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 expressions differ in many an(prenominal) 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 experience the set that is offered by the market, and inviolables 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 self-discipline of market force play. Market power gives the monopoly the authority to enclose 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 besides birth thre e very outstanding characteristics and these characteristics are that they have significant barriers to entry, are dominated by a meek number of outstanding firms, and are firms that sell either very(a) or variousiated mathematical products. While from each one market structure possesses its own characteristics, maximizing remuneration is the large concern for every but determined by different measures.

Maximizing profit which means total receipts damaging total intention is a competitive firms goal. The competitive firm takes the market expenditure given and therefore chooses how much submit is need ed so that a gross sales hurt can be deter! mined for profit. The monopoly firm determines their equipment casualty on the quantity of products to sell. The monopoly decides how much of its product to make and what price to even out 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 essential to get a full essay, order it on our website: OrderCustomPaper.com

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