each type of market structure has as main fear maximizing profit by subtracting the resume court from the total revenue, and this is being de terminal figureined in each market structure by different measures.
A competitive market is characterized by numerous buyers and sellers who offer homogeneous harvest-times and the prices for these increases are being found by the market. The high competition in this type of market leaves the sellers with a very low bargaining power, and the cost of a product or service is established by how oft the buyers are willing to pay, as well as by how much the sellers are willing to sell the goods or the go for. Businesses have no barriers to enter or exit the market and companies tend to operate at a marginal cost which equals the marginal revenue, or where they break even on the go away unit produced, resulting in a zero profit, or equilibrium, in a long run.
In the long-run equilibrium, prices equal to the lower limit of the average total costs, and the number of the competitors adjusts to ensure the satisfaction of the demanded measuring rod and that price.
In the short run, the increase in demand causes prices to go up and leads to profit, as the decrease in demand lowers prices and causes losses.
A monopolistic market is characterized by the existence of only one producer and seller, which places the conditions of access and the availability on the market of a product or service, which doesnt have any close substitutes, term specific to a sellers market. The absence of competition allows the monopoly firm to control the supply and demand of the unique product or service that is offered, as well as dictate its price, which is regularly high...If you want to get a full essay, recite it on our website: Ordercustompaper.com
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