In analyzing various types of com petitions, let us take for instance a firm dealing in personal computers. In a perfect competition, this firm would be subjected to high level of competition from other players a fact that would lead it to becoming more innovative in order to arrive at a competitive end and win customers. In monopoly and monopolistic competition, the firm would have the freedom of charging any price since it has a significant control of the market the consumers have no choice but consume the computers it is offering the market at whatever price.
In duopoly, the competition is still low and a slight diversification of the product can make it have a lead in market. For a consumer, a perfect competition is very beneficial as the competition may lead to price reductions as the firms try to win more customers from others (Medley 2004). In addition to price wars for market share, firms tend to ventures into production of better quality products all for the benefit of the consumer. Gross domestic product
The gross domestic product (GDP) does not put into consideration on the quality improvements and inclusion of new products, it understates the true economic growth since it does not adjust for the quality improvements of new products for example computers in the current world are less expensive than the way they were in the past, they have been invented in a new away but they are inexpensive but the gross domestic product links them as the same product not considering there quality and the new products by only looking for the monetary value.
Therefore, the new products are difficult to be measured by gross domestic product despite the fact that it signifies an increase the standards of living. The invention of new products in the market increases productivity and competition which leads to a strong purchasing power and these leads to the standards of living changing; therefore GDP does not recognize the quality and the new product. Accelerating economy Smoothening out of a business cycle by the government is a difficult task in the country with complex economy. All what the government can help is to change the timing of economic crisis.
Therefore, in this case the crisis can show up in a different form and government deficit can be on the increase, hence delaying the crisis may complicate the cycle adding to more difficulties to the government. Therefore, recessions occur as a result of inadequate demand and the government should increase the amount of aggregate demand and bring the economy back into the equilibrium by first expanding the monetary policy and increasing the government spending and cutting down the taxes. In such a case, the government should focus on enhancing a long term growth instead of stabilization.
Diminishing Utility Motivation best defines the good performance of any employee. Employees work well when they are motivated. Motivating the employees by paying them on the additional hours worked for may increase the employee’s utility hence leading to the increase in production in the warehouses (Medley, 2004). Appreciating employee’s additional efforts in the warehouse may be done by giving them small tokens. This may be in form of compensating them for the additional work they have offered in the warehouse which may lead to improvement of the workers on there part time job services.
Rewarding the best employee performance can also lead to increase of working condition in the farm. When employees are awarded for their performance, they tend to get motivated for what they do and hence look for ways to work hard and perform best in the organization for them to be awarded. In this case, they tend to put all the efforts on the good performance of the organization and they try to work well since there work is appreciated either in overtime conditions or during there normal working hours.