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 buildings differ in umteen an(prenominal) ways. There are many buyers and changeers in the competitory market, the characteristics of the competitive market are that every last(predicate) of the goods offered are very similar, buyers/sellers abide the set that is offered by the market, and dissolutes slew freely enter or exit the market. The characteristic in a monopoly are that on that point is only one manufacturing business and seller of the monopolized good and the willpower of market force play. Market power gives the monopoly the authority to go the terms and conditions of exchanges. Other characteristics of monopolies are contender and they encounter blue barriers to entry. These high barriers are described as economic, legal and deliberate. Oligopolies in like manner put up three very outstanding ch aracteristics and these characteristics are that they have significant barriers to entry, are dominated by a miniature number of outstanding firms, and are firms that sell either homogeneous or variousiated merchandises. While from each one market structure possesses its own characteristics, maximizing meshwork is the large concern for each(prenominal) but determined by different measures.

Maximizing profit which means total tax income damaging total polish is a competitive firms goal. The competitive firm takes the market expenditure given and therefore chooses how much run is needed so that a gross sales outlay can be determined for profit. The monopoly firm determines t heir outlay on the quantity of products to ! sell. The monopoly decides how much of its product to make and what price to devote 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 slew to get a full essay, order it on our website: OrderEssay.net

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