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Monday, February 11, 2013

Maximizing Profits in Market Structures

Maximizing Profits in Market Structures




Name

University of Phoenix

Angela Rogers

XECO 212

AUGUST 5, 2012




















The sparing today is important in our daily lives and how our society operates. or so of the

most important intimacys that we should consider when studying economics is the principals and roles of

the food grocerys, the militant securities industrys, monopolies and oligopolies. All of these ar important to the

consumer. Economists assume that there are a number of different buyers and sellers in the

marketplace (investopedia).

The competitory market can be defined as a market with many buyers and sellers who trade

identical harvest-feasts so that each of the buyer and sellers is a price taker (Principles of Economics, p.290).

In the competitive market, each and both seller and buys accepts the predetermined price for the

good. The cost of a product is determined by how much the buyers are willing to reconcile for the product

and how much the seller is willing to sell the product for. When communicate about the competitive market

another trait is that any seller offers the product can enter or exit the market without any restraints

(Principles of Economics, p.290).

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When a firm is competitive is when the price that the bank line charges

for the products, is equivalent to the marginal cost which makes the good and is, or really close to the

equilibrium (Makiw, p. 3060). When someone is describing the market the first thing that they will

describe is that the market is competitive, and this is due to prices of goods going up and down.

This helps the market stay competitive with the economy. In the economy that we currently subscribe if you

are selling goods and you are not competitive you whitethorn lose business to your current competitors or

future competitor.



An important market structure is the monopolistic market. According to the research that I

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