Differentiating Between Market Structures Simulation

Differentiating Between Market Structures Simulation University of Phoenix ECO/365: Principles of Micro scotchs November 9, 2009 In the University of Phoenix simulation (2003), Differentiating Between Market Structures, a home is presented concerning cost and tax income curves in the different market structures by a freight transportation company. Throughout the simulation scenarios nuclear number 18 presented and decisions must be made to tap profits or to besmirch losses (University of Phoenix, 2003). This paper depart summarize and book of facts the advantages and limitations of supply and demand the simulation, analyzing how market structures maximise profits, identify the market structure of a selected organization, and include a table that compares and contrasts the conglomerate characteristics of the four market structures. Advantages and Limitations of Supply and postulate All firms strive to obtain their objective of maxim izing profits, to bring out as much for itself as possible (Colander, 2008, p. 242). All firms preoccupied of the market structure in which they operate will increase profits when marginal cost (MC) equals marginal taxation (MR).

Scenario i In the first scenario, East-Wests Consumer Goods Division operated in a suddenly competitive market structure. A completedly competitive market is a market in which economic forces operate unimpeded (Colander, 2008, p. 238). The division had been put down losses for the past fewer years and was considering exiting that line of business. A decision was made to rest rain operations and limit payoff to 6.75 mi! llion cytosine pitch shipments at $55 per hundred weight shipment to minimize losses at $150.03 million. In a perfect arguing, many sellers exist and all sellers say the market footing (P) because no seller can assure 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 competition 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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