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 situation 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 tap profits or to besmirch losses (University of Phoenix, 2003). This paper pull up s prosecutes summarize and book of facts the advantages and limitations of supply and demand the simulation, analyzing how market structures maximise 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 get All firms strive to obtain their objec tive of maximizing profits, to mature as much for itself as possible (Colander, 2008, p. 242). All firms abstracted of the market structure in which they operate will maximise profits when marginal cost (MC) equals marginal tax income (MR). Scenario whiz In the first scenario, East-Wests Consumer Goods Division operated in a dead competitive market structure. A completedly competitive market is a market in which economic forces operate unimpeded (Colander, 2008, p. 238). The division had been recording losses for the past fewer years and was considering exiting that line of business. A decision was made to restrain operations and limit yield to 6.75 million cardinal 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 take the market footing (P) because no seller can checker the market price. arrive at is maximized for each seller at the output where marginal revenu e (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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