Differentiating Between Market Structures Simulation

Differentiating among Market Structures Simulation University of Phoenix ECO/365: Principles of small scotchs November 9, 2009 In the University of Phoenix model (2003), Differentiating Between Market Structures, a berth is presented concerning embody and appraise income curves in the different commercialize structures by a freight rate transportation company. Throughout the mannequin scenarios atomic number 18 presented and decisions must be do to maximise profits or to besmirch losings (University of Phoenix, 2003). This radical will summarize and harbour of facts the advantages and limitations of supply and demand the simulation, analyzing how foodstuff structures maximize profits, identify the securities industry structure of a selected organization, and allow a table that compares and contrasts the meet characteristics of the four market structures. Advantages and Limitations of Supply and Demand All firms strive to triumph their objective of maximizing profits, to promote as much for itself as possible (Colander, 2008, p. 242). All firms heedless of the market structure in which they enmesh will maximize profits when marginal cost (MC) equals marginal tax income (MR).

Scenario One In the first scenario, East-Wests Consumer Goods Division operated in a utterly warlike market structure. A completedly competitive market is a market in which economic forces operate unimpeded (Colander, 2008, p. 238). The division had been recording losses for the past fewer years and was considering exiting that line of business. A decision was made to restrain operations and limit output to 6.75 one thousand thousand hundred pitch shipments at $55 per hundred burden shipment to minimize losses at $150.03 million. In a perfect arguing, umteen sellers exist and all sellers hold in the market footing (P) because no seller can encounter the market price. arrive at is maximized for each seller at the output where marginal revenue (MR) equals marginal cost (MC) (University of Phoenix, 2003). In a perfect tilt price equals marginal revenue for the sellers... If you want to get a full essay, order it on our website: Ordercustompaper.com

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