Differentiating Between Market Structures Simulation

In the simulation, at that place are different scenarios that help to order between the grocery structures. The company is a freight transportation system industry that will face different markets. The four market structures that will be explored in the simulation are faultless competition, monopoly, monopolistic competition, and oligopoly. In the first scenario, the business was to decide whether to keep a breakdowns operation or to shut the division down. The otherwise task was to determine the quantity of harvest-home that would minimize avail loss if the division were to continue with operations. Upon completion of the scenario, It was headstrong that by continuing operations part of the operation costs could be recovered. By having a market cost of $55 per quintal shipment, the ships are at 6.75 million and the losses have been minimise to $150.03 this scenario determined that this division operates in a perfect agonistic market. A perfect competitive market contains multiple buyers and vendors with the product being identical for all sellers. This means that no seller can control the market place. In the second scenario, the task is to decide the toll that will maximize profit and quantity. It was determined that this coal division is a monopoly.

As a monopoly, there is a lot of control over price and quantity. It was cognizant to lower price and increase quantity, by doing what was advised, the revenue will be maximized but not the profits. By set the price at $7.85 per ton, and having 8.28 million tons shipped, the profit was at 2.67 million. This has maximized the profit. The triplet scenario has the task of determining if it is necessary to react to a price cut and what price to set for maximized profits. By not undercutting the competition, the division is able to stabilize the years prices. By setting the price at $3,300, the profit was $23.13 million. The market structure of this scenario was duopoly; this is a special case of... If you want to get a liberal essay, order it on our website: Orderessay

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