Market Structure and Profits

This report will shed light on concepts such as Market Structures and Maximizing Profits. There are quadriceps different securities industry structures: everlasting(a) emulation, monopoly, monopolistic competition, and oligopoly. Throughout this paper, on that header will be in-depth discussion of transcriptional effectiveness and mart structure. In order for an validation to be effective, they must produce to increase gain within their market structures. I am handout to use market scenarios to explain and hopefully stand by to better give an understanding and aid in market visualization of the different criterias of the market. In the startle memorial tablet was go about with perfect competition. The organization lost significant profits due to increased competition from the previous year. The organization faced a dilemma, they wanted to decide if they should exsert to engage or shut down the business. The decision was made to continue operations in ef fort recover losings. However, in perfect competition profit maximizes where the equipment casualty (P)= marginal r raseue (MR)= marginal personify (MC). The favor with the decision lead to variable be origination recovered. In the second scenario, the organization had a regional monopoly. The wages of having a monopoly allowed the organization to increase the costs of their services.

The monopoly gave the organization the agent to increase profits significantly, however, raising the price in all case high can result in losses even if there is a monopoly. It is nice to have the advantage of being a monopoly since th e seller can bushel determine and the des! cend of output. In this case, in order to increase output, prices should be set lower to lure in the customers of the company. However, lowering the price and increase output, only increased the revenue and since the objective was to maximize the profit, I should have increased the price and reduced the output, and past I would have seen a rise in the profit. In the three scenario, the organization faced a duopoly (a type...If you want to lower a full essay, order it on our website: OrderCustomPaper.com

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