“THE JAMAICA PUBLIC SERVICE LTD”
THROUGHOUT THE YEAR 2011
Centre #: 100016
Candidate #: 1000161860
An Investigation into the impact of the
monopoly “Jamaica Public Service” on
Jamaica throughout the year 2011.
TABLE OF CONTENTS
AIMS AND OBJECTIVES(ii)
DATA COLLECTION AND ANALYSIS1
This project would not be made possible without the help of certain individuals and I would like to express my appreciation here. Thanks to Ms. Morris for explaining the requirements of the report to me and giving me a better understanding of how to approach it when she marked my first draft; my parents and siblings for providing me with the necessary tools and means of attaining my data; and God for sparing my life to complete this project.
AIMS & OBJECTIVES
The aim of this study is to investigate how the monopoly (JPS) has impacted Jamaica, economically and socially, throughout the year 2011. The objectives of this study will include:
* To define the economic term ‘Monopoly’ and to identify its features * To identify how and why this firm is a monopolist in the country * To recognize the major issues and concerns with this market * To identify how these issues affect the economy and society * To state what the firm has been doing and recommend what more can be done to solve these issues
To satisfy the aims and objectives earlier stated, these are the primary sources of data in which statistics and raw data were analyzed and stated in the report: -informative and opinionative articles obtained via internet from print media sources such as the Jamaica Information Service, Jamaica Observer and the Jamaica Gleaner - Company history and other company-related data published on their website -Government of Jamaica legislative Acts pertaining to the supply of energy in Jamaica - informative and opinionative articles obtained via internet from the website of the Office of Utility Regulation of Jamaica (OUR) These sources, after in-depth observations, yielded relevant and useful information which was then extracted and used in the report to arrive at conclusions and make recommendations. Secondary sources of data included the websites ‘Investopedia’, ‘eHow’ and ‘Wikipedia’ where various definitions and other supportive findings were obtained.
WHAT IS A MONOPOLY?
According to the online encyclopedia ‘Britannica’, a monopoly implies exclusive control of a market by a supplier of a product or a service for which there is no substitute. What makes this market structure different from the others is that: 1. There are many buyers within the market, but only one vendor 2. There are significant barriers to entry and exit to and from the market 3. The good produced is unique and homogeneous
4. The monopolist is a price maker, meaning that it determines the market price(s) of the good. A monopoly can be created by several factors: by law, mergers or take-over's, or by ownership of scarce resources used to produce this commodity. Usually, there are barriers and difficulties to enter this industry and a firm may dominate for a very long time. Also because of the lack of competition, these firms tend to make substantial profits both in the short and long run.
There is a popular stigma in regards to monopolistic firms, that since they are the sole provider of that particular good and there are no close substitutes to that good, they exploit and manipulate their customers with unfair prices and unfulfilled promises. However, monopolies have also helped in the growth of economies by utilizing the national resources...