Market Structure and Analysis - 996 Words

There are a few different market structures, competitive market, monopolies, and oligopolies. According to Mankiw (2007) competitive market, also known as monopolistic competition or â€Å"perfectly competitive market† is defined as â€Å"a market with many buyers and sellers trading identical products so that each buyer and seller is a price taker† (Pg. 290). In this market structure there are two characteristics: there are many buyers and many sellers in the market and the goods offered by the various sellers are largely the same. Maximizing profits in a competitive market is the difference between total revenue and total cost. There is a distinction between accounting and economic profits: economic profits equals’ sales revenue minus economic costs and account profits equals sales revenue minus accounting costs. The objective for a competitive market structure to maximize profits is to determine the optimum level of output at witch marginal cost equals market price. Output is determined in this structure by using the marginal decision rule and increasing output to the point which the benefit of the additional unit of output is equal to the marginal cost. The role of competitive market structure in the economy is important. This structure allow any firm to enter and exit, while buyers and sellers having little impute in the in the price which is determined by the market. An example of competitive market would be agricultural farming of wheat. There are many producers of wheat andShow MoreRelatedAnalysis Of Different Market Structures Of A Market Structure2335 Words   |  10 Pages Analysis of Different Market Structures Student s name Course name and number Instructor s name Date submitted Analysis of Different Market Structures 1. Introduction The small number of market structure consultancies across the globe shows that the market structure concept is itself considerably new. Clearly, various market structure components have been widely studied over the years: derivatives, exchange, trading, and clearing. Even then, there has been no holistic examination of theRead MoreAnalysis of Market Structures10585 Words   |  43 PagesAn Analysis of Market Structures and Their Related Pricing Strategies Christa Jones American Public University Systems Abstract Market structures influence a firm’s behavior and profit opportunity and are therefore critical to understanding how a market functions. The conditions that distinguish each market structure define the level of competition observed within the market which in turn determines the profit level that can be made. Because pricing strategies are intended to maximize a firm’sRead MoreMarket Structure Analysis in Tanzania5537 Words   |  23 PagesMarket structures Analysis- Term Paper INTRODUCTION Generally the concept of market structures can be essential to marketing and economics. Both emphasize the environment in which these companies operate and its importance it has on strategic decision making. Economics is more concerned about the degree of market competition and the pricing strategies of these firms. Marketing, on the other hand, concentrates its focus on consumer behaviour. Basically there are four major market structuresRead MoreMarket Structure Analysis of McDonalds652 Words   |  3 PagesMcDonalds Market Structure: Market structures can be described as the models of markets or the specific social organization that exist between buyers and sellers within a particular market. They can also be defined as the characteristics and organization of a specific market in which a company conducts its business. While there are normally four kinds of markets, markets can be classified based on their degree of pricing and competitiveness. As one of the leading fast food chain restaurants acrossRead MoreEconomic Analysis of an Oligopoly Market Structure1715 Words   |  7 Pages1. Introduction 1a. Article Summary In this article Michael Baker discusses the livelihood of small retailers in a market subjugated by the financially dominant oligopolies, Woolworths and Coles. While the small independent retailers in direct competition with Woolworths and Coles provide some competitive respite for consumers, as they encourage competitive pricing, albeit predatory pricing, it is clear that Woolworths and Coles control the supermarket industry in Australia, in the formation of aRead MoreApple Inc Market Structure Analysis Essay1825 Words   |  8 Pagesi) Apple inc market structure As ayola web site view Diffirent economic blogs We can consider apple is oligopoly in smart phone market , while it is a duopoly in computer operiting system . The Demand curves of Apple Computers: And thair is some expections that apple may be a monopoly, that which may be not agood ,becouse it making apple buyers and fans worry about product quality over time . Oligopoly market structure characterized by : (few number of salers,high ability to control the priceRead MoreApple Inc Market Structure Analysis Essay1432 Words   |  6 Pages(i) Apple inc market structure As ayola web site view Diffirent economic blogs We can consider apple is oligopoly in smart phone market , while it is a duopoly in computer operiting system . And thair is some expections that apple may be a monopoly, that which may be not agood ,becouse it making apple buyers and fans worry about product quality over time . (ii) its market share and major competitors As every one know that apple created its loyal fans due to its quality , that make it hard forRead MoreAnalysis of Market Structures and Pricing Strategies Essay1114 Words   |  5 PagesAnalysis of Market Structures and Pricing Strategies The markets today are so complex and deal with so many variables it can be difficult to understand just exactly how they operate. In the following I will reveal the different kinds of market structures along with their different pricing strategies. Relating to these topics, I will focus on the importance of cost, competition and customer. 1. Analysis of different market Structures DifferentRead MoreAn Economic Analysis Of Tata Steel s Market Structure3445 Words   |  14 PagesAn Economic Analysis of TATA Steel’s Market Structure, Strategic Competitive Issues, and Policy Advice Introduction Established in 1907, TATA Steel is one of the oldest and most successful steel companies in the world. Headquartered in Mumbai, India, TATA Steel ranks as the number 12 Steel Company in the world, with sales of over 23.8 million tonnes of steel per year. It currently stands as not only the largest private sector company in India, employing over 80,000 people, but the most profitableRead MoreKudler Fine Foods: Analysis of the Market Structures and Strategic Planning1079 Words   |  4 PagesAbstract This paper presents an analysis of the market structures, strategic planning, market environment, and internal environment of Kudler Fine Food in order to suggest the best market structure which can be helpful for its long-term profitability and recommend strategies which can make it more competitive and successful among its industry rivals. Difference between Market Structures There are four types of market structures: Monopolistic Competition, Monopoly, Oligopoly, and Perfect Competition