Revolutionizing the World’s Top Corporations “SIX SIGMA” Essay

OBJECTIVE This research project is structured as a piece of the educational program. It helped me to take advantage of the intensity of the Six Sigma development that’s changing some of theâ world’s best organizations. Six Sigma activities have counted billions of dollars in investment funds, emotional speeds up, solid new client relationshipsâ€in short, wonderful outcomes and rave surveys. SIX SIGMA Six Sigma is presently as indicated by numerous business advancement and quality improvement specialists, the most well known administration procedure ever. Six Sigma is unquestionably an exceptionally huge industry in its own right, and Six Sigma is presently a gigantic ‘brand’ in the realm of corporate turn of events. Six Sigma started in 1986 as a measurably based strategy to decrease variety in electronic assembling forms in Motorola Inc in the USA. Today, around twenty years on, Six Sigma is utilized as a sweeping business execution technique, everywhere throughout the world, in associations as assorted as neighborhood government offices, jails, emergency clinics, the military, banks, and multi-nationals organizations. While Six Sigma usage proceeds apace in a significant number of the world’s biggest companies, numerous associations and providers in the counseling and preparing networks have additionally seized on the Six Sigma idea, to bundle and give a wid e range of Six Sigma ‘branded’ preparing items and consultancy and administrations. Six Sigma has likewise produced numerous and different business books regarding the matter. Six Sigma, it may appear, is assuming control over the world. Strikingly while Six Sigma has become a broadly utilized ‘generic’ term, the name Six Sigma is really an enrolled trademark of Motorola Inc., in the USA, who originally spearheaded Six Sigma techniques in the 1980’s. The first and actually right spelling is by all accounts Six Sigma, instead of 6 Sigma, despite the fact that lately Motorola and GE have each since built up their own provocative Six Sigma logos utilizing the number six and the Greek sigma character. Six Sigma is currently a worldwide brand and something of an upheaval. Yet, what is Six Sigma? Sigma is an estimation that shows how a procedure is performing. Six Sigma represents Six Standard Deviations (Sigma is the Greek letter used to speak to standard deviation in insights) from mean. Six Sigma approachs give the methods and devices to improve the capacity and decrease the deformities in any procedure. Six Sigma is a reality based, information driven way of thinking of progress that qualities defor mity anticipation over imperfection location. Theory: The philosophical viewpoint sees all fills in as a procedure that can be defined,â measured, broke down, improved and controlled (DMAIC). Procedures require inputs and produce yields. On the off chance that you control the sources of info, you will control the yields. This is commonly communicated as the y= f (x) idea. Set of Tools: Six Sigma as a lot of devices incorporates all the subjective and quantitative procedures utilized by the six sigma specialists to drive process improvement. A couple of such devices incorporate factual procedure control (SPC), Control diagrams, disappointment mode and impacts examination, process mapping and so on. Procedure: This perspective on Six Sigma perceives the basic and thorough methodology known as DMAIC. DMAIC characterizes the means a Six Sigma professional is relied upon to follow, beginning with distinguishing the issue and completion with the usage of durable arrangements While DMAIC isn't just Six Sigma Methodology being used, it is surely the most generally received and perceived. Measurements: In basic terms, Six Sigma quality execution implies 3.4 imperfections per million chances HISTORY Since the 1920’s the word ‘sigma’ has been utilized by mathematicians and architects as an image for a unit of estimation in item quality variety. (Note it’s sigma with a little ‘s’ in light of the fact that in this setting sigma is a conventional unit of estimation.) In the mid-1980’s architects in Motorola Inc in the USA utilized ‘Six Sigma’ an a casual name for an in-house activity for lessening surrenders underway procedures, since it spoke to a reasonably elevated level of value. (Note here its Sigma with a major ‘S’ in light of the fact that in this setting Six Sigma is a ‘branded’ name for Motorola’s activity.) (Certain specialists had shifting suppositions concerning whether the absolute previously was Mikal Harry †felt that estimating abandons as far as thousands was an inadequately thorough norm. Subsequently they expanded the estimation scale to parts per million, portrayed as ‘defects per million’, which incited the utilization of the ‘six sigma’ wording and selection of the promoted ‘Six Sigma’ marked name, given that six sigma was regarded to compare to 3.4 parts †or deserts †per million.) In the late-1980’s after the achievement of the above activity, Motorola stretched out the Six Sigma strategies to its basic business forms, and essentially Six Sigma turned into a formalized in-house ‘branded’ name for a presentation improvement system, i.e., past absolutely ‘defectâ reduction’, in Motorola Inc. In 1991 Motorola affirmed its first ‘Black Belt’ Six Sigma specialists, which shows the beginnings of the formalization of the authorize preparing of Six Sigma strategies. In 1991 additionally, Allied Signal, (a huge aeronautics organization which converged with Honeywell in 1999), received the Six Sigma strategies, and guaranteed huge upgrades and cost investment funds inside a half year. It appears that Allied Signal’s new CEO Lawrence Bossidy educated of Motorola’s work with Six Sigma thus drew closer Motorola’s CEO Bob Galvin to figure out how it could be utilized in Allied Signal. In 1995, General Electric’s CEO Jack (Welch knew Bossidy since Bossidy once worked for Welch at GE, and Welch was dazzled by Bossidy’s accomplishments utilizing Six Sigma) chose to actualize Six Sigma in GE, and by 1998 GE asserted that Six Sigma had created more than seventy five percent of a billion dollars of cost investment funds. By the mid-1990†™s Six Sigma had formed into a transferable ‘branded’ corporate administration activity and philosophy, strikingly in General Electric and other huge assembling partnerships, yet in addition in associations outside the assembling area. Continuously 2000, Six Sigma was viably settled as an industry in its own right, including the preparation, consultancy and execution of Six Sigma procedure in a wide range of associations around the globe. In other words, in barely ten years, Six Sigma immediately became not just a massively famous procedure utilized by numerous companies for quality and procedure improvement, Six Sigma additionally turned into the subject of numerous and different preparing and consultancy items and administrations around which grew a lot of Six Sigma bolster associations Focal CONCEPTS We can obviously see from the definitions and history of Six Sigma that numerous individuals believe the model to be equipped for utilizing tremendous execution upgrades and cost reserve funds. None of this obviously occurs all alone. Groups and group pioneers are a basic piece of the Six Sigma strategy. Six Sigma is along these lines a technique which requires and energizes group pioneers and groups to assume liability for executing the Six Sigma forms. Fundamentally these individuals should be prepared in Six Sigma’s techniques †particularly the utilization of the estimation and improvement instruments, and in interchanges and relationship abilities, important to include and serve the necessities of the inside and outer clients andâ suppliers that structure the basic procedures of the organization’s conveyance chains. Preparing is consequently likewise a basic component of the Six Sigma approach, and loads of it. Six Sigma groups and strikingly Six Sigma group p ioneers (‘Black Belts’) utilize an immense range of instruments at each phase of Six Sigma execution to characterize measure, break down and control variety in process quality, and to oversee individuals, groups and correspondences. At the point when an association chooses to actualize Six Sigma, first the official group needs to choose the methodology †which may ordinarily be named an improvement activity, and this base procedure should concentrate on the basic procedures important to meet client desires. This could add up to twenty or thirty business process. At the top level these are the primary procedures that empower the association to enhance merchandise and ventures and flexibly them to clients. Certain inside this is a comprehension of what the clients †interior and outer †really need and need. A group of chiefs (‘Black Belts’ typically) who ‘own’ this procedures is liable for: distinguishing and understanding these procedures in detail, and furthermore understanding the degrees of value (particularly resistance of variety) that clients (inward and outside) expect, and afterward Measuring the viability and effectiveness of each procedure execution †remarkabl y the ‘sigma’ execution †ie., is the quantity of imperfections per million activities (genius rate if suitable obviously). The hypothesis is totally consistent: understanding and afterward improving the most significant ‘delivery-chain’ procedures will normally build productivity, consumer loyalty, upper hand, and benefit. Effortlessly said †precarious to accomplish †which is the thing that the Six Sigma system is for. SIX SIGMA PROCESS The term â€Å"six sigma process† originates from the thought that in the event that one has six standard deviations between the procedure mean and the closest particular breaking point, as appeared in the chart, essentially no things will neglect to meet determinations. This depends on the estimation technique utilized in process capacity considers. Ability examines measure

Writing homework Essay Example | Topics and Well Written Essays - 750 words

Composing schoolwork - Essay Example It isn't as though progress can't occur in a state controlled protectionist framework, and be serious with a free market framework. In any case, the author’s attestations that facilitated commerce is better than protectionism by and large is a persuading contention generally speaking. To move from national legislative issues to an increasingly worldwide viewpoint, it is additionally critical to comprehend the job of work in different nations as opposed to its job in the US, and Roberts focuses generally on a worldwide workforce. For instance, the job of worker's guilds in Europe is more totalized than it is in the United States. In the U.S., associations speak to correct and explicit pieces of businesses and call for additional advantages and worker’s rights to be handled with singular organizations. In Europe, associations speak to the whole business in light of the fact that their gatherings are assembled and are all the more impressive. They call for less explicit issues, since they are speaking to a whole industry in Europe, however. Additional major developments are conceivable along these lines, yet the progressions are less explicitly outfitted to the quick worries of laborers in a specific section of the business. As far as work support in the execu tives, this was inconceivable numerous years prior, yet is turning out to be increasingly normal both in the U.S. what's more, globally. Workers are all the more habitually being remembered for the dynamic procedure and correspondence is developing among representatives and supervisors, regardless of political misfortunes and difficulties in the US including organization enrollment and association thickness. â€Å"The genuine decision is between a powerful world and a static world - a universe of urging individuals to dream and obtain the abilities to make those fantasies work out as expected and a universe of urging individuals to be content with what they have and to dream less† (Roberts, 2000). The contention for and against global financial matters is essentially an impression of greater contention about hypothetical issues of protectionism and organized commerce, which was referenced previously. In this worldwide contention,

How to Think Like an Optimist and Stay Positive

How to Think Like an Optimist and Stay Positive Happiness Print How to Think Like an Optimist and Stay Positive By Kendra Cherry facebook twitter Kendra Cherry, MS, is an author, educational consultant, and speaker focused on helping students learn about psychology. Learn about our editorial policy Kendra Cherry Reviewed by Reviewed by Amy Morin, LCSW on July 01, 2019 facebook twitter instagram Amy Morin, LCSW, is a psychotherapist, author of the bestselling book 13 Things Mentally Strong People Dont Do, and a highly sought-after speaker. Learn about our Wellness Board Amy Morin, LCSW Updated on December 09, 2019 More in Self-Improvement Happiness Meditation Stress Management Spirituality Holistic Health Inspiration Brain Health Technology Relationships View All In This Article Table of Contents Expand Avoid Negative Self-Talk Try Humor Cultivate Optimism Keep Practicing View All Back To Top Can you learn how to think positive? You have probably heard a thing or two about the benefits of positive thinking. Research suggests that positive thinkers have better stress coping skills, stronger immunity, and a lower risk of cardiovascular disease. While it is not a health panacea, taking an optimistic view rather than ruminating on negative thoughts can benefit your overall mental well-being. So what can you do to become a more positive thinker? A few common strategies involve learning how to identify negative thoughts and replacing these thoughts with more positive ones. While it might take some time, eventually you may find that thinking positively starts to come more naturally. Here are four things you can do to think positive. Avoid Negative Self-Talk Self-talk involves the things you mentally tell yourself. Think of this as the inner voice inside your mind that analyzes how you perform and interact with the world around you. If your self-talk centers on negative thoughts, your self-esteem can suffer. So what can you do to combat these negative self-talk patterns? One way to break the pattern is to start noticing when you have these thoughts and then actively work to change them. When you start thinking critical thoughts about yourself, take a moment to pause and assess. Paying attention to your self-talk is a great place to start when trying to think more positively. If you notice that you tend to engage in negative self-talk, you can start looking for ways to change your thought patterns and reframe your interpretations of your own behaviors. Stress management expert Elizabeth Scott advises people to start by noticing their thought patterns and then focus on changing these into more positive ones. When you catch yourself engaging in a negative thought, mentally telling yourself to Stop can help break the pattern. Positive Self Talk for a Better Life Try Humor It can be tough to stay optimistic when there is little humor or lightheartedness in your life. Even when you are facing challenges, it is important to remain open to laughter and fun. Sometimes, simply recognizing the potential humor in a situation can lessen your stress and brighten your outlook. Seeking out sources of humor such as watching a funny sitcom or reading jokes online can help you think more positive thoughts. Cultivate Optimism Learning to think positively is like strengthening a muscle; the more you use it, the stronger it will become. Researchers believe that your explanatory style, or how you explain events, is linked to whether you are an optimist or a pessimist.?? Optimists tend to have a positive explanatory style. If you attribute good things that happen to your skill and effort, then you are probably an optimist. Pessimists, on the other hand, usually have a negative attributional style. If you credit these good events to outside forces, then you likely have a more pessimistic way of thinking. The same principles hold true for how you explain negative events. Optimists tend to view bad or unfortunate events as isolated incidents that are outside of their control while pessimists see such things as more common and often blame themselves. By taking a moment to analyze the event and ensure that you are giving yourself the credit you are due for the good things and not blaming yourself for things outside of your control, you can start to become more optimistic. 5 Steps to Being More of an Optimist Keep Practicing There is no  on-off switch for positive thinking. Even if you are a natural-born optimist, thinking positively when faced with challenging situations can be difficult. Like any goal, the key is to stick with it for the long-term. Even if you find yourself dwelling on negative thoughts, you can look for ways to minimize negative self-talk and cultivate a more optimistic outlook. Finally, do not be afraid to enlist the help of friends and family. When you start engaging in negative thinking, call a friend or family member who you can count on to offer positive encouragement and feedback. Remember that to think positively, you need to nurture yourself. Investing energy in things you enjoy and surrounding yourself with optimistic people are just two ways that you can encourage positive thinking in your life. A Word From Verywell Learning how to think positive is not a quick fix, and it is something that may take some time to master. Analyzing your own thinking habits and finding new ways to incorporate a more positive outlook into your life can be a great start toward adopting a more positive thinking approach.

Pride And Prejudice Essay - 1361 Words

Pride and Prejudice The novel Pride and Prejudice by Jane Austen was originally titled First Impressions. This is significant because it reflects the values and attitudes of 19th century England, and portrays the main themes of the novel. It is set in England during the 1800’s and Austen focuses on a society whose opinions are based on first impressions. This is achieved through cultural context, characterisation, narratorial commentary, and methods/techniques. During the 19th Century, first impressions were very important. The reader is presented with Meryton, a highly structured class society which judges people on superficial qualities, such as physical appearance, social status, clothes, possessions, behaviour, dialogue. The†¦show more content†¦Although the Bennetts are ‘upper/middle class’, there are divisions between each class, so they are looked upon as at the ‘lower’ end of the scale. It is Darcy’s pride that forces him to believe he is better than others, mainly because of the amount of money he has. Mr Darcy feels as if he can be rude to anyone he likes, because the society of Meryton is ‘socially and financially lower’ then himself. After seeing Jane together with Mr Bingley at the dinner party, Darcy’s first impressions (which allow him to think that he has the right to interfere in their relationship) force him into believing that Jane (coming from a family less wealthy then his own) is only after Mr Bingley for security, and financial stability. Instead of realising the love they have towards each other, Darcy allows his pride to blind him of the truth and foolishly assume that only a lady of equal status (as his) is worthy of Bingleys love. Mr Wickham is another example of first impressions based on superficial qualities. His first impressions are very favourable and he is ‘socially accepted’ into the Meryton circle. â€Å"But the attention of every young lady was soon caught by a young man, whom they had never seen before, of most gentlemanlike appearance, walking with an officer, on the other side of the way.† (Page 62) His charming personality, and impressive first impressions soon gathered the acceptance and approval of everyone in the community. Ironically, hisShow MoreRelated Essay on Prejudice and Pride in Pride and Prejudice1535 Words   |  7 PagesPrejudice and Pride in Pride and Prejudice      Ã‚  Ã‚  Ã‚  Ã‚  Ã‚   In any literary work the title and introduction make at least some allusion to the important events of the novel. With Pride and Prejudice, Austen takes this convention to the extreme, designing all of the first and some of the second half of the novel after the title and the first sentence. The concepts of pride, prejudice, and universally acknowledged truth (51), as well as the interpretation of those concepts, are the central focus ofRead MorePride And Prejudice By Pride Essay990 Words   |  4 PagesThe Effects of Pride Pride is the feeling of satisfaction when someone achieve something, someone close to you achieves something, or something somebody owns or has is admired by others. Being proud of yourself or someone else is not always bad. However, some believe pride is negative and can change how a person thinks and feels about certain things. It can be taken either way depending on who, why, and when it is. Many people have written articles and have done research to determine whether itRead More The roles of pride and prejudice in Pride and Prejudice1404 Words   |  6 PagesBecoming an immediate success in the contemporary novel public in early nineteenth century, Pride and Prejudice has proved to be the most popular of Jane Austens novels and remains a classic masterpiece two centuries later. The title itself describes the underlying theme of the book. Pride and prejudice, intimately related in the novel, serve as challenges to the cherished love story of Darcy and Elizabeth. It is interesti ng to see how these two nice people were blinded before realizing that theyRead MorePride and Prejudice1472 Words   |  6 PagesElizabeth#8217;s Pride and Darcy#8217;s Prejudice? Jane Austen#8217;s Pride and Prejudice is a timeless social comedy which is both satirical and full of sentiment. The title refers to the personalities of the two main characters and cues the reader to Austen#8217;s broader thematic purpose: to satirize nineteenth century manners and morals, especially as they relate to courtship and manners. Although both characters contain both these traits, it is mainly Mr. Darcy who exemplifies #8216;pride#8217;Read More Pride and the Prejudice 1543 Words   |  7 Pagesâ€Å"The power of doing anything with quickness is always prized much by the possessor, and often without any attention to the imperfection of the performance.† (1) Said Mr Darcy. This is one of the worlds most popular novels, Jane Austens Pride and Prejudice has charmed readers since its publication of the story of the amusing Elizabeth Bennet and her relationship with the aristocrat Fitzwilliam Darcy. During this essay it will explore the construction of characters , in particular it will be ElizabethRead MorePride and Prejudice2105 Words   |  9 Pagesrelationship, although back then divorce was never thought of either, where as today it is not rare at all. In these marriages, money was the only consideration. Love was left out, with the thought that it would develop as the years went by. In Pride and Prejudice, Jane Austen comments that marriage in her time is a financial contract, where love is strictly a matter of chance. This is clearly evident from the very first line of the novel. Charlotte Lucas states that happiness in marriage is entirelyRead MorePride and Prejudice1236 Words   |  5 PagesThe path to marriage initiates in the very first paragraph of Jane Austen’s Pride and Prejudice. This courtship novel begins with the premise that â€Å"a single man in possession of a fortune must be in want of a wife† (pg. 5) Throughout the competition for the single men, characters are naturally divided by the norms of their social standing. However, the use of social conventions and civility further divides them. The characters in need of the most moral reform remain unchanged, leaving a path forRead MorePride and Prejudice1906 Words   |  8 PagesPride and Prejudice tells a story of a young girl in the midst of a very materialistic society. Jane Austen uses the setting to dramatize the restraints women had to endure in society. As the novel develops, we see how women have to act in a way according to their gender, social class, and family lineage. Elizabeth Bennet’s sisters represent the proper societal lady while Lizzy is the rebel. Through her characters Austen shows how a women’s happiness came second to the comfort of wealth. As the plotRead MoreIrony in Pride and Prejudice995 Words   |  4 PagesIrony in Pride and Prejudice Irony forms the alma mater of Jane Austen’s novels. Likewise, â€Å"Pride and Prejudice† is steeped in irony of theme, situation, character, and narration. Austen uses it to establish the contrast between appearance and reality. As one examines â€Å"Pride and Prejudice†, one discovers the ironic significance of how pride leads to prejudice and prejudice invites pride. Importantly, the novel elucidates how both â€Å"Pride† and â€Å"Prejudice† have their corresponding virtues bound upRead More Essay on the Irony of Pride in Pride and Prejudice1262 Words   |  6 Pagesof Pride in Pride and Prejudice      Ã‚  Ã‚   Jane Austen uses the elements of both pride and prejudice to develop the satire in her novel. Austen presents pride as both a vice and a virtue. Austen first introduces pride as a vice of arrogance and prejudice, but as the characters in the novel develop so does the concept of pride. Towards the end of the novel pride becomes the vehicle for many of the noble actions taken by the main characters. Austen skillfully interweaves the two parts of pride, the

‘Sonnet XIX When I Consider How my Light is Spent by John...

John Milton’s ‘Sonnet XIX: When I Consider How my Light is Spent’, uses the literary techniques of metaphorical representations, irony and satire to convey it’s themes of religion, specifically concerning the use of ones God given talents, and the issue of disability upon and individuals religion to an audience in a political climate enduring through a drastic state of change in structure and values in a cultural revolution that valued a persons by their measure such as a poet through their authorial work, yet still remains significant to audiences today through satirical interpretation. In Milton’s true style, what the poem says and what the poem means to convey are two drastically different things entirely. The initial meaning of the†¦show more content†¦This pitiful attitude is debated by literary critics as an attitude not present throughout Milton’s work which indicates the poems satirical nature as â€Å"If the nineteenth sonnet reveals an abnegation of purpose, a suspension of will, then it surely records emotions transient and uncharacteristic† . Barton argues â€Å"Sonnet XIX is a curious poem, full of irony, doubt, and yearning that are only intensified in their reception by the reader’s presumptive anticipation of lament.† Barton continues that â€Å"Based on such considerations, [of the poets past work] I contend that it would have been unbearable, if not impossible, for someone of Milton’s talents, ego, and aggressive temperament to subscribe even momentarily to the kind of namby-pamby â€Å"pity poor me† resignation implicit in the historical reading of [the last line]† The use of satire contributes immensely to the significance of the poem and how it is interpreted. The controversy over the interpretation of the sonnet is localised in the last line. â€Å"Milton consciously wants to worry his reader, to force him to doubt the correctness of his responses, and bring him to the realization that his inability to read the poem with any confidence in his own perception is its focus† Barton uses biblical passages to point out the ironic contradictions throughout Milton’s work and interprets the poem as drawing comparisons between angels and men,

Monopoly, Perfect Competition, Imperfect Competition Free Essays

string(115) " economic term you have encountered \(perhaps terms such as normal profits, economic profits, transfer earnings\)\." NATIONAL QUALIFICATIONS CURRICULUM SUPPORT Economics Microeconomics The Theories of the Firm [ADVANCED HIGHER] Acknowledgements This document is produced by Learning and Teaching Scotland as part of the National Qualifications support programme for Economics. First published 2002 Electronic version 2002  © Learning and Teaching Scotland 2002 This publication may be reproduced in whole or in part for educational purposes by educational establishments in Scotland provided that no profit accrues at any stage. ISBN 1 85955 929 8 contents Introduction1 Section 1:The theory of perfect competition3 Section 2:The theory of monopoly9 Section 3:The theory of monopolistic competition and oligopoly13 Section 4:Resource allocation/externalities19 Section 5:Suggested solutions23 INTRODUCTION There are basically two types of market situation: (a)Perfect competition – in this market, firms have no influence; they are price takers. We will write a custom essay sample on Monopoly, Perfect Competition, Imperfect Competition or any similar topic only for you Order Now (b)Imperfect competition – this market includes monopoly, oligopoly and monopolistic competition; firms are price makers and can influence the market place. Every firm must obey three rules in order to survive: To maximise profits, firms will produce at that output where MC=MR and at the same time MC must be rising. †¢A firm will continue to produce in the short run as long as it can cover its variable costs. †¢In the long run a firm must cover its total costs. SECTION 1 In order to build a model against which we can compare other market situations, certain characteristics have to be assumed: †¢There are a large number of buyers and sellers in the market. †¢Buyers and sellers have perfect knowledge of goods and prices in the market. †¢All firms produce a homogeneous product. Products are identical. †¢There is freedom of exit and entry to the industry. There is perfect mobility of the factors of production. In the real world it is almost impossibl e for all of these conditions to exist at the same time. Foreign exchange and agriculture are markets that have some of the above characteristics: currency is a homogeneous product and in agriculture there are a large number of farmers supplying the market without influencing the price. Can you identify other types of markets that are almost perfectly competitive? The demand curve No one firm can alter output enough to influence price. Therefore each firm faces a perfectly elastic demand curve. Each firm sells at a given market price and this price coincides with the firm’s AR and MR. The firm can sell as much as it wants at this price, however if it charged above this price, demand would fall to zero. [pic] The supply curve The short run supply curve of the firm in perfect competition will be that part of its marginal cost curve that lies above its average variable cost curve. MC is the lowest price at which a firm would sell an extra unit, and when we remember the second rule above that the firm must obey to maximise profit, we have correctly identified the firm’s short run supply curve. pic] The equilibrium of the firm The firm is in equilibrium when MR=MC. This is where profits are maximised or losses minimised. For the perfectly competitive firm the only decision to be made is how much to produce to maximise profits. Firms cannot influence price because their output is a very small part of market output. Equilibrium of the Firm – Perfect Competitio n [pic] Short run In the short run, firms earning supernormal profits will attract other firms into the market looking for higher than normal rewards. Remember that normal profit is just enough to keep the entrepreneur in business. Perfect Competition – Short Run [pic] Long run In the long run, as new firms enter the industry, established firms will expand their output to get more of the supernormal profits. Eventually, all firms earn normal profits as the supernormal profits are competed away. Long run equilibrium of the firm We saw how supernormal profits attracted new firms into the industry. After a time, the existence of subnormal profits would cause firms to leave the industry. Supply would fall and prices rise. Hence long run equilibrium is one of normal profits only. Perfect Competition – Long Run pic] Advantages of perfect competition †¢Because firms produce where MC=MR=Price, allocative efficiency is achieved. †¢Productive efficiency is also achieved because the firm produces at the lowest point of the AC curve. †¢Prices are lower because of increased competition. †¢Because of perfect knowledge firms must keep up to date and innovate or they will be forced to leave th e industry. †¢In the long run all firms will earn normal profits. †¢Cartels and other restrictive agreements cannot emerge to exploit consumers. †¢Perfect competition can be used as a model in economic analysis. Disadvantages of perfect competition †¢Firms have little time to benefit from inventions because they quickly enter the public domain. †¢Since firms make only normal profits they might not have the funds to undertake expensive research that often yields the most outstanding discoveries. †¢Firms might not benefit from economies of large-scale production. †¢In order to prevent abuse of the consumer, some industries are best run by the state as natural monopolies and so perfect competition would be inappropriate. †¢Perfect competition is a goal that cannot be reached in the real world. Student exercises/activities 1. To what extent does agriculture approximate to being a perfect market? (10 marks) 2. Study the diagram below and answer the following questions: [pic] (a)Why does the short run supply curve of the firm begin at S1? (2 marks) (b)At S2 the firm breaks even. Explain what this means. (2 marks) (c)At S2 the firm also earns normal profits. Explain why they are sometimes called the entrepreneur’s transfer earnings or the opportunity cost of capital. (2 marks) (d)Is normal profit the same for each entrepreneur? Justify your answer. (2 marks) (e)Economic profits and losses are signals to owners of factors of production. Explain why this statement holds true only in the short run in a perfectly competitive market. (4 marks) (f)If the long run supply curve of a perfectly competitive firm is a horizontal line, what assumption can we make about the firm’s costs? 3. Read through the notes on perfect competition and write down each new economic term you have encountered (perhaps terms such as normal profits, economic profits, transfer earnings). You read "Monopoly, Perfect Competition, Imperfect Competition" in category "Papers" Then make precise definitions of these terms from an economics dictionary or textbook. Section 2 A monopoly market structure is assumed to have the following characteristics: †¢In theory the monopolist is the only firm in the industry. However, under UK law any firm controlling more than a 25% share of the market is liable for investigation as a monopoly. †¢The monopolist is a price maker. †¢The monopolist is shielded from competition because barriers to entry prevent new firms from entering the market. Barriers to entry To exist, monopolies must have high barriers to entry. The main barriers are: government restrictions like a licence, permit or certificate to enter an industry †¢patents that make it illegal for others to use an inventor’s ideas for a number of years †¢ownership of factors of production that do not have close substitutes †¢difficulty in raising the necessary capital †¢economies of scale particularly in the case of a natural monopoly. Monopoly equilibrium The monopolist can stop new firms entering the industry through technical or statutory barriers. If the monopolist is making supernormal profits in the short run, they are likely to continue into the long run. Note that the monopolist will not always make supernormal profits, as they will depend on the relationship between consumer demand and production costs. Monopolistic Competition – Short Run [pic] Pay particular attention to the following points illustrated above: †¢There is no supply curve in monopoly. Supply and demand are dependent on one another. †¢There is no distinction between short run and long run because of the barriers to entry. †¢Profit maximising output is OQ where MC=MR. †¢The price charged in the market is OP and is determined by the demand curve. †¢Supernormal profits are shown by the rectangle PXYZ enclosed by AR and AC. Price is OP and cost is OZ. †¢MR falls at twice the rate of AR and becomes zero when total revenue is maximised. Advantages †¢An industry with a flat-bottomed average cost curve benefits from economies of scale. This type of industry requires a large amount of capital equipment. Examples include the car and chemical industries. Hence the public benefits if the LRAC remains constant as output expands because more cars or chemicals are produced at cheap prices. †¢If a monopolist invests in research and development the public can benefit from product development. Disadvantages Monopoly can lead to greater inequality in the distribution of income because the monopolist charges a price higher than MC. †¢Again because the monopolist charges above MC it is allocatively inefficient. Underproduction of the product occurs and not enough of the nation’s resources are allocated to its production. Price discrimination The monopolist can discriminate in two different way s: †¢It can discriminate between units sold to the same buyer as in the case of gas or electricity. †¢It can discriminate between different buyers, for example when it charges children and OAPs rates different to that for adults. The monopolist charges consumers different prices in separate markets and, because the costs of production are the same in each market, it is able to increase its profits. [pic] Profit is maximised where MR=MC. In Market A, the demand is less elastic compared to Market B that has a more elastic demand. When the monopolist splits the market and charges a different price in each, it will earn more profits than if it charged one uniform price to all. The monopolist can discriminate in a number of ways: †¢It can charge a different price at different times of the day (like a gas company) or at different times of the week (like a rail company). It can charge different rates to different income groups. Students, the unemployed and OAPs can often get into a football match or a race meeting at a reduced rate. †¢It can charge different prices in different parts of the country. The same house built by a national builder will cost more in the south-east of England than it will in the n orth-east of England. What enables a monopolist to discriminate effectively? †¢Different buyers in the market must have different elasticities of demand. †¢The market must be able to be sub-divided into separate divisions according to time, place or income. The monopolist must be able to keep markets separate without great difficulty. Points to note about monopoly: †¢A monopolist will only produce where the demand curve is elastic. MR has to be positive for MC and MR to be equal. †¢The only distinction between short run and long run is in the changes in cost structure of the industry. Barriers to entry prevent us from making the kind of distinctions we can make between short and long run equilibrium in perfect competition. †¢There is no supply curve in monopoly because there is no linear relationship between demand and supply. Student exercises/activities 1. Explain why, for the monopolist, price is always greater than MR. (2 marks) 2. What does the price elasticity of demand facing the monopolist depend upon? (3 marks) 3. Are monopolies always profitable? Justify your answer. (3 marks) 4. State the three conditions that must exist for a monopolist to be able to price discriminate. (3 marks) 5. Draw two diagrams, side by side, to show long run equilibrium under perfect competition and under monopoly equilibrium. Study the diagrams and answer the questions that follow: (a)Prove that the monopolist wastes resources. 2 marks) (b)State why the perfectly competitive firm is allocatively efficient. (2 marks) (c)Explain why the perfectly competitive firm is productively efficient. (d)Describe how profit is shown in the monopolist’s diagram and explain what kind of profit it is. (4 marks) (e)The perfectly competitive firm appears to be making no profit. Is this true? Explain your answer. (3 marks) (f)At wha t output do both maximise their profits? (1 mark) (g)Identify the supply curve for the perfectly competitive firm and explain why there is no supply curve for the monopolist. 4 marks) (h)Explain how government decides whether or not a monopoly should be allowed to continue. (2 marks) (i)Suggest an action government can take to regulate a monopoly and explain how it might be expected to work. (3 marks) 6. Make definitions of the new terms you have encountered. SECTION 3 Perfect competition and monopoly are two extreme theories of the firm. Remember that earlier we classified all theories other than perfect competition as imperfect. Hence monopoly, oligopoly and monopolistic competition can be described as imperfect competition. Some textbooks describe all theories that exist between the two extremes as imperfect. This classification is also accepted by examiners. What distinguishes oligopoly from monopolistic competition is the number of firms in the industry. An oligopoly has few sellers, whereas in monopolistic competition there are a large number of sellers. Monopolistic competition The theory of monopolistic competition assumes the following characteristics: †¢There is free entry and exit in the industry. †¢The industry is made up of a large number of buyers and sellers. †¢Firms produce differentiated goods. Each firm faces a downward-sloping demand curve because products are not homogeneous. †¢Firms maximise profits in the short run. †¢There is perfect knowledge in the market. Because firms produce slightly different products under different brand names, each firm has a certain amount of market power. Hence a price rise will not result in it losing all its customers. However, b ecause there are a large number of firms producing acceptable substitutes, market power is weak. The more differentiated the product, the greater the market power and so the less elastic the demand curve will be. Equilibrium for a monopolistically competitive firm Short RunLong Run Monopolistic Competition – Short RunMonopolistic Competition – Long Run [pic] In the short run monopolistic competitors earn supernormal profits and will attract new firms into the industry. As in perfect competition these profits will be competed away until in the long run all firms are earning normal profits. The rectangle PXYZ will gradually disappear as each firm’s share of demand falls and its demand curve moves to the left. In the long run the demand curve is a tangent to AC but, unlike perfect competition, it is at a point where AC is falling. How much supernormal profit a firm earns in the short run will depend on its ability to differentiate products by using brand names and advertising. Look how important to consumers designer labels and certain brand names are today! Note that in both diagrams price is greater than MC and so the firm is allocatively inefficient. Again the firm in each diagram does not produce at the lowest point on the AC curve making it productively inefficient. The firm has excess capacity. In the long run two rules hold: †¢AC=AR because freedom of entry ensures that a firm cannot earn supernormal profit; †¢MC=MR because the firm wants to maximise profit. Oligopoly Oligopoly is often described as competition among the few. A few interdependent suppliers control most industries in our country and so these industries are imperfectly competitive and oligopolistic. What causes an industry that started as competitive to develop in this way? The main reason is to take advantage of economies of scale and in industries like the car industry this has been made possible through technical progress. Barriers to entry and mergers have also played their part in the formation of oligopolies. Oligopoly is difficult to analyse because one firm’s behaviour can cause retaliation from another. Firms continually have to devise strategies to keep them ahead of their competitors. Oligopoly has the following assumed characteristics: †¢A small number of suppliers control most of the market. †¢Barriers to entry are likely to exist, although in some industries they can be low. †¢Firms are interdependent, unlike in perfect competition where firms ignore changes in the behaviour of their competitors. †¢Prices are controlled by the supplier not the consumer. †¢A kinked demand curve for the firm is likely to exist, although the demand curve for the industry is normal. The majority of oligopolistic markets tend to have: collusion in some form, although restrictive trade practices have been illegal since 1956; †¢non-price competition in the form of branding, advertising, free offers and after sales services; †¢price rigidity – prices often remain fairly constant despite changes in costs of production, unlike in perfect competition where prices continually fluctuate to monitor such changes; †¢average cost curves tend to be flat-bottomed allowing the firm to take advantage of economies of scale. Oligopoly: the kinked demand curve [pic] The kinked demand curve helps to explain price rigidity that tends to occur under oligopoly. The rival firms tend to agree a market price at X. Demand is elastic above this point and so any rise in price will cause a fall in revenue as consumers buy rival products. Below X demand is inelastic and a fall in price will cause a fall in revenue and a price war would break out. Hence firms will use non-price competition to maintain or increase their market share. Examples of this include free gifts or coupons when petrol is purchased. This model of oligopoly has its critics. It implies knowledge of MC and MR that firms just do not have. The model does not explain how price was determined or what happens when price is eventually changed. Other firms could react in a number of ways to a change in the price of a competitor’s product not just in the one way that this model assumes. However, it does help to explain why price rigidity occurs and why firms use non-price strategies to maintain market share. Collusion The kinked demand curve model assumes that competitors would react in a particular way. But they could, of course, react in other ways. This uncertainty is a characteristic of oligopoly and it arises because firms in the industry are interdependent. Interdependence means that the oligopolists are always unsure how competitors will react to any action they take. One firm’s actions have consequences for all. Consequently entrepreneurs try to reduce risks by colluding. Collusion takes place in a cartel – for example, OPEC can fix the price or quantity of oil to be offered for sale. Remember such actions are illegal in the UK. The purpose of the cartel is to earn supernormal profits. Price leadership Often in an oligopolistic market one firm will make the first move to change price, usually because costs have risen and profits are falling. Competitors may be in the same position and so are willing to accept the change. This price leader is often the largest firm in the industry and so smaller firms do not challenge its actions. This almost simultaneous change in price is called parallel pricing and of course it makes the kinked demand curve irrelevant. Student exercises/activities 1. Construct a table to compare the four market structures we have studied using the following headings: Market structure, Number of sellers, Restricted entry and exit, Long run supernormal profits and product differentiation. Place these headings horizontally and the four market structures vertically. 2. Suggest reasons why some firms tend towards oligopoly while others tend towards monopolistic competition. (4 marks) 3. Explain why some firms use different methods of non-price competition to increase their market share. (3 marks) 4. Profit maximisation always occurs where marginal revenue is equal to marginal cost. Why is this so? (2 marks) 5. Behaviour in three of the markets we have studied is predictable. Explain why this is so. (4 marks) 6. Using diagrams contrast price and output determination in perfect competition and monopolistic competition in both the short run and the long run. 7. Is price leadership a form of collusion? Discuss. (4 marks) 8. Make definitions of new economic terms. SECTION 4 We have seen how resources are allocated by prices determined by the forces of demand and supply in the market place. We have also seen that some market structures are more efficient than others when it comes to resource allocation. Allocative efficiency is present if the marginal cost of production equals price in all industries. If Price=MC in all industries in an economy, it would be impossible to make any one better off without making another worse off. This allocation of resources is said to be Pareto efficient. Again allocative efficiency exists when an economy uses its resources to produce the goods and services consumers want. Hence one of the main macroeconomic aims of government is to achieve the optimal allocation of resources and that is when resources are efficiently used in such a way as to maximise the welfare of consumers. We saw earlier that only the perfectly competitive market is both productively and allocatively efficient. No real economy is like this. Imperfections exist in all real economies and they prevent the efficient allocation of resources through the market mechanism. Instead an under-or over-allocation of resources to a certain economic activity takes place. Market failure results. There are four main types of market failure: 1. Externalities. They exist when the action of producers and consumers, other than through the normal workings of the price mechanism, affect not only themselves but also third parties. They can be negative like pollution and congestion. Each is a cost to society. Externalities can be positive, like the benefits society gains from better education and improved medical practice. Negative externalities result in over-production; positive externalities result in under-production. Sometimes prices and profits are not good indicators of the real cost to society of an economic activity and so externalities emerge. Hence alternative systems of allocation need to be considered to obtain a more desired allocation of resources. 2. Imperfect competition. In imperfect markets consumers are often at the mercy of oligopolies and monopolies. Governments and trade unions can also influence demand and supply in a market and this leads to inefficiency. It also leads to an unequal distribution of income and wealth. Imperfect markets fail to be efficient and equitable. 3. Market forces cannot provide public goods and often do not do a good job of providing certain merit goods. Again the market has failed to produce what every society needs. 4. Market economies tend to experience sudden business fluctuations. The UK went into recession in 1990–2. Japan has still not recovered from a current recession. Governments are trying to devise tighter monetary policies to avoid the worst extremes of trade cycles. Whenever market failure occurs there has been a re-allocation of resources to some less desired point on the Production Possibility Curve. Consequently government steps in to try to redress the balance. Monopoly and government intervention A government can control a monopoly by using price controls. Look at Figure 1. A price control lowers the price to the consumer from P1 to P2 and at the same time increases output from OQ1 to OQ2. Society now benefits from an improvement in allocative efficiency. Figure 1 [pic] A government can impose fines or regulations to correct externality situations. However, a major difficulty that immediately arises before this can be done is to calculate or estimate the value of externalities such as pollution and congestion. Look at Figure 2. If the polluter ignores the pollution then he will produce at Q2 where demand equals supply. However, if the government insists that certain regulations must be complied with, such as installing filters, the supply curve will move to the left because costs have risen. The quantity being produced will now contract to Q1. Consumers are now paying a price that reflects the spill-over cost and over-production has been corrected. There has been an improvement in resource allocation because the government has taken action against market failure. Figure 2 [pic] Markets can sometimes under-produce as in the case of medical or educational provision. Look at Figure 3. Without grants and subsidies Q1 places would be provided. With grants to students and subsidies to universities and colleges more places can be offered, and many students who have the necessary qualifications can now afford to take up a place. Q2 places are now available and society will eventually benefit from the increased number of educated people. Again government has taken action to correct market failure. Thus we have seen that externalities can be positive or negative and they accrue to a third party. We saw in the case of the chemical firm that negative externalities arose because the firm was concerned only with marginal private costs and ignored marginal social costs. Hence they could produce at a higher output and so create more pollution and possibly congestion. Market failure occurred and the government intervened to force the firm to address the social cost it caused. In our example the government legally restricted the activity. It could have forced the firm to internalise the spillover or it could have taken over the firm. Again firms consider only marginal private benefit, the benefit that the firm receives. They ignore the spillover benefit that society gains from consuming this good or service, the marginal social benefit. It gave grants and subsidies. It could have given tax incentives or even taken over the service and provided it free. Consequently government steps in to increase this under-production and remove the welfare loss that results from free market equilibrium. See Figure 3. Figure 3 [pic] Student exercises/activities 1. Explain how the actions of large corporations and trade unions can influence demand and lead to non-optimal allocation of resources. (3 marks) 2. Examine the case for providing a) public goods, and b) merit goods free to the consumer. (6 marks) 3. Why might some economists argue against providing products free to the consumer? (3 marks) 4. Why does free market equilibrium not always represent the true cost of production? (3  marks) 5. At what point is the optimum level of production of a public good reached? (2 marks) 6. Make definitions of new economic terms. SECTION 5 Guideline answers (Perfect competition) 1. There are four basic assumptions underpinning the theory of perfect competition. Do they hold for the agriculture industry? In the UK there are a large number of farmers supplying the market. No farm is large enough to influence price, so this characteristic holds. Farms are relatively easy to buy, especially today because of falling profit margins. Hence exit and entry in the industry are unrestricted. Knowledge of prices and market conditions are good because of constant updating by the farming press using modern technology. Hence knowledge is as perfect as it can be. Products are fairly homogeneous. Bramley apples from one orchard are almost identical to Bramley apples from another, although you could argue that quality/grade of products does vary. Hence there is a fairly strong case to support the statement. 2. (a)Because only above S1 is revenue greater than AVC and only then will the firm be able to make some contribution to fixed costs. (b)At this price the firm makes zero short run economic profit. At this point MR=MC=ATC. The break-even price is the one that yields zero short run profit or loss. c)The opportunity cost of keeping capital in the firm is moving it to the next best earning alternative. Normal profits are just enough to make it worthwhile to keep the capital in the firm. Consequently it is the amount an entrepreneur would earn in an alternative occupation and so is transfer earnings. (d)No. The amount necessary to keep capital in a firm in one area is not the amount necessary to keep c apital in a similar industry in another area. Costs could be different. (e)Economic profits or losses are signals to owners of capital elsewhere in the economy that they too should enter the industry. If some firms are making losses, this is a signal to entrepreneurs to stay out of the industry. It also signals to existing firms to be cautious about re-investing. However, in the long run in a perfectly competitive market only normal profits can be earned and so no such signals are given. (f)They must be constant. Guideline answers (Monopoly) 1. Profit maximisation takes place where MC=MR but not where they intersect. The price is fixed on the demand curve and so price must be greater than MR. 2. It depends on the number and closeness of the substitutes. The more numerous and closer the substitutes, the greater the price elasticity of demand and vice versa. 3. No. In the UK, the former British Rail turned in poor figures for many years. If the ATC curve is everywhere above the demand curve, losses will result and so it will not be profitable to produce. 4. Firms must have some market power – it is a price maker. Firms must keep markets separate. The buyers in each market must have different elasticities of demand. 5. (a)The monopolist does not need to minimise costs to stay in business. Consequently it is productively inefficient and so wastes resources. b)It produces at a point where Price=MC. (c)A perfectly competitive firm produces at the lowest point of the AC curve and so is efficient. (d)Profit is shown by the rectangle sitting above the AC curve bounded by price and output. It is supernormal or economic profit. (e)No. It makes normal profit that is included in ATC. (f)Where MC=MR. (g)In the short run the supply curve of the firm is the MC curve above the point where Price=AVC. In monopoly there is no supply curve that is independent of demand. (h)The Monopolies and Mergers Commission investigates potential monopoly situations. It could force a monopoly to disband if they considered it to be against the public interest. The criterion is rather vague. (i)It could control prices or force it to work under a licence. Controlled prices would curb monopoly power of fixing too high a price and a limited quantity of production that would both exploit consumers. Again the government would not renew the licence unless the monopoly had performed within the given controls. Guideline answers (Imperfect competition) 1. Construct table from textbook. 2. It depends on the number of firms in the industry and on the strength of market power. 3. A price war can be very damaging for firms in an oligopolistic market. Instead they tend to restrict competition rather than attempt to drive main competitors out of the industry by reducing price. Advertising and branding is used to restrict competition. 4. At that output there is the greatest difference between total revenue and total cost and so profit is maximised. 5. Markets of perfect competition, monopoly and monopolistic competition are predictable because in them firms act independently. However, this is not so in an oligopolistic market. Firms are independent – one firm’s actions affect competitors. This leads to uncertainty. 6. Draw diagram, then list main differences: Perfect competitionMonopolistic competition Short runShort run Supernormal profits and lossesSupernormal profits and losses Demand curve slopingDemand curve horizontal Long runLong run Normal profitsNormal profits Produces at the lowest point Does not produce at the lowest of the AC curvepoint of the AC curve Price=MCPrice does not equal MC 7. Price leadership occurs often in an oligopolistic market. It could appear to be collusive because, after a dominant firm raises price, others soon follow. However it is not planned. The dominant firm is acting as a barometer for the rest of the industry that is experiencing the same pressures that caused the leader to alter price in the first place. The firms have not colluded. Guideline answers (Resource allocation) 1. Large corporations can manipulate by spending large sums on advertising and that allows them to sell what they produce rather than what consumers want to buy. Strong trade unions, through industrial action and lobbying, can often get restrictions on imports and subsidies for industries such as coal mining and agriculture. Demand is influenced and so resources are not allocated in the best way. 2. Public goods like defence and law and order are demanded collectively and not individually because they are non-excludable. Hence most people think that they should be paid for out of public taxation and be free to the consumer. However, merit goods like health and education are private goods that can be bought and sold in the market place. They are usually under-consumed when externalities are taken into account and so the argument is that the government should intervene because of the external benefits more consumption would bring to society. Hence the case for providing merit goods is not as strong as the case for providing public goods. . They would argue that it would lead to the misallocation of resources. If the good were free to consumers, they would consume up to the point where marginal utility is zero. Here the marginal cost of producing the last unit will be high and inefficiency will result. Consequently goods should not be provided free at the point of consumption. 4. B ecause social costs and social benefits must be added to private costs to represent true cost. 5. It occurs at the point where there is the greatest excess of total social benefit over total social cost, or where marginal social benefit is equal to marginal social cost. How to cite Monopoly, Perfect Competition, Imperfect Competition, Papers

Teenage Violence In Schools Essays - Behavior, Human Behavior, Crime

Teenage Violence in Schools Page #1 Teenage violence in schools has become a tremendous concern to many people. School violence over the past number of years has been increasing and family life, the things that occur in schools and the neighborhoods that the teenagers (that commit the crimes or violent acts) live in are some of the major factors. These are not necessarily the only causes to teenage violence. Family Lifestyle and the behavior of members within the family have been shown to have a direct affect on a teenager's behavior in school. A child can be influenced very easily by any older person, especially a family member, because he always looks up to that family member. If a person in the family is involved in a criminal activity then the children can be turned on by this and become interested in doing the same thing. If the guardian or parent of a teenager does not punish him for doing something wrong, this can only lead to repetition of the bad behavior. Failure to stop a child from doing something wrong could lead the child to believe that his behavior is acceptable. Also, a child thinks that the people that are supposed to love him don't even care that he is doing something bad so he will continue to do it. Teenagers also commit acts of violence to get their parents' attention. If parents ignore what their teenagers are doing, then the teenagers will continue to do more nega tive things just to get their parents to notice them. Another reason why family lifestyle is a cause to teen violence is, if the teenager is abandoned at a young age than there is no one to teach him wrong and right (Kim 82). Page #2 There are many different situations that can occur in school that can cause teenagers to do violent things. When a student has an argument with other students or a teacher that student may only know how to deal his anger by striking out. Often, teenagers do not know how to talk things out and instead, react violently. If a teenager doesn't like what someone (a faculty member or another student) has said to him, he might also let out his anger in violent ways. Sometimes, even if the other person has not done anything wrong to him, but rather to another person he can still get angry (school violence). The neighborhood that a teenager lives in can also cause him to be violent. If a teen lives in a bad neighborhood, where violent acts are going on all the time (besides for when he is in his house) and he will most probably be influenced by it (Kim 81). As a teenager sees more and more negative behavior happening daily in his surroundings, these behaviors will become acceptable and result in the teenager committing these same negative behaviors. Some of these negative behaviors include theft (lunch money, jewelry), vandalism, demands, threats, bullying, murder and rape (Kim 79). The following situations are examples of common behavior by teenagers; two boys did an act of vandalism in their school in New Jersey. The two boys vandalized their busses. The damage amount was $60,000, and the school had to close down for two days because there was no transportation. Another act of vandalism happened in Oregon