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 office staff is presented concerning cost and tax income curves in the different market structures by a freight transportation company. Throughout the simulation scenarios atomic number 18 presented and decisions must be made to maximise profits or to besmirch losses (University of Phoenix, 2003). This paper leave alone summarize and book of facts the advantages and limitations of supply and demand the simulation, analyzing how market structures maximize 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 carry All firms strive to obtain their objec tive of maximizing profits, to parent as much for itself as possible (Colander, 2008, p. 242). All firms oblivious of the market structure in which they operate will maximize profits when marginal cost (MC) equals marginal revenue (MR).

Scenario hotshot In the first scenario, East-Wests Consumer Goods Division operated in a absolutely competitive market structure. A completedly competitive market is a market in which economic forces operate unimpeded (Colander, 2008, p. 238). The division had been preserve losses for the past fewer years and was considering exiting that line of business. A decision was made to restrain operations and limit end product to 6.75 million snow pitch shipments at $55 per hundred weight sh! ipment to minimize losses at $150.03 million. In a perfect arguing, many sellers exist and all sellers stop the market footing (P) because no seller can soften 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: OrderEssay.net

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