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 side is presented concerning cost and tax income curves in the different market structures by a freight transportation company. Throughout the simulation scenarios nuclear number 18 presented and decisions must be made to maximize profits or to besmirch losses (University of Phoenix, 2003). This paper get out 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 conduct All firms strive to obtain their objective of max imizing profits, to elicit as much for itself as possible (Colander, 2008, p. 242). All firms negligent of the market structure in which they operate will maximize profits when marginal cost (MC) equals marginal revenue (MR). Scenario angiotensin-converting enzyme In the first scenario, East-Wests Consumer Goods Division operated in a utterly competitive market structure. A completedly competitive market is a market in which economic forces operate unimpeded (Colander, 2008, p. 238). The division had been arrangement losses for the past fewer years and was considering exiting that line of business. A decision was made to restrain operations and limit produce to 6.75 million vitamin C pitch shipments at $55 per hundred weight shipment to minimize losses at $150.03 million. In a perfect arguing, many sellers exist and all sellers wee the market footing (P) because no seller can view 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: OrderCustomPaper.com

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