Maximizing Profits in a Market Structure

Maximizing Profits in a Market bole structure Paper Crystal Stevens Axia College Carl Wertman XECO 212 July 8, 2012 The economy is very significant in our chance(a) lives and one important thing we should consider studying, is the principles and roles of the victuals grocerys, to be specific, the matched trades, monopolies, and oligopolies. The hawkish market is defined as a market with some(prenominal) buyers and rag byers trading identical products so that each and each make doer and buyer is a scathe taker. (Principle of Economics pg.290 Mankiw) In a militant each give awayer and buyer accepts a predetermined price for the particular good being presented. The postdate of a product is determined by how much the buyers ar willing to pay and how much the sellers are willing to sell the product to consumers for. For example if you went to the hired gun rate and cognize they had increase the fluff prices by 20 cents, that particular station woul d hold in a large drop in sales of gas scarce you could go to a polar store where the gas may be cheaper. Two major characteristics in a competitive market are that there are m whatever buyers and sellers in the market and the goods offered by the discordant sellers are more often than not the same.

Because of the way the competitive market works, the actions of any the buyers or sellers offer have a negligible impact on the market price. In a competitive market total tax income is proportionate to the make sense to the amount of product you have sold. This way that the market price is the same reg ardless of how much you sell, so if you happ! en to sell twice as much of a product as you normally would you have made unnecessary profit. Another important market structure is a monopoly; a monopoly is a slopped that is a sole seller of a good without any close substitutes. Unlike the example I used in the previous paragraph about competitive markets when a confederation has a monopoly, such as an galvanizing company they may raise their price for electricity but that does not stringent you can go someplace...If you want to get a lavish essay, order it on our website: OrderCustomPaper.com

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