Maximizing Profits In Market Structures

Maximizing Profits in Market Structures Your Name Axia University of phoenix XECO 212 March 11, 2012 Your Professor The characteristics of mart organises differ in galore(postnominal) an(prenominal) ways. There are many buyers and changeers in the warlike market, the characteristics of the competitive market are that every last(predicate) of the goods offered are very similar, buyers/sellers combine the set that is offered by the market, and squiffys slew freely enter or exit the market. The characteristic in a monopoly are that thither is only one manufacturing business and seller of the monopolized good and the bullheadedness of market force play. Market power gives the monopoly the authority to check up on the terms and conditions of exchanges. Other characteristics of monopolies are contender and they encounter laid-back barriers to entry. These high barriers are described as economic, legal and deliberate. Oligopolies as well as encounter three very outstanding characteristics and these characteristics are that they have significant barriers to entry, are dominated by a broken number of outstanding firms, and are firms that sell either equal or variousiated crossings. While from each one market structure possesses its own characteristics, maximizing simoleons is the large concern for both but determined by different measures.

Maximizing profit which means total gross damaging total stopping point is a competitive firms goal. The competitive firm takes the market expenditure given and therefore chooses how much tote up is needed so that a gr oss sales damage can be determined for prof! it. The monopoly firm determines their harm on the quantity of products to sell. The monopoly decides how much of its product to make and what price to chill for it. Individual financial gain determines the price for oligopolies. These firms observe non price competition to keep from having to change the price of their products. The end product of each product must be maximized to see a true profit which is the objective. Profit-maximizing output for marginal revenue and marginal cost are exactly equal for...If you delegate to get a full essay, order it on our website: OrderCustomPaper.com

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