large on me they where either cast off Pavarotti uniform or designed for the supersized. My shoes had the clumpy factor that matched my entire look. Any 70s sad Dad having a mid life crisis would be proud to own them; they were loafers of another era. To add to physical insult I was very ungainly tall, skinny with big hands and feet a typical reject. I couldnt have stuck out more if I had YEAR 7-NEW MEAT imprinted on my forehead. The kids on my bus thought I was direct evidence that God has a sense of humor. The journey to school felt totally traumatizing, when I finally got off the bus I was so nervous my knees couldve beat James Stuart at a jitterbug dance off. To my relief there were a dozen other rather inconspicuous kids from my year that failed at being invisible by huddling under one tree. We followed the mass of students into the playground in attempts to find people we knew. As the bell sounded it wasnt hard to do-a tidal wave of tenth years swept over us, they left behind a large entourage of first years. A teacher rescued us from the window ridicule we where being subjected to-courtesy of every other year group. We got placed in our forms I knew absolutely no one! Our tutor looked as equally as nervous as us. He himself looked out of place, like he belonged to the hippie mud baths at Glastonbury not in a Science lab, with a bunch of kid strangers. Our first lesson was French-affreux! It was fairly simple but Madame Mao seemed rather too eager to make our lives a living hell. Her salive took out the front row with accompanied by ear piercing terrier like shrieks. Cooking was less exhausting but the smell of sunshine bars was beyond stomach turning, sulpher dioxide mixed with rotting flesh and hush puppys (I think in England theyre called Cornmeal fritters or battered cornmeal) would be understated. Lunch, if you classify the canteen food as edible was adequate. My new found friends and I walked through the school. Over 300 million people speak English you wouldnt think so if you were in a school playground. The language of teenagers seemed similar to that of a caveman. A lot of monosyllabic words making no sense at all. Speaking of language, teenagers are like Inuits they have fifty words to describe a variation of snow but not one word for just snow. (Reading Bill Bryson fills your head with unnecessary facts). Teenagers in the school seemed like that-there were plenty of cliques but no happy medium-there was no such thing as just a teenager. I was given little time to worry about where I would fit in as the third lesson approached. Geography-I am one of the many geographically confused that often end up asking for directions. Luckily it seemed to involve earthquakes-to which I was no stranger (Hong Kong provided me with first hand experience) rather than map reading. Finally Music, the less said about the boy that got his fingers stuck in a flute the better-and I thought I was accident prone! (I dont know whether it was due to first impressions but I no longer take any of the aforementioned subjects! ) The trip home was hardly a rollercoaster, yet somehow it still made me feel dizzy and a little dazed. The first day had confirmed my worst fears, that my childhood was O. V. E. R (alphabetical breakdown was so this year). I felt so maladjusted, even though I had made quite a lot of friends in the one day. There was and still is so much to take in! I went home 11 going on 15. I have changed tremendously as time has gone on, now that I am 15 going on 16; the 90s occasionally calls with its re-runs of Dawsons Creek. Pangs of nostalgia pass as the past brings me back to my childhood and 2003 my wonder year. Show preview only The above preview is unformatted text This student written piece of work is one of many that can be found in our GCSE Miscellaneous section. Download this essay Print Save Not the one? Search for

Optimal Economic Uncertainty Index

Optimal Economic Uncertainty Index Introduction Economic uncertainty states about the uncertain of future economic events. This means we cannot foresee what will happen to the country’s economic in the future and this is why this research is been investigate. There are many situations which caused the uncertainty to happen such as the changes in economic and financial policies, various views about the growth prospects, the productivity movements, wars and natural disasters (Bloom et al., 2013). The first innovative work which discussed about the effects of uncertainty is done by Knight (1921). Knight formalized a distinction between risk and uncertainty. Based on Knight’s research, risk was applies to the situations where is unpredicted but still can accurately calculate the odds. However, uncertainty applies to the situations where is unpredicted all the information we need with the purpose of set accurate odds. According to a theory of profit and entrepreneurship, Knight suggests that the function of the entreprene ur is to earn profit by undertaken the investments with uncertain outcome (Bewley, 2002). Thereafter, more and more researcher has constructed diverse models to investigate the uncertainty. Mises (1949) states that researchers never gave up in searching the best ways to reduce the problems which caused by the uncertainty. However, the results gain by most researchers which tested the uncertainty could not supply suitable and meaningful outcomes. This is because the researchers’ understanding and the modeling created has supply limited information from the empirical data and too much effort has been applied in explaining and estimating the characteristic of human beings under variety situations (Ellsberg 1961; Epstein 1999). However, an open question remains as to whether or not research in this area could better our knowledge of economic turbulences and other utmost uncertainties and improve the scientific accuracy of economic theory. There are fewer of empirical studies on the economic uncertainty index depend on normative analysis. This type of analysis creates value judgments about the economy or the goals of public policy to be archive. (Caplin and Schotte 2008). Thus, normative analysis cannot be used to refute the precision of the economic uncertainty index (Gan 2014). Monetary conditions indexes (MCI) have become famous in several countries over the past few years as a useful tool and indicator for the stance of monetary policy. Although MCI played as an alternative monetary policy rule sparked intense debate and yet whether a consensus can be reached remained unknown at the beginning however it has been losing its magnet effect on the economy from the past years. The main factor of this change would be exchange rate, which is merely determined by the market. Gan (2014) conducted a paper namely the optimal economic uncertainty index constructed is one of many in the economic uncertainty literatures, which the optimal form may reflect the true economic conditions. This study will apply two monetary policy rules which are MCI and OEUI in selected Asian countries to examine which rules would facilitate achieving the best economic outcomes and lead to rational and wise policy decisions through a comparison. Matters of the study The argument of monetary policy rules in an economic uncertainty A good monetary policy rule is very important to the economy. It can help the economy respond efficiently to economic upheavals by limiting the gap of actual economy activity from its equilibrium, without significantly changing the ultimate goals of monetary policy. As stressed by Svensson (2000), monetary policy rule can either describe a systematic response of policy instrument to events in the economy (e.g., changes in macro variables and changes in policy variables), or it can suggest a specific economic outcome, or it can target the central bank’s goals (e.g. output and/or inflation). This behaviour of the policy rule can be inferred only in the context of a full model that links the policy instrument to the targeting variables included in the rule. Levin, Wieland, and Williams (2001) investigated the performance of forecast-based monetary policy rules by using five macroeconomic models that present a wide range of views on aggregate dynamics. They categorize the characteristics of rules that are robust to model uncertainty. However, the performance of monetary policy rule in an economic uncertainty is still under debate. Dotsey and Plosser (2012) examine the design of monetary policy rules in an environment. The argument is lingering around the issue that people have only an imperfect knowledge of the economy to confront challenges arising from various forms of economic uncertainty. The inadequate of non-optimal monetary policy rules in an economic uncertainty Simple monetary policy rules – non-optimal – such as Taylor (1993) may involve a reaction to variables other than conventional variables such as inflation gap and output gap, which are considered intuitively relevant to the conduct of monetary policy. Generally, these rules are similar to those discussed in Clarida et al. (1998). The great virtue of the simple rules is simplicity, which makes them easy to understand. Simple rules still can be used in central bank communication, although the public would not be able to verify the exact rule that is being followed. The rule can perform well in a wide range of models, which makes it robust to model uncertainty (Taylor, 2000). As stressed by Orphanides (2007: 11), some useful elements of policy design surface from historical analysis of TR: (i) good stabilization performance have a strong relation to the inflation’s reaction; (ii) good performance is associated with policy rules that show considerable inertia; (iii) a strong reaction to incorrectly measured output gaps has historically proven counterproductive; (iv) successful policy could still usefully incorporate information from real economic activity by focusing on the growth rate of the economy. Additionally, financial market analysts, scholars and central banks’ staff have been using monetary policy rules increasingly to forecast interest rates and to evaluate and describe central bank actions. Despite the fact that simple policy rules can often provide a good approximation to fully optimal policy under perfect information and are typically more robust to uncertainty (Cateau, 2007), simple rules have a number of weaknesses. Although their performance is rarely disastrous, they can involve large welfare losses relatively to fully optimal rules (Nikolov, 2002). In the similar vein, Svensson (2003) argued that a commitment to a simple instrument rule might be far from optimal in some circumstances. Crucially, simple rules are rarely optimal. Some studies, for example, Batini, Harrison and Millard (2003) argued that Taylor-type rules are not robust to open economy features. Taylor (2007) recognized that the TR is not supposed to be followed mechanically, but he also argued that monetary policy might deliver better results in terms of low inflation and output variability by staying closer to the rule. The failure of monetary conditions index Generally an MCI is a measurement of demand pressure; demand pressure is often measured by the output gap (output gap is the difference between current output and the estimated output in equilibrium level). The MCI is simple economic uncertainty measure because it involves gap variables in estimation; any estimation of gap variables is subject to considerably uncertainty (Gan, 2014). The equation of MCI[1] is a combination of interest rate gap[2] and exchange rate gap[3]. Thereby, increases in interest rates as well as increases in exchange rates[4] indicate a higher MCI figure and, therefore, tighter monetary conditions rested here. The estimation of the weights of the two variables in the MCI is at the heart of calculating of the MCI. The ratio of these weights would encode whether an appreciation in interest rates can be compensated along with depreciation in the exchange rate. The weights also reflect the relative impacts and changes of the interest rates as well as in the exchan ge rate affected on monetary conditions. Therefore, the MCI is generally viewed as a summative and informative tool for the public; meanwhile it serves as an early indicator for the central banks. However, the benign MCI played as an alternative monetary policy rule still sparked intense debate and yet whether a consensus can be reached remained unknown. Noticeably, the MCI has been losing its magnet effect on the economy from the past years. The most contributive factor of this change would be exchange rate, which is merely determined by the market. Further, the MCI mixes up two variables that are situated on two fundamentally different stages of the transmission process. The evidences can be briefly summarized by the application of the two MCI formerly leading advocates, the Bank of Canada (BOC) and the Reserve Bank of New Zealand (RBNZ). Since the early 1990s, BOC officially used MCI as an operating target (operating target is variable that the central bank influences directly by its monetary policy instruments[5]); however, the BOC did not directly control both the interest rate and the exchange rate simultaneously, but merely focused on the control of the interest rate. This means that central bank adjusted its interest rates to modify monetary conditions directly, which in turn is assumed to affect the exchange rate in various systematic approaches (usually via uncovered interest parity – UIP).[6] Due to its inability to target the exchange rate under MCI’s mechanical way, The RBNZ in 1999 gave up the concept of MCI may. The recurrent depreciation during the crisis and the evocable changes in the MCI were interpreted as signals of upcoming tightening that can cause long-term interest rates to rise and consequently exacerbate recessionary forces (Ito and Hayashi, 2004). To sum up, the concept of the MCI had lost a great part of its initial attractiveness in the end of the 1990s. The RNBZ abandoned published an MCI in March 1999 and concentrated its policy statements on a short-term interest rate. While the BOC continues to publish the MCI, its role in taking monetary policy decisions was reduced to that of many other indicators in recent years. The perform of optimal economic uncertainty In economics, optimal analysis is a normative analysis. It studies what the economic ought to be. However, the study about the optimal economic uncertainty is very limited. Most of the empirical studies are approximate form but not optimal. The optimal analysis is very common in most of the economic study such as the studies of monetary policy rule and others. In the late 1970s, the Federal Reserve stabilized the country’s economy by using the optimal Taylor Rule in the monetary policy. However, the Taylor Rule has misplaced the policy makers to face the real time data (Orphanides, 2003). This is because the optimal Taylor Rule only can perform better in the interest rate function. Giannoni (2000) investigated optimal policy rule in a simple forward-looking model, when the policymaker faces uncertainty about model parameters and shock processes. Other than that, Dieppe et al. (2004) examined the optimal monetary policy rule in the model of the euro area which is known as the ECB’s Area Wide Model, including a high degree of intrinsic perseverance and a restricted role for forward-looking anticipation. The optimal economic uncertainty index constructed by Gan (2014) is one of many in the economic uncertainty literatures, which the optimal form may reflect the true economic conditions. Since the economic uncertainty index is not observable. The rule of optimal economic uncertainty index suggests optimal economic uncertainty index can be computed by using grid search method based on small open economic model; a small open economic model is very close to a true economic model and it is not partial economic model. Motivation of the Study What is the response of optimal economic uncertainty to macro variables and policy variables? Until today, there are no policymakers (hereafter, central banks) have publish the optimal economic uncertainty index, for the reason they might be unwilling to publish such an index, or such an explicit formula simply does not exist. As stressed by Bernanke (2010a), economic engineering to address economic uncertainties needs to be improved. Optimality in this study can be given by particular specifications of the central bank’s loss function. Therefore, an optimal rule is the one that derived by minimizing a loss function. Two models are practically employed here. The first model is an optimal economic uncertainty index, which is proposed by Gan (2014). The second one is MCI concept which is based on the theoretical works by De Wet (2002). Thereby the optimal monetary responses can be derived. What is the welfare gain from taking into account the external variable? In order to answer this question, the study attempts to compare the derived optimal economic uncertainty index to a set that assumes with the exchange rate variable and a set that assumes without exchange rate variable. In line with this measure, one feasible approach is to measure the difference in the loss function values. For this purpose, the study would derive the optimal economic uncertainty index for a small open economic model in two setting, in other words, a model with the exchange rate variable and a model without the exchange rate variable. Objectives The objective is to examine the optimal economic uncertainty index (see Figure 1.1) while including the role of external variables – normative analysis. Specifically, this model is augmented and examined with exchange rates. The first model is the MCI of Bank of Canada is a variant of economic conditions rule, which can serve as a competitive rule; this rule consists exchange rates, interest rates and past output. The second model is the optimal economic uncertainty index based on a small open economy model, which was proposed by Gan (2014). Since the basic idea is to keep the rules at constant, i.e., MCI (De Wet, 2002) and optimal economic uncertainty index (Gan, 2014), these optimal rules would bring the economy back to its long-run equilibrium; the process can be indicated by MCI (i.e. an indicator that encompassed the total effects of interest rates and exchange rates), and by optimal economic uncertainty index (i.e. an indicator that encompassed the total effects of inter est rates, exchange rates, inflation and output at optimal level). This study also examines the dynamic profiles of monetary policy rules through a comparison. Eventually, this would enable us to draw an inference regarding which rules would facilitate achieving of the best economic outcomes and lead to rational and wise policy decisions and aid in assessing the behavior of the economic uncertainty in the future. Figure 1.1 Analytical Frameworks (theoretic framework of optimal economic uncertainty index) Figure 1 (a) 3D macro model and the optimal economic uncertainty index at zero uncertainty level of macroeconomic conditions. (b) 2D field of view of the optimal economic uncertainty index with zero uncertainty level of macroeconomic conditions. (c) 2D field of view of the negative-optimal economic uncertainty index with economic contraction. (d) 2D field of view of the positive-optimal economic uncertainty index with economic expansion. Significance of the Study The attainment of these objectives will certainly benefit the central banks. With the growing international mutual consent, both in academia and among central banks, maintaining the medium to long-term price stability is the overriding goal of monetary policy (Asian Development Bank, 2008). Research provides strong support in maintaining low and stable inflation, ultimately; this is beneficial for overall economic outcome (Mishikin, 2008). In line with this consensus, the proposed economic uncertainty index based on a small open economic model – suggested in this study may be considered by the central banks as an alternative framework with the end view of coming up with an improved and more effective economic policy strategy. This study provides exploration of two types of monetary policy rules in an economic uncertainty, the MCI of Bank of Canada and optimal economic uncertainty index based on a small open economic model of Gan (2014), where a set of parameters inducing different decision rules are determined. This study encompasses two macro variables (i.e., output and inflation) and two policy variables (i.e., interest rates and exchange rates) in the optimal model. Not only does this facilitate a better understanding of current policy actions, but it permits markets to better forecast the central bank’s future actions. The optimal policy in one setting may not be optimal policy in some other setting because there is no agreement on the best model of the economy (Plosser, 2008). The rules derived in this study can be contrasted. The optimal economic uncertainty index may outperform other rules (e.g., the Taylor rule and MCI rule) as it can be useful for the central banks. The proposed rule can serve asa policy of inflation targeting that in line with a welfare maximizing policy aiming at minimizing the output gap and inflation gap. This rule is superior that maintaining public confidence while giving monetary authorities to achieve the best economic outcomes in an optimal way. Conclusion This thesis is divided into five chapters. The current chapter sets the background and motivation for the thesis. Chapter 2 explores the theoretical and empirical literature on monetary policy rules with the aim of highlighting two research gaps that motivate the present study. Chapter 3 examines the MCI rule â€Å"true† policy reaction function through optimal TR, while Chapter 4 furthered the MCI rule by employing optimal economic uncertainty index based on a small open economic model. Lastly, Chapter 5 summarizes the major findings of the thesis and their implications, together with some recommendations for future study. [1] [2]Interest rates in the current period minus interest rates in the base period, i.e., changes in interest rates. [3]The level of the effective exchange rate minus the effective exchange rate in the base period divided by the level of the base period. i.e., changes in exchange rates. [4] A positive value for indicates appreciation of the domestic currency. [5] Cf. Burton and Lombra (2006: 671) and Thomas (2006: 608) for textbook definition. [6] Interest-rate-parity theorem states that the interest rate differential between two countries will be equal to the difference between the forward-exchange rate and the spot-exchange rate (equation), in other words, interest differential between two countries should be equally expected in term of the exchange rate change.

Women and Interfaith Dialogue :: Essays Papers

Women and Interfaith Dialogue The word dialogue implies a personal encounter, a meeting face to face, where the aim is not to change the other partner in the dialogue, but to risk being changed through the process. For women, the main point of dialogue is to build relationships or to conserve them. "Dialogue among women are more life-oriented; they come out of actual experiences, and they are more clearly oriented to bringing about concrete changes in perception and practice at the very basic level of the lives of people." Women's dialogical practice is an alternative to the traditional men's approach. Most men approach their religious tradition primarily with an intellectual, theological, and doctrinaire commitment. Women's religious positions, however, are not as strict as men's. They initiate discussion, reflection, dialogue, and different opinions. It accentuates the diversity of life styles, types of thinking, tolerance and freedom in expressing individuals' ambitions, and it distinguishes the unique charact er of personalities. There are discernible differences between men and women in their approach to and practice of dialogue; however, these generalizations are not made to stereotype all men as exclusively intellectual and dogmatic and all women as experiential and instinctive. This is not an attempt to idealize women and the dialogue among them; it is only to emphasize the distinctive features that characterize dialogue among women, and introduce some of the conflicts and obstacles that arise. The first unique characteristic of dialogue is the ability of a group of women from all different religious traditions to bond. Women develop interfaith understanding through their relationships with other women. Women tend to know the person first and her faith second. It is through such intentional relationship building that women relate to each other best. In experiencing the other, women also come to know themselves better. They are able to confirm their own faith, convert to another tradition, or become educated about another religious community that exists. As a result, interfaith dialogue enables women to understand each other, other faiths, and their own traditions. In a meeting of men, such a diverse group might have become rather controversial. The second factor is women's flexible approach in representing their traditions. In religious dialogue women tend to make contributions based on the content of their religion in scripture and tradition without being defensive or obstinate. In general, women seem to have a more tolerant understanding of religion, while most men approach their religious tradition as a responsibility that has become part of their understanding of life and reality.

Shakespeare and Similarity of Gender Roles :: essays research papers fc

Shakespeare and Similarity of Gender Roles #2   Ã‚  Ã‚  Ã‚  Ã‚  Shakespeare, although historically gender biased, can be charged with giving both males and females similar characteristic traits within his plays. This can best be proven using the comparison of Portia from the â€Å"Merchant of Venice† to King Henry from â€Å"Henry V†. These two characters, barring gender, show common traits throughout both of these plays. They are also set into similar situations, such as marital issues, prank playing, and the use of disguises.   Ã‚  Ã‚  Ã‚  Ã‚  As audiences are introduced to each of these characters, they are shown both their wealth and intelligence. In â€Å"Henry V†, the audience is quickly given King Henry’s â€Å"free-spirited† background, but then is told of his miraculous change in demeanor after his father’s death. The Bishop of Canterbury explains it as â€Å"But that his wildness, mortified in him,/Seemed to die too; yea, at that very moment/ Consideration like an angel came/ And whipped th’offending Adam out of him,/ Leaving his body as a paradise/†¦Never was such a sudden scholar made† (1.1 27-33). Portia’s intelligence is explained best by the literary critic Mrs. [Anna Brownell] Jameson when she states that Portia is â€Å"distinguished by her mental superiority. [In Portia] intellect is kindled into romance by a poetical imagination† (38-39). Portia’s sense of humor and spiritedness makes itself known almost immediately when she is first introduced in â€Å"The Merchant of Venice† with her waiting woman, Nerissa. In this speech, which concerns the terms of her future marriage according to her deceased fathers’ will, Portia artfully and impertinently describes the suitors who have vied for her hand thus far (1.2). Forced marriage is a common bond that Portia shares with King Henry. According to her deceased fathers’ wishes, Portia must marry the man who chooses the correct casket from a choice of three. She has no say in the matter. Henry, also, has no say in whom he must marry. As King, he must cement England’s bonds with France, and thus make his marriage to Katharine a condition of Frances’ surrender. Portia, happily, ends up marrying the gentleman that she wishes. Henry decides to â€Å"woo† the Lady Katharine, supposedly falling in love with her. According to Desmond Seward, â€Å" The King†¦was enchanted by the girl. He regarded her as the only possible bride for him, if contemporaries are to be believed† (130-131). A strong parallel that Shakespeare creates between these two characters is their use of disguises.

Machiavelli, Plato, Aristotle Essay

Machiavelli in his book â€Å"The Prince† seems to sap the very foundations of morality and stops at nothing short of capsizing the entire edifice of religion. His thoughts resonate with a loathing of true virtue and propagate corrupted politics. Actually, today the term Machiavellianism is used to refer to the use of deceitfulness to advance one’s goals or desires. In ‘The Prince†, Machiavelli breaks from the classical view of virtue as represented by his philosophic predecessors Plato and Aristotle. Whereas his predecessors held virtue in an ideal environment (idealism), Machiavelli defined virtue in a real environment where one is judged by his actions and not by the way his actions ought to be (realism). According to Plato and Aristotle good life only exists in total virtue where a person will be most happy. Plato places emphasis on the extinction of personal desires through love so that one can achieve happiness (Barker, 1959). Aristotle on the other hand believes that an ideal or perfect state brings out the virtue in all men. A person will gain happiness when all their actions and goals are virtuous. This implies that according to Aristotle happiness is a group goal and not an individual goal (Barker, 1959). Plato equally in bringing out the essence of love which must be shared among people suggests that happiness is a group goal. However, virtue in the Machiavellian sense seems to lack a moral tone. By virtue, he alludes to personal qualities needed for the achievement of one’s own ends (Machiavelli, 1998). His view seems to be directed at self interests and not a common goal. In pursuing personal interests, one is not careful about the means by which he does so and therefore is not bound by a moral imperative. In â€Å"The Prince† Machiavelli describes two types of principalities. One is hereditary and the other is acquired. He observes that though no virtue is required to attain a hereditary principality, it takes virtue to acquire and maintain a new principality. The basis of his views does not entirely contradict the classical view on morality, however, he goes on further to illustrate and make allowances for evil, and this is what brings about the contradiction. For example Machiavelli states, â€Å"When a new territory does not share the same language and culture as the prince’s original territory, the prince must have the wisdom and ability to assimilate the new territory† (Machiavelli, 1998). This view wholly concurs with Plato’s on the need for wisdom as a virtue. On ability however, Machiavelli alludes to the use of force or violent means which defies views on classical morality. In the same chapter, he goes on to say that a prince ought to protect his weaker neighbors and prevent the powerful ones from gaining more power. The virtue of courage here echoes the principle virtues as outlined by Plato, courage being one of them. However, Machiavelli encourages the prince not to hesitate in using force to enforce this (Machiavelli, 1998). This goes against the grain of conventional virtue as it encourages people in power to use whatever means, even ruthless, to preserve their power. Machiavelli suggests two ways by which a private citizen can become a prince, either by fortune or by ability. Among those who became princes through ability, Machiavelli cites Moses, Cyrus, Romulus, and Francesco Sforza among others. He gives the example of Borgia who inherited power and later lost it to dissuade princes from depending on fortune but rather to use their abilities to attain success. He makes it clear that virtue or ability is more related to statecraft and less related to morality. In undermining morality, he allows for the use of force to gain and preserve power. He says â€Å"A prince who comes to power by evil means is said to have neither fortune nor ability. Such a prince may gain power, but not glory† (Machiavelli, 1998). By â€Å"evil means,† he refers to the use cruelty in proper and improper ways. He explains that if cruelty is utilized to achieve a necessary goal, then it is proper. However, if it is used to achieve no purpose but to instill f ear into the citizens, it is improper. Consequently, the proper use of force according to Machiavelli is a virtue. This contradicts the virtue of moderation as outlined by Plato which puts restrictions on the use of extreme means such as the use of force to achieve goals. One can infer that Plato would advocate for diplomacy rather than force if a prince aimed at achieving allegiance from his subjects. According to Plato, good life is only attained through perfect love which comes about by a submersion of personal desire. According to Machiavelli, â€Å"a prince does not have to be loved by the people, though still he must not be hated† (Machiavelli, 1998). He goes further to explain that history has revealed that men who were not loved but feared were more effective leaders. A ruler who brings mayhem to his state because of his imprudent kindness should not be considered a good leader. For Machiavelli, the virtue a prince should pursue is â€Å"fear from his subjects and not love (Machiavelli, 1998). Such a prince, he explains, will be able to sustain the morale of his subjects, which takes both wisdom and courage. Therefore according to Machiavelli the prince is better of being feared than loved which contradicts the earlier views of Plato, who placed a great emphasis on the pursuit of love as a major virtue. In chapter eighteen of â€Å"The Prince† Machiavelli argues that total honesty is only practical in an ideal world. However, since the world is characterized by dishonest men, a prince cannot be expected to keep all his pledges. Therefore he should endeavor to use deception to his benefit. Machiavelli uses the analogy of the fox and the lion to encourage the prince to be both cunning and courageous. He explains that whereas â€Å"the fox can recognize snares but cannot drive away wolves, the lion can drive away wolves but cannot recognize snares† (Machiavelli, 1998).In this he means that a prince does not need to possess good qualities but should just appear to possess them, since subjects are only interested in outward appearances if they lead to a favorable end. It is from this view that the term ‘Machiavellianism† has been coined to in today’s usage to mean the use of cunningness to achieve undue advantage over one’s subjects. In comparison to the classical view of virtue, Machiavelli’s view lacks a moral sense. Machiavelli’s work on the prince has received wide criticism from a large front including the Catholic Church. As the devil’s advocate, he seems to break away from the conventional virtues of his predecessors Plato and Aristotle openly deriding the church and its fundamentals. Whereas Plato and Aristotle relate living virtuously to godliness, Machiavelli’s virtue involves lying and subordinating atrocious means to practical ends. Realism, which Machiavelli subscribed to, has been defined as a cynical view to politics devoted to furthering personal interests with no regard to moral or religious structures (Schaub, 1998). This view implies that a prince can be at odds with the moral virtue, a contradiction to the classical concept of virtue postulated by both Plato and Aristotle. At a glance of Machiavelli’s â€Å"The Prince†, we largely infer that he goes all out to ill advice the prince against the classical virtues of his predecessors. He seems to herald the triumph of evil over good. However, taking a critical look at the work, one cannot help but notice gaps and disjunctions in the text. For example the characters he picks to illustrate his case. In showing the proper and effective use of cruelty in chapter seventeen, he uses Hannibal and compares him to Scipio as compassionate and therefore ineffective. This is violently at odds with the truth and is ironic at the same time because Scipio accused of compassion defeats Hannibal at the battle of Zama (Machiavelli, 1998). Also, Machiavelli writes in Italian and not Latin, the language of the scholars of whom the princes are. This leaves the question as to who exactly was his target audience. Was he really advising the princes who already knew how to be cruel or was it the subjects, and if the subjects then for what purpose. Therefore, just as much as we have illustrated how Machiavelli strays from the classical virtue, it rests upon the attentive reader to ingest and make a personal judgment as to what Machiavelli really intended to put across.