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 structures differ in many an(prenominal) ways. There are many buyers and changeers in the competitive market, the characteristics of the competitive market are that every last(predicate) of the goods offered are very similar, buyers/sellers accept the set that is offered by the market, and firms slew freely enter or exit the market. The characteristic in a monopoly are that there is only one manufacturing business and seller of the monopolized good and the possession of market force play. Market power gives the monopoly the authority to control the terms and conditions of exchanges. Other characteristics of monopolies are contender and they encounter high barriers to entry. These high barriers are described as economic, legal and deliberate. Oligopolies also have three very outstanding characteristics and these characteristics are that they have significant barriers to entry, are dominated by a small number of outstanding firms, and are firms that sell either identical or variousiated products.
While from each one market structure possesses its own characteristics, maximizing profit is the large concern for all but determined by different measures.



Maximizing profit which means total revenue damaging total goal is a competitive firms goal. The competitive firm takes the market expenditure given and therefore chooses how much supply is needed so that a gross sales price can be determined for profit. The monopoly firm determines their price on the quantity of products to sell. The monopoly decides how much of its product to make and what price to charge 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 fate to get a full essay, order it on our website: Orderessay



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