Differentiating Between Market Structures Essay - 1446 Words

Markets are different, without these different markets there would not be any structure. Being able to understand different markets and its language, like demand, supply, average variable cost and marginal costs we can better prepare for economic and financial future. The market structure and the interaction that occurs can be defined by the number of businesses, and barriers new firms have when entering a particular market. Perfect competition, monopoly, monopolistic and oligopoly are four forms of market structures recognized by economists. Compare and Contrast Public goods are by their nature non-exclusive (people cannot be prevented from enjoying the good or it is prohibitively costly to do so) and non-rival (when one person consumes†¦show more content†¦The cost of having a firm such as water and power is so high that it is not profitable to build another firm to compete. Typically natural monopolies are utilities, which are regulated by the government to prevent them from exploiting with high prices. Natural monopoly should not be compared to Monopoly, as monopolies are normally short lived due to the technological advances developing competition for an industry. (n/a, June 6, 2005, 2/5). Common recourses, simply includes objects that everyone can use. Example: nature like air, and roads where we drive on and or walk on. These common resources can be goods or services that people contribute to the cost of the production by taxation that affects the value of land. Nature can provide us all the basics such as trees that mankind can use to make furniture, boats and, many other useful products. These natural resources can create labor, tools, and the cost of the product that brings profit and increases the economy by the circular of human efforts by labor and sales of a finished product. Other examples of common recourses are irrigation systems, fishing grounds, pastures, forests, water, and the atmosphere (Acheson, 1988, 1/3). Public goods are the non-exclusive that represents a type of service that is available to public such as doctors. When an individual, pays a doctor visit, it does not reduce any visits from the rest of the public. In another words, the use of something by one person will not takeShow MoreRelatedDifferentiating Between Market Structures1766 Words   |  8 PagesDifferentiating between Market Structures Jessika Canales Dà ­az ECO /365 08/28/2010 Instructor: SR. Carlos Mà ©ndez David Differentiating between Market Structures In this simulation, the learner studies the cost and revenue curves in different market structures perfect competition, monopoly, monopolistic competition, or oligopoly faced by a freight transportation company, and makes decisions to maximize profits or to minimize losses. 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There exist several different market structures like perfect competition, oligopoly, and monopolies among others. These markets all produce different types of goods or services, like public and private goods as well as common and collective goods. Firms operatingRead MoreDifferentiating Between Market Structures1134 Words   |  5 PagesDiffereantiating Between Market Structures Identify  the market structure in which this organization competes. Clearly indicate why the market structure was decided upon and how this market structure differentiates from the other alternatives.   MARKET STRUCTURE The interconnected characteristics of a market, such as the number and relative strength of buyers and sellers and degree of collusion among them, level and forms of competition, extent of product differentiation, and ease of entryRead MoreDifferentiating Between Market Structures Essay1077 Words   |  5 PagesDifferentiating between Market Structures The structure of a market is defined by the number of firms in the market, the existence or otherwise of barriers to entry of new firms, and the interdependence among firms in determining pricing and output to maximize profits. The author of this paper will cover: the advantages and limitation of supply and demand identified in the simulation, the effectiveness of the organization in which the author knows, and how the organizations in each market structureRead MoreDifferentiating Between Market Structures Essay1105 Words   |  5 PagesDifferentiating Between Market Structures ECO/365 Principles of Microeconomics August 30, 2012 Differentiating Between Market Structures Retail sales are indicators of microeconomic conditions presented in a given area at a particular place in time. Since Sam Walton opened his first Wal-Mart store, Wal-Mart has been making ripples throughout the micro economies of America. Wal-Mart’s market structure is typical of most of our nation’s largest corporations in that they are an oligopoly (BrownRead MoreDifferentiating Between Market Structures Essay1260 Words   |  6 PagesDifferentiating Between Market Structures Yvonne C Rivera ECO/365 May 16, 2013 Paul de la Pena Abstract There are many TV service providers available in the U.S; however there are only two companies that offer services via satellite. Dish operates within the monopolistic competition market. Dish has been in business since the early 1980’s and has gradually worked its way up to become one of the leading satellite provider and innovator of new technology. In 2013 they offer service to over