Recent orders
understanding of the attainment and the status of human knowledge capital development in maintenance project in KFSH & RC
Chapter Four: Result and analysis
The purpose of the survey was to get an understanding of the attainment and the status of human knowledge capital development in maintenance project in KFSH & RC. In so doing, the influence that exists between human knowledge capital and performance in project management in this facility is examined. Two types of hypothesis are evaluated. The two statistics tools are student t-test and the z- test. In order to achieve this task, a random sample of data is picked from KFSH & RC and used. A sample of 750 KFSH & RC employees and employers were sampled.
Data reduction to manageable numbers
From a total of 750 questionnaires issued, 639 were returned. Some fully filled and other half or quarter filled. It was important for proper and finer focus to eliminate all information that were either irrelevant or did not directly contribute to the topic. The duplicated information was also eliminated. Two or more half filled or less than half filled questionnaires were combined to be one or two fully filled questionnaires. All contradicting information was eliminated and questionnaires with similar information, one was picked or two combined to form one. Finally, (after analysis), a sample of 31 questionnaire for employees was used for the z- test while that t- test was 23 questionnaires from the employers. In the questionnaire, the performance increment was scaled from 50% to 120%. The employers and employees with close reference to the past records, the overall performance of KFSH & RC was determined. The 50% was the general increment in the company profitability. It was thus important to recognize the general growth of KFSH & RC considering the factors like increased number of employees, increased production and other related matters.
The results for the employees rating are as follows (to be used in z-test): 93, 103, 95, 101, 94, 91, 105, 94, 101, 88, 98,94,101,92,94, 93, 102, 95, 101, 94, 91, 105, 94, 101, 88, 98, 94, 101, 92, 100 and 93. Since training impacts is directly related to the performance of KFSH & RC, the data collected in relation to the increased productivity was valid and appropriate.
Step1: Stating the Statistical Hypothesis
In determining whether there is a link between the training, coaching, learning and creativity, innovation and experience of the maintenance staff that undertook the Cyclotron operation section upgrade project of 2011 with the overall performance of KFSH & RC, two hypotheses were used.
H1: μ < 100 (alternative hypothesis) (there is a link between the training, coaching, learning and creativity, innovation and experience of the maintenance staff that undertook the Cyclotron operation section upgrade project of 2011 with the overall performance of KFSH & RC).
HO: μ = 100 (Null hypothesis) (there is no link between the training, coaching, learning and creativity, innovation and experience of the maintenance staff that undertook the Cyclotron operation section upgrade project of 2011 with the overall performance of KFSH & RC). This is to say, suppose the null hypothesis is correct, then there is a link and if the alternative hypothesis is correct, then there is no link. These hypotheses will be tested at a significant level of 5%.
Step2: Assumptions
It is assumed that KFSH & RC investment in learning, education, experience, expertise, innovation, and creativity of its maintenance staff involved in Cyclotron operation section upgrade project of 2011 has gradually assisted in the improvement of KFSH & RC performance. The overall employee/employer performance is distributed about the mean productivity increase. This implies that since the sample is randomly drawn from a normally distributed population (and productivity analyzed over three years), the sample belongs to a sampling distribution that exhibit normal distribution about the mean. This will help further research whether the learning, education, experience, expertise, innovation, and creativity of maintenance staff in the Cyclotron operation section upgrade project of 2011 has contributed to the increased productivity of KFSH & RC in general (second objective).
Consequently, the implication is a sample that is expected to exhibit a mean identical of the source population. While the productivity in respect to the number of months (since the introduction of Cyclotron operation) it bears the property of a standard normal distribution will have a distribution N (0, 1), we assume that the source population for the sample has a distribution N (100, 6).
Step3: Test Statistic
Two types of test statistics were used to assess the hypotheses. First, the z-test was used for the sample and then another random sample of 23 days was selected, which was assessed through the t-test. For the z-test, the following statistics applied. Assessment of the skewness and kurtosis gives a positive skewness for both the tests. This means that the distribution is skewed to the right. However, the degree of skewness is slight and next to zero hence, the distribution is normal and almost normally distributed about the mean.
z-Test: Two Sample for Means
Variable 1
Mean 93
Known Variance 36
Observations 1
Hypothesized Mean Difference 0
z 0
P(Z<=z) one-tail 0.5
z Critical one-tail 1.644853627
P(Z<=z) two-tail 1
z Critical two-tail 1.959963985
Z-test
Ho: μ = 100
H1: μ < 100
Z value = (μ1 – μ2)/ (σ/√n)
= (96.32 –100)/ (6/31½)
= -3.414895476
The standard deviation of the sample is -3.414895476 and because of the normal distribution assumption; it is further assumed that the population and the sample have equal standard deviations hence variance.
One-Sample Test
Test Value = 100
t df Sig. (2-tailed) Mean Difference 95% Confidence Interval of the Difference
Lower Upper
Sample for z-test -4.286 30 .000 -3.677 -5.43 -1.92
Step4: Evaluation of Statistic
The results for the t- test give t value of 3.842 at a significance value of 0.95 with a degree of freedom of 22. This t-value falls within the rejection region. The result of the z- test gives a value -1.644854. This value falls within the rejection region. The rejection region based on z-test is -1.645. The difference between the two figures is not large enough to disqualify chance as source of the difference.
Step5: Interpretation of Results
Since the t-value does not fall within our rejection region, we accept the aletrenative hypothesis that there is a link between the training, coaching, learning and creativity, innovation and experience of the maintenance staff that undertook the Cyclotron operation section upgrade project of 2011 with the overall performance of KFSH & RC). The value indicates that there is sufficient evidence that the training has aided to the increased production of KFSH & RC since its introduction.
Therefore, the alternate hypothesis applies. Based on the z-test, the observed z-value is -1.644854 against a rejection mark of -1.645. The observed z-value and the rejection mark value have insignificant difference because the figure is converted to three significant figures. For this reason, the observed value falls on the rejection mark and therefore it leads to the rejection of the null hypothesis. Both the results (the results for z- test and those for t- test) give values that fall within the rejection region and hence the null hypothesis is rejected for both (Hinton 243). This gives sufficient evidence to accept that there is a link between training and the overall performance of KFSH & RC. The study therefore ascertains that improving the performance of employees through training will create marked opportunities for its development, and, therefore, foster positive social change and increased production. A contribution to positive social change evident through this propose study by providing an environment conducive for learning, teamwork, enhance competence, understanding complex disease and safe practice. Currently, the clinical experience is under performing, given limited opportunities to learn problem solving, and lack of confidence in the clinical arena. Finding measures to reverse the adverse effects of providing clinical experience is beneficial to nursing schools around the world. The basic premise of this research is that improving education of employees will directly increase student knowledge, ability, and confidence.
Assumptions and Limitations
The assumptions to the study conducted in this context are diverse and are directly linked to the variables that relate to the training, coaching, learning and creativity, innovation and experience of the maintenance staff that undertook the Cyclotron operation section upgrade project of 2011 with the overall performance of KFSH & RC. The interviewees and those submitting the questionnaires are assumed to have had adequate knowledge of the past performance since the introduction of the program.
The assumption is aimed at the research or study, especially the data analysis, possible. Imitative measures are provided for in the chosen tool of statistical analysis; t-test extenuates the risk of inaccurate results due to this assumptions and rounding offs or various values.
The main limitation of the study is the limiting of participants to either employers or employees of the company. All the data submitted by the source (employers and employees) in this case are assumed to be true. This research will illuminate the functionality of a proposed method through which the performance of employers and employees can be improved.
The fact that this study is limited to one company (KFSH & RC) limit the generalization of its finding. However, the medical industry being knowledge-intensive industry shows just who applicable this research can be to the rest of the industries.
Problems encountered during the research
This therefore means that it required large sums of money if it is to be a total success. At the moment there is no assurance that the researcher will be getting this kind of money in full without cutting some budgetary items or resorting to alternative sources of finances, finances that might come with strings attached. This therefore calls upon the researcher to seek alternative sources of funding in advance to avoid a situation where a deficient might be occasioned by some funder pulling out in the last minute or even offering smaller amount than the budgeted amount.
Unwillingness on the part of respondents: Achieving 100% cooperation with the respondents is normally a tall order for a researcher in research study of this type and magnitude. This is especially if they suspect that the said research might expose their individual performance. The researcher would be mistaken to think that this particular research study will be an exception. Therefore the researcher ought to be prepared for a situation where the respondents might be unwilling to give sensitive information concerning certain aspects of their work that the researcher might be interested in (Dulewicz, & Higgs, 1999, pg. 14). It is therefore incumbent upon the researcher to assure the respondents a high level of confidentiality if he is to overcome this challenge.
Distorted responses: This is an extension of lack of cooperation on the part of respondents. In this case, a respondent who is not interested in diverging certain information to the researcher for one reason of another might resort to giving inaccurate answers to the researcher (Fatt, 2002. Pg. 28). This intention distortion is even more dangerous to the research than outright lack of cooperation in that it gives an impression that the answers that have been given are accurate, thereby giving false finding, unreliable interpretations and wrong conclusions and recommendations (Hecker, 1996). The best way the research should do in order to bypass this bottleneck is to avoid pushing for answers from respondents. This will be best done through allowing them to answer through their own volition and to leave any question that they might be unable or unwilling to answer.
Research personnel: This kind of research will require personnel that are well-versed with numerical and analytical skills. Mobilizing this kind of personnel is neither easy nor cheap. The same applies to outsourcing the services of this kind of a team. This leaves the researcher with only one option – training them which also as its fair share of bottlenecks.
Qualitative Analysis of Cyclotron operation section upgrade
Past records on the performance of KFSH & RC offered different research reports and peer-reviewed journals that are fundamental to a study of this nature. A key example of these resources was the research report by Gillies (2003) which elucidates the common basis of cooperative learning, that implemented by nurses in various hospitals.
In such a setting as described above, teachers are akin to moderators who primarily transmit their expertise to the students when necessary. This is aimed at giving them absolute control over the learning process as it becomes less passive and more participatory. The apparent strong points of the Cyclotron operation section upgrade lie in the knowledge gained or experience got while working. Interactive and participatory approaches to learning serve the purpose of allowing students to merge theory with practice, so as to avoid any biased preference of one side to the other. It also implies the direct application of the gained information in the appropriate field. Students are given the opportunity to utilize their newly acquired knowledge for the purpose of discovering more information, than with regard to the topic of study. The Cyclotron operation section upgrade also provided avenues through which learners could understand a topic better, through the inclusion of the person’s point of view.
Cyclotron operation section upgrade provided additional support for cooperation in the learning process by pointing out that the effectiveness of learning depended on its context and embedded activities. Cyclotron operation section upgrade participants were provided with challenging tasks that they are expected to complete in collaboration. It also used problem-solving techniques as its cornerstone. Within the context of collaborative learning, educators typically began with particular problems that require practical solutions, as opposed to, starting with theoretical frameworks of study and then moving on to the application. This enhanced the participation and application of the gained knowledge.
The studying context provided by Cyclotron operation section upgrade enabled learners or employees in this case to practice their individual problem solving skills while assessing their level of improvement in particular areas of study. Concisely, this taped into another key assumption of Cyclotron operation section upgrade as underscored by Dyson, Griffin and Hastie (2004). Individual learners cannot be standardized as an inflexible sodality since they are different in various ways. These differences are virtually always complementary to each other, which opens yet another thoroughfare that instructors can use while teaching.
The students’ diverse backgrounds and experiences are some of the major extraneous factors that influenced the learning process. This effectively invalidates learning approaches that have been traditionally based on standardizing students. Cyclotron operation section upgrade allowed instructors and employees/employers to understand the different ideas and approaches present with each learner. Consequently, lessons and study plans coul be modified to fit every learner and so its convenience.
Cyclotron operation section upgrade exploited the social attribute of learning. In essence, as students engaged each other in debates and discussions with regard to a particular problem, they are putting to use their communication and interpersonal skills. These interpersonal interactions among students are what actually enabled effective learning to occur and therefore better performance. The social nature of Cyclotron operation section upgrade encouraged employees collectively to convey their individual capacities; thereby creating an indispensable intellectual synergy that not only makes learning faster, but more interesting. The problem-solving process, therefore, made easier and more stimulating.
Learner motivation has been unequivocally touted as the elixir of effective learning, which is needed to equip learners with the appropriate skills for managing the dynamism of social and professional life. Different people, however, generate and use motivation in variant ways. This fact places the onerous task of discovering and ascertaining the nature of motivation among all students on the shoulders of educators. Linnenbrink (2005) noted that students require the constant reinforcement of their motivation to learn in order to guarantee satisfactory acquisition of knowledge.
Cyclotron operation section upgrade has improved performance in the nurses as it incorporated both the simulation effects and the theoretical information that then reinforced their knowledge in practical nursing. With the application of the diverse approaches in teaching of the nursing students, it is evident that the employees widened their understanding and therefore was able to aid the patients in meeting their medical needs.
Education research has advanced incessant calls for increasing the participation of students in the learning process, especially in institutions of higher learning. These calls come with growing evidence for the capability of collaborative learning techniques to enhance both retention and success in colleges. Collaborative undertakings involve teamwork whereby members have to deal with their individual differences amicably for any significant progress to be realized. The ability of people to either tolerate or resolve their differences spells out the necessary components of a harmonious society achieved through collaboration and teamwork.
Cyclotron operation section upgrade directly or indirectly was pivotal in improving linguistic and psychological, capabilities. This is a means to challenge students to work together. Johnson, et al, (1981) stated that Cyclotron operation section upgrade improved motivation among students. Also, employees were increasing their performance and academic achievement, which is the desire of every organization and employee. Through Cyclotron operation section upgrade, employees were equally affected by their self esteem, whereas, improvement of attitude towards learning and towards their particular areas of work.
In this study the main task was to determine link between the training, coaching, learning and creativity, innovation and experience of the maintenance staff that undertook the Cyclotron operation section upgrade project of 2011 with the overall performance of KFSH & RC. Where training, coaching, learning and the experience, expertise, innovation, and creativity of the staffs involved in this project refers to the human knowledge capital of KFSH & RC. In most of the researches conducted in the past, a positive relation is existent between employee training and its effect on learning processes. Introduction of Cyclotron operation section upgrade leaded the employee to a clearer understanding of their requirements. This later translates to better performance and quality service delivery by those participating in Cyclotron operation section upgrade.
The research indicates the existent of a link between the training, coaching, learning and creativity, innovation and experience of the maintenance staff that undertook the Cyclotron operation section upgrade project of 2011 with the overall performance of KFSH & RC. Where training, coaching, learning and the experience, expertise, innovation, and creativity of the staffs involved in this project refers to the human knowledge capital of KFSH & RC. Where employee training is directly related to the general and overall performance of KFSH & RC. It is, however, important to point out that, in the research the study focused more than on individuals’ responses and perception of Cyclotron operation section upgrade project of 2011.
Understanding of Certain American Political Concepts
Compare the “typical American” understanding of certain political concepts with how you believe the Lost Boys understand those same concepts, and support your arguments with outside research
Introduction
People view politics and judge certain political concepts from various perspectives. Certain political concepts are understood differently by different people depending on their origin, political background, and social-economic background. Such understanding could be completely different from the understanding of the same concepts by people living within the region where such political concepts are applied .This paper is based on comparing an understanding of certain political concepts it could be seen in the “typical American” compared to the Lost Boys of Sudan. The paper shows how typical Americans perceive or understand political concepts in comparison to understanding of the same concepts by the Lost Boys. The political concepts considered in this case include the purpose of the government, the human nature, freedom, America, and education. The two groups depict significant differences in the understanding these political concepts. Each of the five concepts selected for this paper are compared in detail and separately.
Purpose of the Government
I believe that the purpose of the government as seen in the Lost Boys is its obligation to satisfy all their needs politically, socially, and economically despite their origin. The Lost Boys of Sudan involve a group of boys allowed by the United States government to settle in the country as refugees. Their understanding of the government could be that the United States government has an obligation of taking care of all people needs despite their nationalities. They may have the belief that the government has to protect them and accept them for whom they are. This aspect and view/understanding about the US government have made the Lost Boys spread into many US cities (Corbett).
The ‘typical’ American perspective of the purpose of the government is that as long as the government has to take full responsibility, every Sudanese refugee in the United States has a role to play for the government to be able to promote benefits to the entire community (Walton). In contrast to their views and understanding about the US government, the Lost Boys were only received for refuge an aspect that was done at great risks given that African could be a home to many terrorists (Abadie). The purpose of the government is not serving the international community but is to serve its people. One main objective is ensuring security, which could have been endangered by the Lost Boys (American Documentary, Inc.). The government only allowed the refuge due to the trust it has to the programs hosting the Lost Boys such as Catholic Charities, the International Rescue Committee, Lutheran Social Services, and World Relief. The Lost Boys should not mistake this refuge for the purpose of the government as political obligation. The reason behind this view is that the US government also risks its security strategies and obligations by hosting refugees.
Human Nature
I believe that human nature is understood by the Lost Boys as involving life uncertainties or fate in life. This aspect of life would then have much control of their future and success. The Lost Boys could view or understand human nature as being related to the fates of life. To the Lost Boys, it hardly matters where they are moving to or whenever they have come from. Human nature according to them could be the uncertainties in life and that people need to be ready to accept the fate behind their lives (Gryph).
The ‘typical’ American perspective of human nature is that it involves distinguishing traits or characteristics such as people’s way of thinking, the way people feel, the way they act, and react. Human nature is natural and can hardly be influenced by aspects of culture. The key issue in human nature involves the nature of such characteristics, their causes, and the way human nature is fixed. In contrary to their views or understanding of human nature, this political concept has some critical implications on people’s ethics, their political lives, and on theology (Corbett). Human nature should be a source of social norms and people’s way of life. Unlike their understand which could have the view that their lives are controlled by the forces of nature, the norms generated through human nature can be used as a guide to people’s way of life. People’s lives are therefore based on their ways of life and people can ensure full control of their future and destinations in life.
Freedom
I strongly believe that the Lost Boys see freedom as a basis of doing whatever pleases an individual. Freedom to the Lost Boys could involve anything to do with free will and without destruction from their actions, thoughts, or decisions. Their understanding of freedom hardly considers anything to do with other people’s feelings towards their actions or the implications of certain actions to their live. They have the feeling that the authorities have nothing to do with controlling their actions or behaviors irrespective of whether such actions are harmful to the society or not. They are more likely to resist from any limitations of their freedoms than the typical American. They also view this concept as giving them adequate power over their parents’ control or decisions on their lives (WordPress.com).
The ‘typical’ American perspective of freedom is the believe that freedom has to do with free will, unrestricted communication and expression, exercising of one’s rights, and other related actions. Such freedom is limited to the interference of other people’s life or any harm to personal life. An instance could be the case of drug abuse or committing suicide, where exercise of freedom is not provided even by the constitution. A parent can therefore restrict his or her child from exercising some freedom that could negatively affect the child’s future of life. Freedom is an important feature of a democratic society like the United States. In contrast to their perception and understanding of freedom, all people have freedom from oppression and the freedom from other conditions that could disable an individual from the fulfillment of some enabling conditions. Normally, freedom involves exercising one’s thoughts, power, abilities, and communication without political or judicial influence. Such freedom should be limited to the influence of other individuals in the society (Abadie). There should be no external constraints to one’s freedom as long as such freedom is not within the lawful limitations.
America
I believe that, to the Lost Boys, America could be a solution to their social, political, and economic problems. To the Lost Boys, American could be depicted as a source of fortunate life and brighter future. I greatly agree with this view since the United States government has been working as much as possible to help various global communities around the globe through various ways. Some of the major ways include provision of war resolutions, provision of economic aid, and promotion of global health. Unlike their former economic activities of rearing cattle, the Lost Boys could perceive America as a developed country where they could easily earn their living, become rich easily, and have better living standards with little or no efforts (American Documentary, Inc.).
The ‘typical’ American understanding of America (The United States) is a developed country hosting a facet of almost all races and tribes of the world. America has a political motive of helping the world and especially those who are suffering due to various economic, social, and political issues. America contrary to the view and understanding of American as a source of easy life is that people have to work hard to survive just like in any other region of the world. Typical Americans have the view and understanding of their country as requiring people to work hard for better lives. Unlike in the developing countries, Americans work hard due to various factors that could largely be related to the American dream. Some people could even have more than one job in order to survive (Cohen). The Lost Boys have a major role to play in order to have better lives. Their dreams would only come true through hard work.
Education
I believe that the Lost Boys view education as a non-significant aspect of their economic or social basis of development as long as they have found refuge and better life in the United States. This is due to their former lifestyles in Southern Sudan. Contrary to this perspective, education is a personal tool of promoting individual development both economically and socially. Again based on my understanding, education is a tool for national development and economic growth. Through education, people are in a better position to act in unison in promoting social and economic development (EssayForum.com). Personal development is only aided by the country’s development, which is enhanced by rich education.
The ‘typical’ American perspective of education is that education is a major tool for social, political, and economic development. Education gives and individual more and better opportunities to choose from but the less educated are only limited to fewer economic choices in life. This does not only apply in the United States but in all other countries of the world. The Lost Boys have nothing strong as far as believing in the power of education is concerned. This could be based on their former lifestyles back in their home country where nomadic and farming lifestyle was their major source of income. They could have the perception that they could live happily and successfully without meaningful education in the United States as long as they can easily communicate in English (American Documentary, Inc.). Some could aim for low education-demanding jobs such as military service. Education not only makes life easier but it is beneficial in other ways such as making life decisions easier, broadening job opportunities, and assisting in the realization of potential talents among individuals (EssayForum.com). Given that every person is talented and gifted differently, education can play a big role is cultivating and exploiting such talents and gifts. Americans are very educated and they believe in education as a knowledge base for building and nurturing skills. Such skills are then used sold problems from an individual level to more collaborative way.
Works Cited
Abadie, Alberto. Poverty, Political Freedom, and the Roots of Terrorism. Oct 2004. 30 Oct 2013 <http://ksghome.harvard.edu/~aabadie/povterr.pdf>.
American Documentary, Inc. Lost Boys of Sudan. 28 Sep 2004. 30 Oct 2013 <http://www.pbs.org/pov/lostboysofsudan/film_description.php>.
Cohen, Jean L. Political Concepts: A critical Lexicon_Federation. 2011. 30 Oct 2013 <http://www.politicalconcepts.org/issue1/federation/>.
Corbett, Sara. The Lost Boys of Sudan; The Long, Long, Long Road to Fargo. 01 Apr 2001. 30 Oct 2013 <http://www.nytimes.com/2001/04/01/magazine/the-lost-boys-of-sudan-the-long-long-long-road-to-fargo.html?pagewanted=all&src=pm>.
EssayForum.com. THE IMPORTANCE OF EDUCATION (beneficial for society on the whole). 23 Jun 2012. 30 Oct 2013 <http://www.essayforum.com/writing-feedback-3/importance-education-beneficial-society-whole-40043/>.
Gryph, PM. Human Nature. 15 Oct 2013. 30 Oct 2013 <http://www.fanfiction.net/s/9281847/3/>.
Walton, Mac. The Purpose of the U.S. Government Per the Constitution. 12 Apr 2007 . 30 Oct 2013 <http://voices.yahoo.com/the-purpose-us-government-per-constitution-283413.html?cat=37>.
WordPress.com. Lost Boys of Sudan: A Study of Intercultural Communication. 6 Mar 2012. 30 Oct 2013 <http://ageer370.wordpress.com/lost-boys-of-sudan-a-study-of-intercultural-communication/>.
Understanding market structures
Market Structures
Student’s Name
Course name and number
Instructor’s name
Date submitted
Understanding market structures
Description of market structures
Market structures are generally described as the number of firms in the market producing similar goods and services. Because of interrelationships and interdependency in the market, market structures greatly influence the different behaviors of individual firms in the market. They help to determine how a firm can price its goods and services. These include four basic market structures that are namely, perfect competition, monopolistic competition, oligopoly and the monopoly structure.
In perfect competition, the market structure is characterized by existence of several players i.e. several buyers and several sellers. Since the players are very many in the market, no one seller can make a decision that can have an impact on the market. The market deals with products that are similar and undifferentiated. The industry thus has products that are homogenous in nature with pure standardization, so that all players sell identical goods and services. The market is so large that the activities of an individual buyer or seller do not affect the market. The pricing and the production levels in this market depends on the demand and supply of the market. These make all the industry players to be price takers. This market structure together with its partner market monopoly is called the extreme forms of market. In this market the products are similar and several and that is the reason why there are several substitutes in the market. This is the reason why when a single firm in the industry raises its price, customers or consumers will shift to the rivals for a better price for a similar service. Therefore the firm loses its share of the market by a slight increase of the prices (Clement, 2013). It also has free entry and exit features as no entry barrier exist. Pure/perfect market structures are generally rare in real world situation. The model is used in the analysis of industries where players exhibit pure competition.
This is a very unique market structure where the producers cannot maintain spare capacity. By spare capacity the economists mean that the firms have ability to exploit the resources in the industry but not to exhaust them one hundred percent. But in the case of perfect market where profitability is critical to the firms ensure that they don’t work with spare capacity and hence utilize the resources fully.
Some markets are described as pure monopoly. In this scenario, the industry has only one producer whose products lack close substitutes. These are mainly firms that offer public utilities or professional sport championships. The market thus has only one seller, making the seller to be synonymous with the industry. In monopoly, there is a single supplier in the whole market. For the purposes of regulation, for instance, in America a monopoly exists when a single firm has a control of more than twenty five percent to itself. Monopolies form due to a variety of reasons that includes; exclusive ownership of resources that are scarce is by one supplier, for instance, windows are Microsoft’s brand with which they have monopoly power. Producers may have patents and copyrights over ideas and designs that last for very many years. During this time the exclusive use of ideas and design is with the inventor. The major characteristics of monopoly are that they can be able to maintain supernormal profits in the long run. For all the firm’s profits are maximized when MC=MR. Secondly we can say that with no close substitutes the monopolists can derive super normal profits all the year (Clement, 2013).
The product of a pure monopolist is very unique making it difficult to get a close substitute. This makes the firm to dictate prices- price maker. This make the firm to have unlimited control of the industry, quantity produced and supplied and prices. The market has barriers to entry due to low pricing and efficiency that come from economy of scale. Entry can only be restricted by legal restrictions such as state control of media. Ownership or complete control of the key resources such as players’ contracts in professional leagues may hamper entry. Since the demand of the market (industry) is actually the demand of the monopolist, the demand curve slopes downward. Due to difficulty in price discrimination and ability to lower prices at will, prices do exceed the monopolists’ marginal revenue.
In monopolistic competition, there exists an imperfect competition that has both characteristics of a perfect market and a monopoly. In the market, there is relatively large amount of firms that offer similar products that are not identical. All players have small percentages of market share. This market structure is related to a monopoly in that the goods can be differentiated and be sold at a price determined by the producer. It is also related to a perfect market since the market allows for free entry and exit; there are several players in terms of buyers and sellers. In short run, the companies in this market structure just like monopoly have the power to generate profits. In the long run, other companies will enter the markets and benefit from part of the profit through differentiation. The firm later becomes more of a perfect competition where they cannot dictate profit or make super normal profit. At complete lack of government intervention this market structure falls under a natural monopoly. The presence of a coercive government monopolistic competition will fall under government granted monopoly. According to Edward Hastings, in his book theory of monopolistic competition, there are many producers and consumers but no single firm has control over the market price. There are few barriers to entry (Kelly, 2013). This situation makes the firms to have very elastic demand curves, though not perfectly elastic. The high level of elasticity is based on the fact that the many market rivals produce goods with very close substitutes. However, the products are more differentiated from each rival’s commodities.
In an oligopoly, there are only few firms that make up an industry. The firms have control over the price just like a monopoly. Every oligopoly all over the world has control over the prices and high barriers to entry. The firms in this market structures are independent and produce nearly identical products, the independence comes about due to the market forces. Three conditions for oligopoly were established by early economists. First, for a market to be oligopolistic, it must have few firms that are large in nature. This is a condition that is essential in distinguishing oligopoly from other market structures. Secondly, for a market to be oligopolistic there must be high barriers to entry as it distinguishes oligopoly from perfect market and monopolistic competition. Thirdly oligopolistic firms can produce products that are similar in nature or are differentiated (Clement, 2013).
Discuss two characteristics of each the market structures
Monopolistic competition market structure has got several characteristics, but in this paper we basically look at two crucial characteristics that have enormously shaped the market structure. The characteristics include existence of differentiated products whereby unlike perfect competition where the products are exclusively similar, in monopolistic competition, the products are highly differentiated. Differentiation means that though the products are substitutes of one another, they have been made to look different from that of other competing firms through different packaging and branding. Therefore for a firm to be able to sell its products they have to do a lot of advertising in order to create market awareness (Kelly, 2013).
Secondly, there is free entry and exit in the market. This is a kind of market structure that is similar to perfect market in this regard, several players both the buyers and sellers are allowed to enter and exit the market at will. When a firm is making supernormal profits other firms will be attracted to join the industry and benefit from this lucrative business and by doing so the monopolistic firms will start to realize normal profit which continues as more and more firms enter the market. When the market is saturated, the firms will start to realize loses hence other firms will start to exit the market until the firms that remain start realizing normal profits (Levy, 2011).
In Oligopoly there are few large firms in the industry and this is one of the most important characteristic of this market structure. The industry deals in products that are difficult to differentiate and the activities of one firm affect the other firm. The firms are few that the information pertaining one firm is known by the other. The prices of the goods are determined by the firm yet an increase or decrease of the prices by a firm is countered by similar reaction by the competitor, therefore it is worthless to increase or reduce prices in order to raise revenue.
Secondly, there are high barriers to entry for other firms to enter the industry; they have to face the several barriers that are created by the other players in the industry. Such barriers include legal barriers, legislative barriers and economic barriers. Legal barriers include the patents and the copyrights yet legislative barriers are attached to state corporations that are created by acts of parliament. On the other hand economic barrier are created by the large amounts of capital required to start the business (Kelly, 2013).
Based on the characteristics of the oligopoly, the industry is very conducive for technical advancements. The oligopolists can use their large sizes and economic profits, to carry out innovations. This situation can be enhanced by the existence of many market barriers that control new entries. Investment in research and development promote oligopolists’ grip in the market.
In Monopoly, there is existence of a Single firm in the industry. In this market structure, the firm is also the industry. There is only one producer who serves several consumers. The firm being the only producers they make supernormal profits in the long run. The firm enjoys monopoly due to the several barriers that exist either due to economic reasons or legal reasons. There is also the determination of the price. Here, the firm determines the market prices but for a firm to sell an extra unit of the product the firm has to reduce the prices and attract more buyers. The prices do not change due to the market forces of demand and supply but if the prices go high the buyers usually panic and avoid purchasing the goods (Levy, 2011).
In Perfect competition, there are several buyers and sellers. This is due to the free entry and exit in the market. The activities of individual buyers and sellers do not affect the market, the price of goods and services are determined by the market forces of demand and supply. There is also existence of non-differentiated goods. In perfect market, the goods and services are similar and are not different from the competitor’s product. The goods are direct substitute of one another and for one to sell an extra unit more than the competitor; they have to establish a customer base of loyal buyers.
In analyzing the demand features of perfect market, focus is made on the demand curve behaviors. The demand curve in the industry, for the individual firms is perfectly elastic. That is, the demand curve is exhibited as a horizontal curve at price. However, for the industry, demand curve does not shoe perfect elasticity feature since all firms are price takers. With the constant prices, increases in the Total revenues due to production of an extra unit would be equal to the industry price. This makes P=MR.
Identify one real life example of market structure
In a Perfect Market an example of the firm that belongs to this category is the aviation industry where there exists different airline companies like the British airways, Qatar airways, emirates airline, jet airways, virgin blue airlines , air Canada and the air china are the major examples in the aviation industry that help illustrate a situation where there are different players in the market and at the same time there are many users of the various services provided in the industry.(Mudida, 2013).
In Monopolistic Competition, an example of firm in this market structure is the Mc Donald’s food stores. They belong under this category of market since they sell highly differentiated food products to a market with several buyers and sellers. The fact that Mc Donald’s can dictate the prices in which they can sell their products without affecting the demand for their goods puts them under the monopolistic market.
An example of firm that falls under the Oligopoly market structure is the British Petroleum company. It trades in the market with few players and competitors such as the shell BP and Kenol/Kobil. They change prices depending on the prices of the other and sometimes they can even form a merger (Mudida, 2013). In Monopoly, an example of a company under the monopoly market is the cable company in India that faces no competition and is characterized by poor quality and poor service delivery to Indian citizens. This is due to its monopolistic nature as compared to the perfect market scenario where it would be challenged to offer better service. (Levy, 2011).
References
Clement, D. (2013). Introduction to economics, New York NY, McGraw Hill
Hastings, E. (2012). Advanced Micro economics, London, Sage
Kelly, G. (2013). Economics and its modern perspectives, New York NY, McGraw Hill
Levy, S. (2011). Economic Theory and Practice, New Jersey, Prentice Hall
Mudida, G. (2013). Modern Economics, Nairobi, Strathmore University Press