Maximazing Profit

Assignment: Maximizing Profits in Market Structures Paper XECO/212 University of Phoenix The grammatical construction of a foodstuff is defined by the number of riotouss in the market, the existence or otherwise of barriers to launching of new firms, and the mutualness among firms in determining pricing and output to maximize remuneration. This paper covers the following: the advantages and limitation of supply and demand, the characteristics of each market structure, the barriers to entry and how organizations in each market structure maximize profits.  Markets ar the heart and soul of a capitalist economy, and varying degrees of emulation lead to different market structures, with differing implications for the outcomes of the market place. The goal of a firm is to maximize profits, to get as much for the firm as possible. In the perfect competition, each firm maximizes profits where marginal revenue (MR) equals marginal cost (MC). That is, the additional revenue from producing additional quantity equals the additional cost incurred in producing that quantity. At an output where MR is greater than MC, increasing production increases profits. If MR is less than MC, change magnitude production increases profits. Therefore, MR=MC is the profit-maximisation condition.

In perfect completion, the price is a given for each firm, P=MR. This is because the fixed price per social unit is the additional revenue the firm can expect to take in by selling additional quantity. The firms profit- maximization condition becomes P=MR=MC. In the long run, however, all cost ar variable. All firms in a perfectly belligerent market make zero economic profit in the long run, because if profit was being made, more firms would enter the market and market prices would decline until all firms made zero profit. These elements are perfect competition, monopolistic competition, oligopoly, and monopoly. Based on the differing outcomes of different market... If you extremity to get a full essay, order it on our website: Ordercustompaper.com

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