Market Structure and Profits

This report will shed light on concepts much(prenominal) as Market Structures and Maximizing Profits. There are quadruple different securities industry structures: everlasting(a) contention, monopoly, monopolistic competition, and oligopoly. Throughout this paper, on that blossom will be in-depth discussion of transcriptional effectiveness and trade structure. In order for an validation to be effective, they must produce to increase boodle within their market structures. I am way out to use market scenarios to explain and hopefully wait on to better give an understanding and aid in market visualization of the different criterias of the market. In the startle governance was face up 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 operati ons in effort recover losses. However, in perfect competition profit increases where the price (P)= marginal r raseue (MR)= marginal comprise (MC). The service with the decision lead to variable be innovation recovered. In the second scenario, the organization had a regional monopoly. The emolument of having a monopoly allowed the organization to increase the costs of their services.

The monopoly gave the organization the federal agency to increase profits significantly, however, raising the price in whatever case high can result in losses even if there is a monopoly. It is nice to have the advantage of b eing a monopoly since the seller can bushel! determine and the descend 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 hence I would have seen a rise in the profit. In the three scenario, the organization faced a duopoly (a type...If you want to jerk off a full essay, order it on our website: BestEssayCheap.com

If you want to get a full essay, visit our page: cheap essay