Essay

Cassandra Murray, Week 4 Assignment Market Structures and Maximizing Profits
Market Structures is the number of firms producing identical products which are homogeneous.   The interconnected characteristic of a market such as the number and the relative strength of buyers and sellers and degree of conclusion among them, level and forms of competition.   There are several types which are Monopolistic competition which is also called competitive market where there is a large number of firms each having a small proportion of the market share and slightly differentiated products. There is also Oligopoly in which a market is dominated by a small number of firms that together control the majority of the market share.   Duopoly, a special case of an oligopoly with two firms.   Oligopoly, a market where many sellers can be present but meet only a few buyers, perfect competition a theoretical market that features no barriers to entry an unlimited number of producers and consumers and a perfectly elastic demand curve   and there is Natural Monopoly in which economies of scale causes efficiency to increase continuously with the size of the firm.   The concept of market structure is both economics and marketing.   Market structure is important and in that it affects market outcomes through it impacts on the motivation, opportunities and decisions in economic actors participating in the market.   The goal in economic market structure analysis is to isolate these affect to attempt to explain and predict market outcomes (McNulty 1968: Broaddus. 1991).     Maximizing profits is the short run-long run process by which a firm determines the price and output level that returns the greatest profit and is a process where companies undergo to determine the best output and price level in order to maximize its return.   The company will usually adjust influential such as production cost, sale price, and output levels as a way of reaching its profit goals.   There are two main profit maximization...