Natural Monopoly Essay

 

 

This paper studies monopoly as an economic category. The research is mainly focused on the distinctive features of natural monopoly as a type of monopolistic structure of the market economy. The author came to the conclusion that the concept of natural monopoly remains to be a disputable issue, since in spite of all advantages of the productive efficiency, in the absence of competition there is a high probability of the abuse of monopoly for the purpose of profit maximization.

In the beginning of new millennium the development of infrastructure, international commercial relations, and information networks inexorably involves creation, and development of the huge international companies. The turnover of the biggest of them exceeds even the gross domestic product of some countries. And there is nothing strange, that such companies hold leading positions on national and international markets, and at times, excluding competitors, become monopolists. 

 

Company has a monopoly, if it is the only supplier of a product, and if it does not have any substitutes. The principal reason for the occurrence of monopoly is barriers at the admission to the market, which do not allow other companies to compete with a monopolist. Such barriers appear in following cases: only one company owns a key resource of manufacture; a government has given exclusive rights for manufacture of certain production to one company; because of the production costs the highest efficiency of output is only possible in the presence of one manufacturer on the market.

The monopolistic market is considered to be the market of the seller. The profits of the manufacturer are in this case guaranteed by the production volume, and by the high prices. Actually, in the given conditions the buyer is always forced to accept the price, which is considerably above cost.

There are very few examples of pure monopoly. It is rather one of the ideal concepts, as far as all companies aspire to full monopoly, but cannot reach it, or reach it only for a certain period. Though, this rule has one exception- natural monopolies. In case of natural monopoly the scale effect allows one monopolist to serve all market, having costs lower, than in the presence of two or more competing managing subjects in the given market. Such monopolist uses its resources the most effectively. Being a large enterprise, it possesses high technical equipment and big capacity. These factors conduct to the higher labor productivity and the decrease of the product unit costs. Thanks to the lowest possible cost price of the manufacture of the given goods, natural monopoly is a desirable phenomenon for a society. Otherwise the government interferes for the purpose of regulation of the monopolists activity. Practically, the natural monopoly can be resulted by availability of unique property (power supply systems, pipeline and rail transport, unique natural resources, post), necessary for branches, where long-term average costs are minimum only in case, when the market is served by one manufacturer.

The naturalness of monopoly can be determined by its attitude, or to be more precise, by its fear of competition. Genuine natural monopoly knows, that size matters, and if competitors enter the market, they will not manage to seize the greater share. A typical example of all mentioned above are railways in Sweden. The government of this country conducted a classical vertical division into an infrastructure and rail transportation, and the free competition in the market of transportation was allowed. For 10 years the new companies managed to win from monopoly only about 10 % of the market. The scale effect protects monopoly better than any entry restrictions.

Monopolies have natural advantages in those markets, where the action of entire branch as a single mechanism is important. Though, such situation can has its disadvantages. Companies have no stimulus for self-restriction of monopolistic abuse, since the client cannot leave them for other competitors on the market. It often leads to such inevitable consequences, as overpricing, uneconomical treatment of expenses, indifference to the requirements of the clients, artificial understating of the production volume, and a full set of other consequences of the monopoly, accompanied by ultrahigh monopolistic profit earning. Such conditions indicate the classical fiasco of the market, the contradictions, which the market is not able to overcome without state intervention. For this reason in all countries natural monopolies are either state companies, or are under tight state control.

World practice of the state regulation of natural monopolies has more than a century of history. In the USA, first federal control commissions were set up in ХІХ century. For example, the Federal Power Commission was organized in 1930. Today in the USA under the state regulation remain such spheres of natural monopolies, as railway, aviation and other types of transport; a number of fuel and energy manufactures (gas supply, power generation); rendering of numerous public services. State regulation concerns mainly those aspects of business activities in these areas, which make a direct impact on the interests of the consumers: price-level, production volume, bounds of the outlets, requirements to the quality of the goods and services. The most widespread method is that the prices of certain goods and services are established by state structures.

Conclusion 
Natural monopoly in the market economy is considered to be a contradictory phenomena. As a type of monopolistic structure, it combines all negative displays of market monopolization, and can result the abuse of the unlimited market power. At the same time, acting as a necessary element of the production process, and representing socially significant branches of the national economy, the natural monopoly plays the important positive role in the market economy. The state regulation of natural monopolies should be aimed first of all at the termination or control of price growth of the natural monopolies production on the domestic market, and simultaneous preservation of these prices at the level, which allows extended reproduction. In this case the national policy can ensure further prosperity of both monopolies and citizens of the country.

 

General Education Requirements Essay

The general education requirement is the set of courses which must be completed in order to give students a wide range of knowledge in a specific area. In order for students to specialize in a given field they must first gain basic awareness and understanding of the main principles within the art or science they aim to pursue. General education courses usually prepare students for further study by laying down the foundations of the area of knowledge and exercising skills which will prove necessary for continued learning.

Two such courses are those offered by the university of Kansas and Catawba College. The courses are of a similar nature and offer a basis for English language studies. Catawba College’s English 1103 course is a part of the general education writing program meant to provide a background in critical reading and writing. The course gives students the opportunity to get acquainted with rhetorical thinking and to use it in their analytical reading approach as well as when creating texts.

As part of a general education course in language studies the English 1103 also aims to enhance the understanding of students when reading texts. The course gives students the necessary knowledge to handle academic writing styles and gather and appropriately quote the required information from both electronic and print sources. Other fundamental knowledge covered includes organization and structure of writing, punctuation, style, diction, and use of language. (The General Education Writing Program, Catawba College)

A similar course offered by the University of Kansas is English 102. The classes, like the ones provided by Catawba, are meant to give students the necessary tools for academic writing and understanding of texts. Kansas’s English 102 includes knowledge on quotation mechanisms as well as a deep understanding and knowledge of at least one system of documentation. The course is meant to teach students how to explore various topics with the process of writing and how to use it as a tool for deepened understanding. Students are expected to learn how to collaborate on an academic level and conduct research as well as how to use and understand language in a flexible way. The course includes a research element, meant to encourage students to apply their knowledge as well as gain experience. (Goals for English 102, Kansas University)

Both the English 1103 and the English 102 general education courses have a similar content and offer the skills necessary for students to adequately use language and writing. The structure of both courses provides attendees with knowledge of basic academic writing principles such as quotation and research practices, critical approaches toward texts and written expression skills. In order to prepare students for further studies, or simply give them a good foundation in language knowledge, both courses develop skills for understanding written texts. Both courses use summary or synthesis as a tool for enhanced understanding, and build on that foundation in order to enable students to develop their own argumentation and critical thinking. Once a student is able to properly understand writing, select the appropriate language tools, and conform to quotation requirements, they should be able to create appropriate academic writing.

Essay on Adult Learning

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The importance of providing opportunities for adult learning, including tuition reimbursement, is frequently underestimated in business settings. However, doing so is crucial for long-term success of any company. There are three major reasons behind this, and each of them will be dealt with in greater detail in the subsequent paragraphs. Highlighting them very briefly, they are linked with the issues of organizational efficiency, employee retention, and attraction of top talent. First of all, highly skilled workforce is the major determinant of company’s productivity and competitiveness. Although this argument might seem commonplace and self-evident, it is ignored by human resource managers far too often to be easily discarded. Secondly, a company that invests in human capital and offers opportunities for self-development to its workers is likely to see its internal branding efforts enhanced: if employees perceive their company as a place where they can learn and grow, a stronger commitment and psychological alignment with goals of the company will emerge. In the end, internal branding results in lover turnover rates and consequently less time and resources spent on hiring and training new employees.

As Jones (2001) rightly observes, offering support for continuous learning of employees is a practice established many companies with a view to “enhancing both their educational opportunities and prestige, both of which also help to retain top employees” (p. 43). Finally, allocating time for adult learning and supporting workers who engage in it, financially and otherwise, advances company’s external branding efforts. In the global war for talent, corporations go to great lengths to attract the best graduates. Most of such graduates care about self-development opportunities their potential employers have to offer.




While all the claims presented above seem plausible, they are also backed by a growing body of empirical evidence. Starting with the first argument, increasing the overall level of employees’ education is likely to give a company competitive advantage over its rivals. Adult education opportunities “enhance productivity, profits, and global competitiveness as workers apply their education to the marketplace” (Jones, 2001, p. 43). Investing in company’s intellectual capital will have a bearing on employees’ problem-solving skills, their ability to deliver quality customer service, and many other related areas. In the third millennium, it is “clear that in many enterprises the value is not in the tangible assets but in the intangible ones” (Brooking, 1996, p. 11). While the concept of intangible assets is broad and encompasses such things as systems, brands, and intellectual property, employees’ knowledge and competencies form the core element of intangible capital of successful companies.

Moreover, given the rapidly changing technological environment, acquisition of new skills becomes an imperative in many industries that rely on the extensive use of ICTs. Continuous learning is an absolute prerequisite for employees’ ability to keep up with technological trends. As Barley (1998) rightly observe, “[t]he shortage of knowledgeable workers in technical areas and rapid advances in technology have energized adult learning in the United States” (p. ii). An effective workforce is not only knowledgeable but also adaptable. This consideration is of particular importance in an organization like mine. Each employee of the Aviation Communication Center should be able to quickly and competently react to any kind of situation and adapt to using different types of technological solutions. Therefore, it is important to ensure that “education is proactive, anticipating and shaping the future” (Jones, 2001, p. 43) rather than merely reactive to past or existing problems.

The second reason why adult learning in corporate settings is important is associated with the issue of psychological contract employees develop with their organizations. The term “psychological contract” is used to denote mutual expectations employees and managers have of each other and informal beliefs and relationships that exist between them. If employees expect their companies to invest in their self-development, a failure to do so on the part of the company can lead to a breach of the psychological contract, which in turn might have devastating consequence for operational performance of the company.

Under a quite different scenario, a company that clearly communicates its policy to provide opportunities for adult learning and offer support to those who are unable to bear the costs associated with education themselves can both attract and retain qualified workforce. While the issue of attracting talent will be discussed later, the impact adult learning opportunities can have on employee retention will be discussed here. The negative consequences of high turnover are well-known to any human resource manager. In order to decrease or even avoid turnover, it is necessary to ensure that alignment of personal goals, values, mission and vision of every employee and that of the company is taking place. This is achieved best if employees perceive their company as a “caring organization”: such organizations ensure that their employees are given the possibility to advance their knowledge and acquire new skills on a continuous basis. Thus, possibilities for adult learning “provide added incentives for employees to stay where they are rather than leave for a rival company or even another country” (Jones, 2001, p. 43).

Finally, making time and allocating financial resources for continuous education is likely to attract the most energetic, motivated, and goal-oriented employees. Every career-minded person arrives to a new company with a certain vision of his or her future progress. Experience together with education is the prerequisite of smooth and quick movement up the career ladder. However, employees in most cases find out to be themselves responsible for choosing and paying for their education; a company that helps them with it is likely to look very attractive in the eyes of job-seekers.

Although there might be many more reasons why adult education in corporate settings is a desirable practice, the aforementioned three reasons are significant enough to make any company reconsider its approach to self-development of its employees. Firstly, increasing the overall level of education of the workforce enhances company’s competitive standing. Continuous acquisition of new skills and competencies is indispensable in the rapidly changing technological environment. Secondly, employee retention has been found to be unambiguously linked to educational opportunities companies have to offer. Finally, attraction of top talent becomes easier if a company provides potential employees with a clear plan for their future career progression.

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essay on Corruption in India

Tags:essay on Corruption in India , Corruption in India, Corruption,essay,essay on corruption,Corruption In India,Corruption,Corruption.

Corruption is today a world-wide phenomenon. In our own country some people in high positions lave been charged for it.

A corrupt person is termed immoral, dishonest and unscrupulous in his dealings. His disregard for honesty, righteousness and truth results in his alienation from society. He is treated with contempt. But as erosion of values leads to decadence, remedies for the social malaise remain elusive, and so no amount of contempt can eradicate corruption which is a symptom of decadence.

Corruption is the most virulent when crises everywhere threaten the very existence of the society and the faith in life is shaken. It has always been there like tie leech, but when the system grows weaker and the boat flounders, it gets bolder and drains its victims of the last drops of their blood.

The older the system the weaker it grows and fails to solve the riddles of life that grows more complex every day. So men lose faith in it and let it drift down. At this point corruption takes over and plunges the entire society. After Second World War the old system with all its values was left in a shambles. The crippling effects of the war, the recession and depression, and uncertainties in a faithless world of maimed and moribund encouraged cynicism in a section of the population.

This section included the government officials dealing in essential commodities. They found the post-war conditions ideal for fishing in troubled waters and jetting richer. They formed a sort of vicious circle in which moral values and honest intentions no longer held valid. The flourishing black market in essential commodities, adulteration of even baby- food, bribery, fraud and economic, political and administrative manipulations with an eye on earning profits has brought untold misery to the people.

One would say the corruption in India has an ancient lineage; it is sanctified by tradition. The author of the Arthasastra made some remarks on government officials of his time which are relevant even today: "Just as it is impossible not to taste the honey or the poison that finds itself at the tip of the tongue, so it is impossible for a government servant not to eat up at least a bit of the king's revenue. These in the post­war world became only bolder while eating up government money and accepting bribes.

Today, when India is free, these officials representing all government departments are very close to the most corrupt businessmen who are too unscrupulous to let any opportunity of amassing profits slip. This collusion broadens the base of the vicious circle and corruption spreads 'like wild fire to engulf the entire society. The political and social guardians depend only too much on the richer communities and they look indulgently on while these communities hold the entire society and the government to ransom.

Corruption starts at the top and percolates down to the whole society. Such corruption cannot be confined to the towns alone. It is as widespread in the villages where the dishonest officials and the traders carry the germs of the disease. The tyranny of confusion and price rules the land and the people are helpless victims of corruption everywhere.