Features of Perfect Competition

Features of Perfect Competition Contrast the features of perfect competition with those of oligopoly. (10) The comparison between perfect competition and oligopoly will be based on the following: number of buyers and sellers, nature of product, and barriers to entry of firms. Number of buyers and sellers Perfect competition is a market structure that is characterised by many buyers and sellers with each firms output representing an insignificant proportion of the total output. Hence, sellers cannot influence prices by changing its level of output. Thus, they accept the market price as given i.e they are price takers. Each firm then faces a perfectly elastic demand curve as shown in fig 1a. An example of a market that comes close to the perfectly competitive model is that of agricultural farming. How much the farmer sells his wheat for will depend on the prevailing price of wheat in the market. On the other hand, an oligopolistic firm produces a significant amount of the total market output. The seller can either influence the price or output. It can sell more by lowering price or increase price but sell less. This indicates that the firms demand curve is downward sloping. In addition, due to the small number of firms prevalent in the market, each firm now makes its decisions based on the reaction of other firms in the same industry. No firm can afford to ignore the actions and reactions of other firms in the industry. For example, there are only a few car manufacturers in the US such as Chrysler, GM and Ford Motors. If Ford Motors wants to increase sales, it can lower the price of its cars so that some buyers will switch from either Chrysler or General Motors but the increase in quantity demanded will be insignificant given that Chrysler and General Motors will follow the cut in price. This behaviour can be summarized by the kinked demand curve. Nature of product In perfect competition, each seller produces an identical product, thus they are perfect substitutes for each other. Since consumers think that the products are the same, they will not show any preference towards the goods of one firm over another. This means that sellers are not able to arbitrarily raise their prices for fear that consumers switch to other firms. Firms in perfect competition are price takers, and the demand for their goods are perfectly price elastic, hence the horizontal demand curve. In oligopoly, firms may either be producing a homogenous product or a differentiated product. When the product is differentiated, the oligopolist can increase the price and the output would not fall significantly. This implies substantial market power for the firms in an oligopoly. Even when the good is homogenous like steel or aluminium, the firm is likely to differentiate in terms of the services and terms of conditions, hence the downward sloping demand curve. Barriers to entry There are no barriers to entry or exit in a PC industry so the markets will consist of a large number of small sellers. The implication of this is that the firms in perfectly competitive industry will earn normal profits in the long run as supernormal profit earned by the firms in the short run will be depleted by the entry of the new firms into the industry. It is relatively easy to lease a plot of land to grow wheat and in the event that the farmer chose to give up wheat farming, he could easily terminate his lease with the landlord. The start up cost is low as all he needs are some simple tools and seedlings. In oligopoly, there are significant entry and exit barriers. For example, in car production, there are very high initial fixed costs such as the setting up of the assembly line and only if the firm produces a very large output level will the average cost fall significantly. The lower cost associated with a big output serves as an entry barrier for new firms as their initial d emand is usually low. Exit is also difficult, as it is not easy to dispose of the firms fixed assets. Other forms of barriers could be patent rights, exclusive ownership of certain raw materials and legal barriers. So the oligopolist can earn supernormal profits even in the long run. 2b. Discuss why oligopoly is a more common type of market structure compared to perfect competition. (15) Perfect competition is an ideal model and so it is difficult to find markets that have all these characteristics. There are some markets in the real world that approximates perfect competition. Examples of such markets are farming, the stock exchange market and the foreign currency market. These markets possess some of the characteristics of PC as explained in part (a). However, even in such markets, some of the characteristics are hard to fulfil. For instance, buyers and sellers may not be price takers. In the stock exchange market, there are some individuals or institutions that can influence the price of shares through their large holdings of a particular companys shares. The product is also not homogenous if stock of different companies are considered., Thus, if they were to sell their shares, price will fall. Knowledge is not perfect either. Although buyers and sellers do have easy access to information through their brokers and the Internet, there are some who do have insider i nformation and use that to their advantage. Moreover, managers tend to reveal more information about their companies to financial specialists rather than to small investors. In the real world, most industries do not have that many firms. In fact, in industries such as automobiles, air-craft manufacturing industry, oil industry, steel industry, supermarket chains and pharmaceutical industry, the industry is dominated by a few large firms. Most firms would rather face less competition so that their market power can be consolidated and secured. Oligopoly is thus a more desired form of market structure as far as sellers are concerned. Oligopoly is a more common market structure. It can be attributed mainly to the high entry barriers. Barriers to entry refer to any impediments that prevent new firms from competing on an equal basis with existing firms in an industry. An effective barrier for new firms to enter the industry is substantial economies of scale. The production of some goods involves very high initial fixed costs. Good examples are the petroleum industry and the manufacturing of aircrafts. For example, Airbus and Boeing must construct huge expensive structures to build the A380. Thus, for the production of such goods, the larger the output the greater is the economies of scale enjoyed by the firm. Such industries have very large Minimum Efficient Scale, and hence, only a few firms exist in such industries. Economies of scale are not the only source of barrier to entry. Other barriers to entry can be the possession of superior technical knowledge or sterling reputation for quality or efficiency. Take for example, high end sports cars like the Ferrari is such well known brand names that it is quite impossible for any new auto firms to replicate them. For years, they are the symbol of quality and luxury, an image that the carmakers have painstakingly cultivated. Production of such cars also requires superior technical knowledge, which is jealously guarded by the manufacturers. Thus it is not easy for new firms to enter such industries. In addition, existing firms could have spent millions on advertising to build and maintain brand loyalty. It will require a substantial period of high advertising costs and low revenues for new entrants if they want to establish themselves. Also, they can spend large amounts on advertising to make it difficult for a new entrant to differentiate its product. With the high entry barriers, firms are able to earn supernormal profits in the long run and have the financial strength to block the entry of new firms. Such firms can also adopt predatory pricing to further keep out competitors. Their huge profits allow them to cut prices drastically to drive out competitors. They can maintain excess production capacity as a signal to a potential entrant that with little notice, they could easily saturate the market and leave the new entrant with little or no revenue. Besides, huge profits allow firms to spend generously on RD. The discovery of new and better products allows them to compete more effectively in the market and also keep out other firms. For instance, in the pharmaceutical industry, millions of dollars are required to discover a new vaccine or a new drug. Hence the presence of high entry barriers results in many oligopolies. Globalisation and liberalization With increased globalisation, many domestic firms are threatened by the entry of big foreign firms or MNCs. Bigger firms have a competitive advantage in terms of pricing. Domestic firms can survive as long as there is government legislation to prevent the entry of foreign firms. But most governments are liberalizing their domestic industries. In order to compete with foreign firms, domestic firms have to merge. A merger would safeguard their survival as well as to allow them to compete more effectively. For instance, the merger of DBS bank with POSB and UOB with OUB , are all meant to expand the size of each bank so as to better compete with other international banks such as Citibank and Standard Chartered etc when MAS liberalize the financial sector to encourage competition. Hence globalisation has increased the tendency for mergers and the formation of oligopolies. Conclusion There are not many industries in the real world that satisfy the characteristics of the perfectly competitive model given it is an ideal model. On the other hand, the characteristics of an oligopoly are more easily met. The nature of production is more favourable to an oligopolistic kind of market. There are many advantages to being big. Some firms are big due to high entry barriers natural or man-made, while others expand internally or externally through mergers and acquisition in response to a changing external environment. The main reason for oligopoly being a common market structure can be attributed to benefits of economies of scale which gives firms the incentive to merge and be large. It will lower their costs and give them higher returns to meet potential competition and as a consequence, they have huge incentives to erect barriers to deter entry by new firms, and to consolidate their position.

Bell LaPadula

In recent years, the Bell-LaPadula model has been employed more and more in scientific Since publication, the Bell-LaPadula model has helped in the advancement of science and technology by providing a mathematical basis for the examination of laboratory security. Moreover, this model is a major component of having a disciplined approach to building secure and effective laboratory systems.The Bell-LaPadula model can also be used to abstractly describe the computer security system in the laboratory, without regard to the system's application.The goal of modern security research is to facilitate the construction of multilevel secure systems, which can protect information of differing classification from users that have varying levels of clearance. There are some deficiencies inherent in the Bell and LaPadula model, and there have been efforts to develop a new approach to defining laboratory security models, on the basis that security models should be derived from specific applications. Project Aims and Objectives:The objective of this research is to ascertain the ways in which the bell-lapadula model can be applied to Laboratory Information Management Systems. Laboratory automation occurs when the application of technology is used to reduce the need for human intervention in the laboratory. This makes it possible for scientists to explore data rates that otherwise may be too fast or too slow for proper scientific examination. Moreover, the research was also aimed to investigate the possible practical applications of the Bell-Lapadula model in library information management systems (LIMS).The main intention of this modern security research is to facilitate the construction of multilevel security systems, which can protect information of differing classification from users that have varying levels of clearance. Since publication, the Bell-LaPadula model has helped in the advancement of science and technology by providing a mathematical basis for the examination of l aboratory security. Moreover, this model has been major component of having a disciplined approach to the building of effective and secure laboratory systems.Project Outline: Literature Survey: The use of the Bell and LaPadula Model has been successful in modeling information that is relevant to security, even though this success might be responsible for the vagueness of the model about its primitives. This vagueness can also be examined with respect to the theory that the Bell and LaPadula Model and Noninterference are equivalent. Laboratory automation makes it possible for scientists to explore data rates that otherwise may be too fast or too slow to properly examine.Therefore, an automated laboratory reduces the need for human intervention and creates a more efficient environment in which human beings and technology can interact to produce a great deal more information and accurate data that was not possible prior to automation. Its approach is to define a set of system constrain ts whose enforcement will prevent any application program executed on the system from compromising system security.The model includes subjects, which represent active entities in a system (such as active processes), and objects, which represent passive entities (such as files and inactive processes). Both subjects and objects have security levels, and the constraints on the system take the form of axioms that control the kinds of access subjects may have to objects. (http://chacs. nrl. navy. mil/publications/CHACS/2001/2001landwehr-ACSAC. pdf)While the complete formal statement of the Bell-LaPadula model is quite complex, the model can be briefly summarized by these two axioms stated below: (a) The simple security rule, which states that a subject cannot read information for which it is not cleared (i. e. no read up) (b) The property that states that a subject cannot move information from an object with a higher security classification to an object with a lower classification (i. e. no write down). (http://chacs. nrl. navy. mil/publications/CHACS/2001/2001landwehr-ACSAC. pdf)These axioms are meant to be implemented by restriction of access rights that users or processes can have to certain objects like devices and files. The concept of trusted subjects is a less frequently described part of the Bell-LaPadula model. Systems that enforce the axioms of the original Bell-LaPadula model very strictly are often impractical, because in a real system, a user might need to invoke operations that would require subjects to violate the property, even though they do not go against our basic intuitive concept of laboratory security.For instance, there might be need in the laboratory to extract an UNCLASSIFIED paragraph from a CONFIDENTIAL document for use in a document that is UNCLASSIFIED. A system that strictly enforces the properties of the original Bell-LaPadula model might prohibit this kind of operation. As a result, a class of trusted subjects has had to be included in the Bell-LaPadula model, and is trusted not to violate security, although they might violate the property.Laboratory systems that are based on this less restrictive model usually have mechanisms that permit some of the operations that the property would normally not allow. It should also be noted that a number of projects have used the Bell-LaPadula model for description of their security requirements, although strict enforcement of the Bell-LaPadula axioms without the implementation of trusted subjects turns out to be overly restrictive in these projects. Thus, there has been widespread introduction of these trusted processes to implement the concept of trusted subjects.There are also some limitations involved in the use of the Bell-LaPadula model, including an absence of policies for changing user access rights. With this model, there can be secure and complete general downgrade, and is it is intended for systems that have static security levels. The Bell-Lapadula model would b e a suitable idea for Laboratory Information Management Systems because the model focuses on data confidentiality and access to classified information, in contrast to some other models that describe rules for data protection and integrity.Clear and concise access rules for clinical information systems spells out by this model. Furthermore, it reflects current best clinical practice, and it’s informed by the actual threats to privacy, its objective is to the maximum number of records accessed by any user, and at the same time the number of users who can access any record and this has to do with controlling information flows across rather than down and at the same time a strong notification property should be enforced.I will also discuss its relationship with other existing security policy models available, and the possibility of its usage in other applications where information exposure must be localized, which ranges from private banking to the management of intelligence data , and much more. Another area in which laboratories could benefit by using the Bell-Lapadula model is the multi million dollar drug industry, which requires a high level of security and confidentiality since drug research sensitive, and results or findings in an ongoing research may sometimes need to be kept from unauthorized persons.Description of the Deliverables: This research will be conducted by investigating the possible practical applications of the Bell-Lapadula model. This would be conducted and tested physically and objectively. A prototype will be built in order for it to be properly tested, since it is practical. The testing stage will involve programming codes for different levels of security and the objective is to find out if security can be breached at any stage. Evaluation Criteria Evaluation of the involve the Resource Plan:The equipment, software, and other materials necessary to complete the project, how they are to be provided, and what the financial costs will be, such as travel. Project Plan and Timing: Anticipated milestones and interim deliverables. A detailed timetable (schedule) of the stages, including the estimated finishing date, is a must. Stages will be reviewed with the sponsor and Dissertation Advisor. Don’t simply list the stages of the project and their timetables, but supply information what is done in each of them with special emphasis on the last stage of the project.Risk Assessment: A description of what obstacles may arise and contingency plans to meet them. One aspect that should be considered here is the availability of the software and hardware you intend to use and, if you need to interface several pieces of software, whether this is known to be possible. Quality Assurance: How progress on your project will be monitored and how success at each stage will be assessed. This may include, but should not be limited to, the formal project assessments.

McBride Financial Services

McBride Financial Services is a premier one-stop mortgage provider in the five-state area of Idaho, Montana, Wyoming, North Dakota, and South Dakota. The company specializes in providing low-cost, flat-rate fee mortgages to members of its communities shipping for a new residential mortgage. The company is currently privately held but is exploring opportunities to go public through an Initial Public Offering (IPO), acquiring another company in its same industry or merging with another organization.Through utilization of the SWOT method, management will evaluate each approach and determine which is the best method to take McBride Financial Services public. Strengths in Going Public If McBride Financial Services chose the option of going public with an IPO there are a couple of strengths that it would benefit from. The first distinct strength is the raising of capital. Additional capital would allow for brick and mortar expansion, investment opportunities, and added cash flow to improve products and services. An IPO can help reduce debt and the applicable risk rating given by creditors.If the IPO is successful, the options for additional financing will be open. By utilizing the option of an IPO, an organization’s awareness within the community arises. Most companies gain profits when establishing an IPO. Consumers become aware on a local and even a national level of what your organization produces. They will take a risk if currently unhappy with their current financial services and experiment with your products and services. If the customer relationship is cemented from the beginning, the consumer is sure to now produce additional clientele via word-of-mouth.All of this additional business is generated by creating and offering an IPO. If McBride’s chose to acquire another organization within the same industry, it has several advantages it could benefit from. One advantage from the start is that the open locations could potentially be in lucrative loc ations that would create a stronger voice and curb appeal. Financing options become available as well. The current financier used by McBride, will be ready and willing to offer other financing options if needed because of additional income that is now a potential.The potential for additional consumers and vendor relationships is tremendous depending on the size of the organization acquired. It can be beneficial for McBride, as some of those vendor contracts may be more cost effective in the future. Within the same notion of cost effectiveness, the additional staff that is acquired with the new organization brings experience and dependability. It allows the two organizations that are now one to continue to run smoothly and not have higher costs of training and development.There are two major advantages to merging with another organization if that is the choice McBride’s Financial Services commits to. The first advantage is that once the merger is completed, competition within the industry community becomes less of a threat. The other advantage to a merger is the strategic planning and restructuring of the organization. Usually the two organizations will coercively plan and stage a strong management lead to run the larger institution. Weaknesses in Going Public Conducting an IPO is time-consuming and expensive.It can take up to a year or more to complete and can cost several hundreds of thousands of dollars for attorneys, accountants, printers, and additional fees. The SEC disclosure rules are very extensive and mean all financial information is made public. McBride will be subject to review by the SEC to ensure compliance with regulations through proper filings and relevant disclosures. Decision-making among management may be affected by the market price of the shares and the feeling they must receive market recognition for the company’s stock. McBride could lose market confidence should shares of the company’s stock fall.Decreased valuatio n of the company can affect lines of credit, secondary offering pricing, the company’s ability to maintain employees, and the personal wealth of insiders and investors. â€Å"’In today’s global business environment, companies may have to grow to survive, and one of the best ways to grow is by merging with another company or acquiring other companies,’† according to consultant Jacalyn Sherriton. In principle, a merger or acquisition is a capital budgeting decision much like any other. However, much like an IPO, mergers have their weaknesses as well.The value of a merger may depend on such things as strategic fits which can be difficult to measure. The accounting, tax, and legal aspects can be complex. Mergers often involve issues of corporate control and are a means of replacing existing management. Mergers affect the value of a firm and further affect the relative value of the stocks and bonds. Finally, mergers are often unfriendly. Although many c ompanies have found acquisitions to be highly beneficial to their operations, many more encounter problems that can prove disastrous to the future position of the firm.A poorly executed acquisition can harm McBride’s financial and strategic situation. Problems with financing an acquisition can arise before and after the transaction. Expenses for acquisitions can be astronomical when they involve lawyers, consultants, financiers, and advisors that helped make the deal possible. Additionally, filing and legal fees because of complications in the transaction can further exacerbate the already extremely high costs of acquisition. Oftentimes, quality employees are lost in an acquisition because the acquiring firm is too caught up in transaction to recognize they exist within the acquired firm.The long-term strategies of a firm can be negatively affected if it is pursuing a diversification strategy. Rather than improving upon the factors that led to its competitive advantage, manag ement focuses on running a diversified company, which could result in the company losing its core business advantage and severely hampering the future success of the firm. Opportunities in Going Public Major companies and corporations that comprise a big part of the United States economy take advantage of certain opportunities such as going public through IPO’s, acquisitions, and mergers.These three approaches provide an additional resource and many times an advantage to expand, become more profitable, or simply save a company’s existence. McBride Financial Services, for instance, can raise capital by doing an IPO. This gives the company an opportunity to expand its business by becoming a part of the stock market and hence becoming well-known. This also provides enough funds to be put back into the company for profit, and for any other expenses necessary to remain successful and in existence.In the case of an acquisition, which is the taking over of another company, Mc Bride will benefit because the company being acquired is already established. It takes less investment, time, and energy than to start-up a new company. A merger also can be a beneficial opportunity for the company because both parties agree to come together as one organization to improve and grow stronger than as individual companies. A merger eliminates part of the competition, creates a bigger and stronger company, and strengthens the balance sheet.Without methods such as IPO’s, acquisitions, and mergers, â€Å"†¦a company may simply become financially non-viable [and] not able to meet its debt and trade obligations† (Collier, p. 5). Threats in Going Public With the opportunities that McBride Financial Services has with these three options of expansion, there exist certain threats as well. If McBride chooses to go public through an IPO, then it has to worry about the new owners of the company and their ideas about what the company is and should be doing. In a w orst case scenario, Mcbride’s competitors can buy the company and decide to do with it what they want.They can take full control of the company and manipulate it in ways McBride never imagined or they could even just dissolve the company into nonexistence. If McBride needs the money to expand that it would get if it went through with the IPO, then acquiring another organization in the same industry is indeed going to be difficult to do, if not impossible. Even if McBride does find a way to get the money to acquire another company without going public, then it would most likely go into eventual bankruptcy because of the debt it will accumulate because of increased costs.If McBride wants to merge with another organization to expand, it will not be an easy task because the two become one company with a common purpose. If they do not learn how to work with each other and compensate for the other’s weaknesses, then they will eventually fail and both companies will be out of business. Conclusion Based on the information provided while researching each of the approaches for going public, the management team at McBride Financial Services has opted to go public via an IPO.Although it can be costly and time-consuming, it seems to be the best method to maintain the current managerial make-up and integrity of the organization. References (n. d. ) Merger and acquisitions. Retrieved on November 2, 2010 from http://www. answers. com/topic/mergers-and-acquisitions Collier, Steve. Mergers and acquisitions: Special dangers and opportunities. Retrieved November 4, 2010, from EBSCOhost database. Keown, A. J. , Martin, J. D. , Petty, W. , & Scott, D. F. (2005). Financial Management: Principles and Applications.Pearson Education, Inc. Steffens, Gregory (n. d. ). Common problems with acquisitions. Retrieved on November 2, 2010 From http://www. gaebler. com/common-problems-with-acquisitions Taubman, L. E. (n. d). Considerations of an IPO. Retrieved on November 2, 20 10 from http://library. findlaw. com/2001/Jan/1/127967. html Chapter 22 Problems 1. What new problems and factors are encountered in international as opposed to domestic financial management? * Foreign Currency Exchange Fluctuation: International financial management involves cash flow in foreign currency.Foreign currency exchange rate keeps fluctuating. International business is exposed to foreign currency exchange risk as fluctuation in wrong direction affects the business adversely. There are many ways to hedge the cash flow in foreign currency, but no strategy provides complete protection. * Fund flow between countries – International financial management deals with capital flow between countries. In many countries banking system is not mature and /or fund raising is not easy. In that case, company has to raise fund outside the country.International financial management involves the fund flow from one country to other country. * Laws and regulations – Different cou ntries have different business laws, labor laws, laws related to taxation etc. International financial management is affected by the prevailing laws and regulations in a particular country. * Country risk – International business is exposed to the country risk of the country company is doing business in. Country risk involves political risk, general economic environment etc.Because of country risk, additional risk premium is required. International financial management deals with this issue as well. 2. What does the term arbitrage profit mean? Arbitrage profit refers to making risk free profit without investing your own money. The opportunity of arbitrage profit arises because of pricing mismatch. In the simplest form, if the same financial instrument is selling at different price at two different places, one can buy the security where it is selling at the lower price and sell where it is selling at the higher price.This gives the seller a risk free profit without using his m oney. Another example of arbitrage profit is Triangular arbitrage. It is the process of trading out of the first currency into a second currency, then trading it for a third currency, which is in turn traded for first currency. Arbitrage profit can be earned from trading from the second to the third currency if their direct quotes are not consistent with the cross exchange rates. 3. What can a firm do to reduce exchange risk? The firm can hedge against foreign exchange risk in a number of ways.First, they can deposit funds into the foreign country's banks in the foreign denomination in a sufficient quantity so as to hedge against a downturn in the domestic currency. There are some opportunity costs associated with this method as the interest rate earned on the deposited funds will be less than could be earned elsewhere, but the difference is like carrying insurance. In addition, the firm could enter into forwards, futures, or options. 4. What are the differences between a forward co ntract, a futures contract, and options?A forward contract is one that locks in an exchange rate now for a transaction in the future. It is possible the economy will render the forward more expensive than actual exchange rates would have made the transaction to begin with, but again, the forward acts like an insurance policy against negative shifts on exchange rates. Futures contracts are similar to forward contracts except that forward contracts are private agreements and may be molded accordingly. Futures are traded on open markets and, as such, are held to higher levels of scrutiny.Forward contracts can only be executed on one specific date. Futures (because they are traded) are open for transaction any day until their expiration. Options set an exchange rate and, as the name implies, gives the firm the option of exercising the rate at the time the contract is due. This gives the firm flexibility and allows them to take advantage of unforeseen upticks in the global economy that a ctually make exchange rates favorable at contract execution time. Options are more expensive, however (the flexibility afforded by options costs a premium).

The Effects Of Benzodiazepines And Its Effects On The Cell...

Xanax is a benzodiazepine that is most often used to treat anxiety. The effects of benzodiazepines mainly come from their ability to alter the movement of the inhibitory transmitter known as GABAa. GABA is triggered to release when it then can bind to the GABAa receptor. The binding of the two causes the ion channel to open and chloride ions are sent across the cell membrane. This causes the inhibitory factor by depolarizing the membrane (Griffin et al., 2013). Benzodiazepines are absorbed well through both per oral and parenteral administrations. However, absorption per orally is more rapid than any other route. Xanax in particular, is highly lipid soluble. Because it is highly lipid soluble, it means that it passes through the blood brain barrier more quickly. Xanax, otherwise known as alprazolam, reaches its peak in concentration in about one to two hours after administration (Griffin et al., 2013). The half-life, or the time it takes the drug to decrease by half, is about six to twenty-seven hours for adults (Griffin et al., 2013). There is a redistribution of benzodiazepines in body fat. This is a two phase process. During the first phase, there is a fast drop in the blood level as the drug is being redistributed throughout the body. During the second phase the blood level is more slow to drop than the first phase because the drug that is left in the blood is being metabolized and as that is happening it is being replaced by the drug t hat is being released from the bodyShow MoreRelatedDrugs and Society Essay925 Words   |  4 Pages1c. Describe the life cycle of a typical neurotransmitter. A cell membrane with the uptake of a particular precursor absorbs amino acids to create a neurotransmitter. The amino acids undergo synthesis with a reaction with enzymes to become a neurotransmitter. 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