Maximizing Profits

Maximizing Profits in Market Structures

XECO/212

April 21, 2013

In this day and age it seems as though money is the answer to all prayers. This for some being all the motivation needed to get a degree and become successful. Some will go on to work for million dollar businesses while others invest into their own business later to expand by opening up other businesses to incorporating. Before long you may be looking at your very own monopoly or oligopoly, whichever rode you end up on it may well be worth all your hard work and pain.

The market structure is made up of competitive markets, monopolies and oligopolies. They each have distinct characteristics and some very similar. When it comes to the competitive markets its characteristics set it apart from the others because there aren't any set rules, it's basically and open ended field for example one characteristic is that there are many buyers and many sellers which means that no set number can sale goods or services nor is there a restriction to how many people shop and from whom. Another characteristic is that the goods sold by most of the sellers are the same which means that because most items sold are similar one can look for the best prices or deals before purchasing such goods. Lastly just about anyone can start up a business at any moment and close up shop if not profitable relieving them of any barriers to entry or exit. A Monopoly has several key characteristics however, the three most familiar are that of the single supplier which is none other than one person having control of selling. The next characteristic is the unique product which is that one person selling an item that he or she only has access to or produces. As for the next characteristic with a monopoly it consists of barriers to entry and exit. Those barriers to entry are government licensing or franchise, ownership of such goods or service, patent or copyright, costly start up and the decrease of total...