Differentiating Between Market Structures

?The primary debate among economists is not more or less using marts and about how grocerys are structured? (Colander, 2008). The structure of a grocery is comprised by the number of organizations in say market, the barriers to entry to said market, and the mutuality among organizations in how they achieve their goals of maximizing profits. By analyzing the differences of the market structures in the ECON365 week four simulation, the effectiveness of BP?s market structure, and how the organizations in each market structure maximize profits, the referee should be able to grasp a firm apprehension on the differences in the midst of the four market structures?perfect competition, a monopoly, monopolistic competition, and an oligopoly. Supply and learn in SimulationThe Supply and occupy simulation uses the fictional East-West Transportation Company to ?describe the differences mingled with market structures a freight transportation industry faces in various markets?(Universi ty of Phoenix, 2008). The East-West Transportation Company is divided into four divisions; Consumer Goods, Coal, Chemicals, and shade Products. First ScenarioIn the first scenario the user must decide whether or not the Consumer Goods cleavage should shut down or repay operations because of lost profits to monopolistic competition. Choosing to continue operations and lowering the number of hundred weight shipments per million to 6.75 resulted in a minimized lost profit of$150.03 million, which is the point where MR=MC.

This scenario identifies with a perfectly competitive market. Second ScenarioThe second scenario begi ns with announcing the Coal member?s monopo! ly in the region after its only rivalry pulled out. The scenario asks the user to set the price and output of coal. The maximized profit have sex for coal was at $7.85 million per short ton. This is also where MR=MC. trey ScenarioThe third scenario revolves around the Chemical Division, which is operating in a oligopolistic market. The industry is fixed, and as the... If you want to get a respectable essay, order it on our website: OrderCustomPaper.com

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