Learning Team Deliverable Essay

This hebdomad we learned that industries consist of all stiffs making like or identical products. Their market structure depends on the number of firms in the constancy and the counselings in which they compete. Our text discussed four basic market structures. The graduation exercise market structure is perfect argument. Perfect argument occurs when numerous small firms are in argument with to each champion other. Businesses in a belligerent industry produce the socially best output direct at the absolute minimal possible be per unit. Another signsetters case of market structure is bop as a monopoly. This is an easy enough conception to comprehend, but I went back and forth with a few classmates as to different examples of a monopoly. Technically, a monopoly is a business that basically has no competitors in its industry. They reduce output to drive up prices and append profit. In doing so, they produce less than the socially optimal output aim and produces at hig her monetary value than competitive businesses.One example of a monopoly would be the existence of only one option in utilities in any particular region. The third type of market structure is known as an oligopoly. This is a type of industry that has precise few firms, and if they interact they can reduce output and drive up profits much like a monopoly does. This doesnt always work though because a corporation of times businesses impart not honor their conformity with their competing industries. This will make the firms end up competing against each other for consumers business. An example of this type of structure would be the airline industry. This type of situation often benefits consumers. The quartern type of market structure is a noncompetitive competition. In this type of structure industries watch slightly different products, but still compete against one another.One example of this would be restaurants, and how they all attend to food, but different types and at d ifferent prices in different locations. Consumers also benefit from the varieties in this type of marketstructure. How do markets evaluate the effectiveness of competitive strategies in their structures? For example they do so by evaluating their products, and differentiating their products to survive in the long run. The main way to evaluate the effectiveness is to check the bottom line. The intention of every business is to make money, so an emergence in profits will let you know your strategies are effective. Profit maximization is a base that I personally found a morsel intimidating. Profit maximization is the process of obtaining the highest possible level of profit through the production and sale of goods and services.This hypothesis is the guiding principle underlying production by a firm. In a perfect competition structure, it can be tough to maximize profits. A monopoly has free range to do as they will and therefore it is easier to maximize profits. In an oligopoly ma rket very forms of collusion can reduce competition and authorize to higher cost for consumers and higher profits for themselves. strategical planning by oligopolists must take into depict the likely responses of the other firms in their market. In a monopolistic structure the firm maximizes its profits by equating marginal cost with marginal revenue.The intersection of the marginal cost and marginal revenue curves determines the firm equilibrium. The behavior of a monopolistic structure and a monopoly structure appear to be quite similar, especially in the short run. In summary, week 3 was a week packed with interesting conversations started by discussion questions. We are still in a bit of a haze when it comes to economic in general, but are clinging on to hope that we have enough of an understanding to be successful. Research and perusal is the key, making yourself more familiar with the terms and their meanings.