Organisation Psychology Essay - 1925 Words

Organisation Psychology (Essay Sample) Content: Name ID Number SectionDateThe case study aims at looking on different problems that affect the human resource in Dolphin Oil Services. Oil sector being one of the major product and service delivery providers in Libya is important to look at it. This will help understand the major problems affecting Libyan economy as whole. Dolphin Oil Services is a Libyan company that was established in 1999 with an aim of providing professional approach to the oil sector. The companys main business is to provide high quality services on the oil related fields (Dolphin, 2012). These fields include engineering, oil drilling, hiring out equipment to the oil and gas operators. The company has managed to deliver its services to majority of its clients with satisfaction. The company has been successful since its establishment and has been one of the best performing in the country and especially in the oil sector. Since its establishment the company has been experiencing increased revenues meaning it is performing as expected. The company also has a recruitment policy on a year basis meaning that even the employees increase every year. The company has gained reputation in the recent years as one of the best performing companies in Libya and specifically the oil sector. The company has been one of the highest contributors of revenue to the government through its payment of taxes. Increased company profits means that the company is in a better position financially and it is growing at the projected rate. To show the companys current position and performance we refer to the annual report on finances. This will be projected from comparing two years that is 2011 and 2012 (Dolphin, 2012).Annual financial figure20122011In millions except per share dataRevenues 1.253.31,135.1Adjusted EBITDA534.8475.4EBIT impairment charges141.3130.5Net income33.7(14)EPS basic0.16(0.07)EPS diluted0.15(0.07)Cash flow from operations480.4355.5Capital expen ditures(whether paid or not)279.9223.5Multi-client cash investment203.9166.7Total assets 3,137.23,035.0Multi-client library334.1310.8Cash and cash equivalent424.7432.6Shareholders equity1,771.71,755.3Net interest bearing debt394.2279.2Looking at the table above one can tell that the company is performing successfully at the oil industry. Looking at the revenue those of 2011 were lower than those of 2012 this can be attributed to increased business as the company gained reputation which helped increase the clients base. Looking at net income in 2011 the company had negative net income which means it was earning losses but this has changed in 2012 and the company has improved to earn millions in net income. This means that the company position and performance in the industry has improved. Therefore, the company has become stable in the past one year. The company has also increased it assets so as to be able to handle it clients and to widen the services it can be able to offer to the clients. The company has also increased the number of employees as compared to 2011 so as to perform better and offer quality services to the clients (Dolphin, 2012).The internal environment of the company is favourable because the management is very friendly to the other staff. They are also supportive to the staff in performing their duties. This favourable working environment is a motivator to the staff to perform their duties in the best way possible. The external environment has been a bit hostile since the over throwing of Late Gaddaffi government which meant that there was no peace in the whole of Libya.Problem identificationThe problem to be reviewed is motivation in the Dolphin Oil Services. Motivation refers to the force that drives employees in an organization to increase their effort to do their duties in a perfect way without being disrupted by any obstacles as they work to satisfy customer needs (Herzberg, Mausner Snyderman, 1959). It can also be defined as how an employee works hard and in a passionate way to accomplish their duties persistently. Most companies works towards motivating their employees so as to increase the companies profits through increased out and productivity (Lauby, 2005).There are many researchers who have laid down strategies on how employees can be motivated to perform their duties and satisfy customer needs. Motivation is any activity that the company owners and management take for the benefit of their employees with an aim of raising their productivity and output (Neuberger Beck, 1978). This is done to bring out the best from the employees giving them the most favorable working environment. There are different ways and methods of motivation as they will be explained in the course of this project (Kehoe, 2007).Motivation among employees is determined by different factors such as how employees enjoy or how they are proud of their job or place of work. Motivation in company runs from the top management to the low level workers. The more the motivated the employees are the more the company is any to realize its goals and objectives. There are so many factors that a company can use to motivate its employees (Rosenstiel, 2001). These factors include better working conditions, better remuneration package, fair promotions, and fair treatment at the place of work. This means that there is no discrimination of any kind such as racial or sexual. Presence of these factors encourages the employees to perform their duties to the best of their ability so as promote the image of the company and help the company to achieve its goals and objectives (Neuberger Beck, 1978). Motivation among employees is a key determinant of how the employees will perform their duties and realize their full potential (Bruggemann, 1976).Solution to the problemIn Dolphin Oil Services the problem of motivation has been evident from the feedback given by the employees during interviews. There were forty (40) respondent chosen at random and the questionnaire was mailed to them and they were to complete it and mail it back. The questions to be answered were related to workers motivation in their place of work. Their responses have been presented in table forms and interpreted in charts and graphs. This will help for better understanding (Bruce, 2003). Employees Motivation responsesQuestion1. How often do you feel there is fair treatment at your place of work?Table 1Job prideFrequencyPercentageAlways1537.5Sometimes2050Never512.25Total40100 EMBED Excel.Chart.8 \s 
Author (2012)On whether the employees are proud of their work, 15 of the 40 respondents who amounted 37.5% of the respondents reported that there always fair treatment in their place of work. 20 out of the 40 respondents who amounted to 50% reported that sometimes there was fair treatment. The remaining 5 out of the 40, these amounted to 12.5% of the respondents answered that there was no fair treatme nt and they cited race as one of the factors of discrimination.Question 2: Does your company provide avenues for employee motivation?Table 2 Presence of motivation avenuesFrequencyPercentageYes2562.5No1537.5Total40100Author (2012) EMBED Excel.Chart.8 \s 
Author (2012)On the factor of whether the company provides avenues for employee motivation, 25 0f the 40 respondents who were the same as 62.5% of the participants were of the observation that avenues for employee motivation are provided, while 37.5% of the respondents were of the view that no avenues are provided by the company to ensure employee motivation. This shows that there are employees who feel that the company does not motivate the employees (Downing and Clark, 2010).Question 3: Do you feel that your organization motivates employees using the following?Table 3Employee motivation factorsFrequencyPercentageJob satisfaction1025Participatory management512.5Recognition and promotions1025Incent ives and salary increment1537.5Total40100Author (2012) EMBED Excel.Chart.8 \s 
Author (2012)On the motivation factors employed by the company, the following results were achieved. 25% of the employees felt that the company provides job satisfaction as a way of motivating employees, 12.5% felt that the company employed participatory management, 25% felt that the company used recognition and promotion to motivate employees, while 37.5% of the respondents felt that Incentives and salary increment was used by the company to motivate employees.Question 4: Does motivation affect employee performance in your organization?Table 4Employee performance in relation to motivationFrequencyPercentageYes2562.5No1537.5Total40100Author (2012) EMBED Excel.Chart.8 \s 
Author (2012)On the study about whether employee motivation affects employee performance, 62.5% of the respondents interviewed were of the view that employee motivation has an effect on how they perform in t heir duties, whether positively or negatively. On the other hand, 37.5% of the 40 respondents interviewed were of the view that employee motivation and performance are not related; hence motivation does not affect employee motivation.Therefore, given the above feedbacks employee motivation is a great problem in the company and needs to be addresses so as the company can continue to deliver the best services to its clients. Majority of the respondents feels that the company has done something little of promoting workers motivation. They feel that employment is important for the growth of the company and better performance of employees. Since implementing employees motivation at once in the whole company it will be expensive the company will start implementing the policy at the departments level. ...

Sacred Groves and Stewardship - Free Essay Example

Sample details Pages: 5 Words: 1551 Downloads: 1 Date added: 2017/09/20 Category Religion Essay Type Argumentative essay Tags: Population Essay Did you like this example? India is a land of varied cultures, religions and people. Unity in diversity is the mantra of the land. Among all these diversifications is found an impressive population of tribal people. These tribal people are believed to be the true inhabitants of India. Almost all the states in India have significant presence of tribal people who constitute impressive portion of the population of the state. The tribal people in India have their own cultures and traditions which are in true agreement with the Indian civilizations and cultures. Population of the tribes in India The population of the tribal people in India crosses 20 million. Each tribe is distinguished from another. The tribal people in India are different not only in terms of physical appearance but also in terms of their cultural identity. The large variety of tribal clans is found in the North East regions of India. States like Assam, Tripura, Meghalaya, Manipur, Mizoram, Nagaland and Arunachal Pradesh have deep conc entration of tribal people. Tribal Cultures in North East Each of the tribes found in the North East regions of the country are marked for their unique and distinguished cultures. They have their own rituals, beliefs, festivals, dances, songs and ways of living. But one thing which is common in all the tribal people is that their cultures display a lot of power, joy, vibrancy and enthusiasm. Their festivals are specifically marked for their hospitality and a strong bond of love for each other. Tribal cultures in Orissa Orissa is one of the Indian states which have impressive number of tribal clans. The tribal culture in Orissa has adapted itself to many of the Hindu traditions prevalent in the region. The true colors of the tribal cultures in Orissa can be seen on occasions like birth, death, marriage and festivals. They make the occasion vibrant with their unique performance of dance and music. Introduction: India has traditionally been the home of different cultures and peop le. Unity in diversity is one of the most prominent features in the people of India. Among the diversified population a significant portion is comprised of the tribal people, the original inhabitants of the land. The tribal culture of India and their traditions and practices pervade almost all of the aspects of Indian culture and civilization. The different tribes in India: In India one can find almost a new dialect, culture, and different people after moving 50 kms in any direction. Likewise the tribal population is also very much varied and diversified. The present tribal population of India is approximately 20 million all together. The tribes each one of them is a distinctive community either migrated from another place or the original inhabitants of the land. These different tribes still inhibits the different parts especially the seven states of the North Eastern part, and almost each and every corner of the land. The distinctiveness of the tribes lies their rituals, culture s, beliefs and above all the harmony in which they survive in unison with nature. Their living perfectly depicts a well balanced give and take procedure that in no way disrupts the ecological balance. Tribal Cultures of India: One has to love tribal culture in India to understand the uniqueness of their culture. Warm hospitality, simple ways of living and sincere judgment of the opinions are some of the traits that mark the tribal cultures of India. Their custom depicts their belief in simplicity. Most of the tribes in India have their own gods and goddesses that reflects the dependence of Tribal people on nature. Except for the few most of the tribes in India is sociable, hospitable, and fun loving along with strong community bonds. Some of the tribes shares patriarchal cultural ties and some of the tribal societies are women oriented. They have their own festivals and celebrations. The tribal people are clinging to their identity despite of the external influences that threa tened the tribal culture especially after their post independence turbulent period. ****************************************************************************** India has habitually upheld its tradition and has sufficed as a home to umpteen cultures and people. `Unity in diversity` is one of the most spectacular features amongst the population of India. Among the diversified population, a significant portion comprises the tribal people, the aboriginal inhabitants of the primeval land. Tribal culture of India, their traditions and practices interpenetrate almost all the aspects of Indian culture and civilisation. The different tribes in India if ever counted can move up to a mind boggling number, with all their ethnicities and impressions. In India almost a new dialect can be witnessed each new day; culture and diversification amongst the tribals can also be admired from any land direction. The tribal population is also pretty much varied and diversified. Quite manifestly, In dian tribal culture should assimilate and mirror a definitive section of the society. The current tribal population of India is approximately 20 million altogether. Each of the tribes is a distinctive community, either migrated from a different place or the original denizens of the land. These various tribes still inhabit the different parts, especially the seven states of the North-eastern region and almost each and every nook of the country. The speciality of the Indian tribes lies in their customs, cultures, beliefs and, in particular, the harmony in which they survive in unanimity with nature. Tribal living perfectly portrays a well-balanced environment, a procedure that in no way upsets the ecological balance. In order to entirely comprehend tribal culture in India, to understand the uniqueness of their culture, a detailed study is very much required by travelling within the society. Affectionate hospitality, undemanding ways of living and earnest judgement of the opinions a re some of the characteristic traits that earmark tribal cultures of India. Their customs mirror their confidence in simplicity. Most of the tribes in India possess their own gods and goddesses, reflecting the dependence of tribal people on nature and animism. Except for the few, most of the tribes in India are affable, hospitable and fun-loving, coupled with potent community bonding. Some of the tribes share patriarchal cultural ties and some of the tribal societies are inclined towards women-oriented issues. They thus have their own festivals and celebrations. Indigenous Cultures The indigenous and ethnic people of the world have learnt to live in most hostile environmental condition in this universe. The most interesting feature associated with these indigenous and ethnic has been found that, they live in localities which are immensely rich in biodiversity. It is estimated that about 300 million indigenous people are living in world, out of which nearly half i. e. 150 milli on are living in Asia, about 30 million of which are living in Central and South America and a significant number of them are living in Australia, Europe, New Zealand, Africa, and Soviet Union. A list of some of these prominent ethnic and indigenous people is presented in table -1. These ethnic and indigenous people have played a vital role in conservation of environmental management and development process as they posse’s traditional knowledge which has been useful in Eco-restoration. It has been noticed that these people know how to live with harmony in nature. Indigenous Tribes in India In India, 68 million people belonging to 227 ethnic group and comprising of 573 tribal communities derived from six racial stocks namely Negroid, Proto- Australoid, Mongoloid, Mediterranean, West Breachy and Nordic exists in different part of the country (Pushpgandhan 1). These ethnic people mostly the indigenous tribals live close in the vicinity of forests and have managed and conserv ed the biodiversity of their localities since long time. These tribals take shelter from forest and utilize wild edible plants both raw and cooked. The flower and fruits are generally eaten raw where as tubers, leaves and seeds are cooked. Tribals utilize forest produce, forest timber and fuelwood. These tribals are living in forest since ages and have developed a kind of affinity with forests. India is a country with large ethnic society and has immense wealth due to which it is rich in biodiversity. There are 45,000 species of wild plant out of which 9,500 species are ethnobotanically important species. Of these 7,500 species are in medicinal use for indigenous health practices. About 3,900 plant species are used by tribals as food (out of which 145 species comprise of root and tubers, 521 species of leafy vegetables, 101 species of bulbs and flowers, 647 species of fruits), 525 species are used for fiber, 400 species are used as fodder, 300 species are used in preparation a nd extraction of chemicals which are used as naturally occurring insecticides and pesticides, 300 species are used for extraction of gum, resins, dyes and perfume. Indigenous Culture and Religions In addition to these a number of plants are used as timber, building material and about 700 species are culturally important from moral, cultural, religious, aesthetic and social point of view of. Indian sub-contient is one of the twelve mega-centres of biodiversity representing two of the eighteen hotspots of biological diversity one occurring in Western Ghat and another in North- Eastern Himalaya (Zeven and Zhikovsky 3). Floristically 141 endemic genera belonging to over 47 families of higher plant occur in India In India 11. 95% of the world’s biodiversity has been conserved by ethnic people in many ways(Arora,4). Botanical survey of India has reported 46,214 plant species are found in India of global flora of these 17,500 represents flowering plants. Thirty seven of these are endemic and found in North -East of India. Don’t waste time! Our writers will create an original "Sacred Groves and Stewardship" essay for you Create order

Prevention And Prevention Of Measles - 1163 Words

Shots might hurt and can be life-threatening but it can be worth to prevent disease. Immunization is also known as vaccination. They are essential for adults as well as children to protect against infectious diseases like measles, mumps, rubella, hepatitis B, polio, tetanus, diphtheria, and many others diseases (â€Å"Immunization: MedlinePlus,† 2014). Measles is one of the highly infectious diseases caused by virus among all of them. It spreads through the air by coughing and sneezing. It starts with the symptoms like fever, runny nose, cough, sore throat, red eyes and rashes spread all over the body. Usually measles can be prevented with complete recovery as soon as it is vaccinated with MMR (measles, mumps, rubella) vaccines but it can lead†¦show more content†¦Parents, whose babies were exposed to measles, were so frightened with this outbreak that they started looking for pediatricians. Some parents even had to take leave from their work to get their babies vacci nated and keep them safe. Also, some families were asked not bring their infected babies into the crowded area by their pediatricians. Clinics started running low on vaccines due to more babies were being vaccinated at the same time causing a major shortage of vaccines. According to Centers for Disease Control and Prevention (CDC) infants should get their first measles shot at the age of 12 to 15 months and if they are traveling to other countries than at the age of 6 months (Szabo, 2015). One of the pediatricians Jay Gordon said that measles outbreak changed parents’ opinion and he was receiving many calls for vaccine consultations. He also said, â€Å"People are viewing the vaccine differently. The people in the pharmaceutical industry must be thrilled† (Szabo, 2015). According to Szabo, studies have found 40% of parents do not vaccinate their children at all or on time due to some myths about vaccines (Szabo, 2015). I do not believe such myths because I know that va ccination is for our safety. I suggest parents to consult specialist for more information regarding vaccination and its side effects. Parents should understand life is more valuable than some myth for their children. A rumor about vaccines causing autism is one of reason why measles is

Economics Natural Monopoly

Question: Discuss about theEconomicsfor Natural Monopoly. Answer: Introduction Various forms of market exist in an economy. These markets are differentiated with respect to their attributes or characteristics. Among the various forms of market, natural monopoly is one such form of market, where a single firm has experienced monopoly. The firms are considered as one of the largest suppliers of the products in the market. They are regarded as the most efficient organization in order to handle the supply of the whole market. This helps in analysing the beneficial effect to the society and to the firm as well. Natural monopolist produces at quite a large scale which thereby provides them with the opportunity to produce the total supply of the market by being cost advantageous. The cost incurred in the market to produce the total supply of the market by two or more firms is quite larger than that of the natural monopolist (Browning Zupan, 2014). Hence, it is quite beneficial for the market to promote the existence of just one firm in the market. The government r a regulatory board of the government takes the initiative for setting the price of the natural monopoly products in the market. This essay provides a clear view of how government utilises various economical theories related to different forms of market, imperfections in monopoly, regulation of natural monopoly and how government plans to execute the process of pricing the products. These theories and government regulator implementation would be explained further with the help of an example taken on the Australian Rail Network. This would provide a better analysis on how the government plans to fix the price of the natural monopolist at the point where the demand curve cuts the average total cost curve. Analysis Forms of market, difference between perfect competition and monopoly and their profit In an economy, a market structure is analysed based on it characteristics and its competition with the other firms. Variation in the attributes of the market helps in framing a particular form of structure of the market, which provides an effect on its products, pricing strategies and competition with the other firms. Depending upon these attributes, a market can be stated as perfect competition or imperfect competition market. Under perfectly competitive market, perfect competitive firms exist. Under an imperfect competition market, monopoly, monopsony, monopolistic competition and oligopoly exists (Case, Fair, Oster, 2014). Among the stated names of the market forms, the two extreme forms of market are perfectly competitive firm and monopoly. Under a perfectly competitive market, the products that are produced by the firms are homogeneous in nature. The buyers and sellers in the market have complete knowledge regarding the product and the prices of the product, hence, each firm in such a market is a price taker. Under a monopoly firm, the firm is the sole proprietor of the market. The products that are produced by the firm are heterogeneous in nature, hence, they set the price of the product on their own will. A monopolist firm practices price discrimination among its customers. It could be stated that the perfect competitive market results in greatest amount of economic surplus (Chopra, 2013). Yet, it i s always found that a monopolist would produce less and charge a higher price in the market for producing the same good or service as that of the perfect competitor firm. This can be illustrated with the help of the following diagram. Figure 1: Effect of Change of a Firm from Perfect Competition to Monopoly (Source: As Created By Author) In the above figure 1, the price of the products of the perfectly competitive firm is fixed where the demand and supply curves of the industry intersect each other. Hence, the price and quantity of the firm is fixed at Pc and Qc respectively. As the perfectly competitive firm is transformed into a monopoly firm, the demand curve of the firm is no longer inelastic in nature. The demand curve that is faced by the monopoly firm is downward sloping. The equilibrium point of the firm is achieved where the marginal cost curve of the firm intersects the demand curve. This results in the price of the product to be pm and the quantity to be Qm. It is quite easily visible from the following diagram that the perfectly competitive for there are m has to provide a quantity greater than that of the monopoly firm and the price charged by them is lesser than the monopoly firm . Hence, it could be stated that when a firm changes from a perfectly competitive framework to a monopolist, there are consid erable chances of earning profits in the industry. Inefficiencies in Monopoly A firm that belongs to the monopoly from f market charges higher price for a lower quantity of products to be supplied in order to attain maximum profit from the business. Hence, this shows that a monopolist firm reduces consumer surplus along with the reduction in economic inefficiency of the market. There is an existence of a deadweight loss in the market (Cooper John, 2013). Hence, it could be stated that the organization exerts social costs in the market thereby promoting certain inefficiencies of the market structure. The inefficiency of the monopoly form of market can be illustrated with the help of figure 2. Figure 2 : Inefficiency In Monopoly Market (Source : As Created By Author) In figure 2, the firms equilibrium is at the point where the marginal cost curve intersects the marginal revenue curve. The equilibrium price and quantity is pm and qm respectively. If it would have been a perfectly competitive market, the price and quantity supplied by the firm would have been Pc and Qc. Hence, it could be stated that there is a reduction in consumer surplus equivalent o the area of the rectangle A. Correspondingly, with the fall in the quantity of goods to be produced in the economy, there is a considerable amount of deadweight loss, equivalent to the area B and C. Under natural monopoly, the number of firms in the industry has been reduced to one. The firm who are acknowledges as natural monopolists are in their long run and have incurred high fixed costs. It is efficient for the market to have just one efficient firm. This would help in increasing the efficiency of the market. Yet, being a single firm in the economy, the natural monopolist charges a high price of its products, raising the inefficiencies of the market and incurring social costs. In order to control such a situation of analysing market power, the government or some other government regulatory body often regulates the natural monopoly firm. Government Regulation The purpose of the government intervention in the monopoly market is to reduce the social loss and increase the social welfare which decreases due to monopoly practices. Following the ideas of the Redmond (2013), it can be said that the producer operating in the natural monopoly market can increase the price of the commodity to such an extent that the social benefits gets reduced. Due to this, the consumers will also lose utility from consuming that commodity. The government intervenes in such cases and pushes the price down to counter the situation in the natural monopoly, as given in the figure below: Figure: Government intervention in a natural monopoly market. Source: As created by the author. According to the figure above, the monopolist who is operating in a natural monopoly market can produce at that point of output, where his marginal revenue (MR) and marginal cost (MC) equals. In other words the condition can be stated as MR = MC. Following this condition, the monopolist charges a price of Pm, at which Qm quantity is sold. In the views of Stiglitz (2015), this condition causes the society to incur a cost, which no market agents receive. This cost is also named as the dead weight loss. This loss incorporates the buyers losing a portion of their consumer surplus. The government balances this loss by creating a price ceiling, above which the monopolist operating in the natural monopoly situation, cannot charge the consumers. This price level benefits the both the buyers and the society as a whole. The monopolist also receives normal profit due to this. As stated by Scitovsky (2013), the government has the opportunity to stet the price to the point of output where the demand or Average revenue is equal to the producers marginal cost. This will make the producer supply Qe amount of commodity at the price level Pe. This is the efficient level of the market. Here the consumer can buy more commodity at a much lower price, and hence receives a huge benefit. On the other hand, the producer gets back his marginal cost following this price level. The marginal cost is associated with only the variable cost of production. Hence, following this price level the producer will not be able to cover his fixed cost. Therefore, in the long run, the producer incurs loss. This ensures that the social welfare is not maximized here as all the market agents are not getting benefitted at the Pe level of price. As stated before, the government goal is to set a price level which will ensure that the dead weight loss is decreased and the social welfare increases at the same time. So, if the government sets the price level at Pe, the social welfare is not increased at all as the producer incurs a loss which amounts same as his fixed cost of production. In the views of Schubert (2013), this situation will make the producer leave the market as he will not be able to cover his cost. The government can address this issue by creating the price ceiling which will make the producer operate at the output level where his average cost of production and demand or the average revenue are equal (AR = AC). This situation presents a price level Pr and the corresponding level of quantity will be Qr. This situation represents the market situation which is similar to that of a perfectly competitive market structure. Here, the price level is lower than the monopoly market, but higher than the efficient level. In other words, the situation can be presented as Pm Pr Pe. According to Lim (2015), at this level of price the producer will be able to cover both of his variable and fixed cost in the long run. The amount the producer will be supplying at this level of price is Qr which is greater than the monopoly level and lower than the efficient level. This can be written as Qe Qr Qm. The producer at this point of production enjoys the normal profit. The level of price is also reasonable for the consumers. The society also faces no dead weight loss, hence it can be said that this price-output level (Pr, Qr) represents a Pareto efficient situation, deviation from which will ensure social loss. The railway system of Australia, where the government has opted for privatization for some of the parts of the railways, presents a situation of natural monopoly. The government of Australia ensured that two private companies are not operating at the same zone, as it will reduce revenue, efficiency, and social welfare. According to Simon (2015), the government countered this natural monopoly situation with a decreased price level which increases the social welfare and balances the consumer surplus. The private companies are also enjoying more or less normal profit, which helps those to cover both their variable and fixed costs of production. Conclusion The natural monopoly advocates of a situation where no other can seller can enter the market without any active barriers creation process by the producer, due the cost structure in the market. The situation gives the producer the potential to abuse his power by making the price level very high for generating more profit. The government thus intervenes in the market and the production process. The governments goal here is to maximize the social welfare, reduce the dead weight loss, balancing the benefits for both the consumer and the producer. For this purpose the government sets the price at that point where the demand or the average revenue is equal to the average cost. The same situation is observed in the Australian railway system, where the government has opted for privatization, and then set the price at a Pareto efficient level. It benefits both the consumers and the sellers while increasing the social benefit and reducing the dead weight loss of the society. Bibliography Browning, E. K. (2014). Microeconomics: Theory and Applications. Wiley Global Education. Browning, E. K., Zupan, M. A. (2014). Microeconomics: Theory and Applications. . Wiley Global Education. Case, K., Fair, R., Oster, S. (2014). Principles of Microeconomics. Pearson Higher Ed. Chopra, A. (2013). PAT, 2(3.2). CMP: INR1, 398 Buy. , 3-9. Cooper, R., John, A. A. (2013). Macroeconomics: Theory Through Applications. publisher not identified. Lim, C. S. (2015). Dynamic natural monopoly regulation: Time inconsistency, moral hazard, and political environments. Stanford : Graduate School of Business, Stanford University, mimeo, November. Redmond, W. (2013). Three modes of competition in the marketplace. American Journal of Economics and Sociology , 423-446. Schubert, C. (2013). Is novelty always a good thing? Towards an evolutionary welfare economics. In The Two Sides of Innovation. Springer International Publishing. Scitovsky, T. (2013). Welfare Competition. Routledge., (Vol. 103). Simon, H. (2015). Prices and Decisions. In Confessions of the Pricing Man . Springer International Publishing. Stiglitz, J. E. (2015). Economics of the Public Sector: Fourth International Student Edition. . WW Norton Company.