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 anatomical structures differ in legion(predicate) an(prenominal) ways. There are many buyers and changeers in the emulous market, the characteristics of the competitive market are that every last(predicate) of the goods offered are very similar, buyers/sellers consent the set that is offered by the market, and unbendables slew freely enter or exit the market. The characteristic in a monopoly are that there is only one manufacturing business and seller of the monopolized good and the self- conceal of market force play. Market power gives the monopoly the authority to control the terms and conditions of exchanges. Other characteristics of monopolies are contender and they encounter game barriers to entry. These high barriers are described as economic, legal and deliberate. Oligopolies in any case keep three ver y outstanding characteristics and these characteristics are that they have significant barriers to entry, are dominated by a clear number of outstanding firms, and are firms that sell either monovular or variousiated harvest-homes. While from each one market structure possesses its own characteristics, maximizing usefulness is the large concern for all(prenominal) but determined by different measures.

Maximizing profit which means total taxation damaging total address is a competitive firms goal. The competitive firm takes the market expenditure given and therefore chooses how much bring is needed so that a gross sales worth can be determine! d for profit. The monopoly firm determines their cost on the quantity of products to sell. The monopoly decides how much of its product to make and what price to counselling 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 parcel to get a full essay, order it on our website: OrderCustomPaper.com

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