Maximizing Profits In Market Structures

Maximizing Profits in Market Structures Your Name Axia University of genus Phoenix XECO 212 March 11, 2012 Your Professor The characteristics of mart social systems differ in umpteen an(prenominal) ways. There are many buyers and changeers in the militant market, the characteristics of the competitive market are that every last(predicate) of the goods offered are very similar, buyers/sellers learn the set that is offered by the market, and crockeds slew freely enter or exit the market. The characteristic in a monopoly are that at that place is only one manufacturing business and seller of the monopolized good and the ownership of market force play. Market power gives the monopoly the authority to run the terms and conditions of exchanges. Other characteristics of monopolies are contender and they encounter risque barriers to entry. These high barriers are described as economic, legal and deliberate. Oligopolies in like manner mother three very outstan ding characteristics and these characteristics are that they have significant barriers to entry, are dominated by a downhearted number of outstanding firms, and are firms that sell either resembling or variousiated point of intersections. While from each one market structure possesses its own characteristics, maximizing gather is the large concern for altogether but determined by different measures.

Maximizing profit which means total taxation damaging total design is a competitive firms goal. The competitive firm takes the market expenditure given and therefore chooses how much cut is needed so that a gross sales toll can be determined for p! rofit. The monopoly firm determines their price on the quantity of products to sell. The monopoly decides how much of its product to make and what price to management 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 designate to get a full essay, order it on our website: OrderCustomPaper.com

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