Market Structure Simulation

The simulation positi integrityd users of the softw ar as a CEO of East-West poster a freight transportation fraternity. The simulation took users through each division of the companion, that if which being Consumer Goods, burn, Chemical, and Forest Products. The simulation aided in the differentiation between the four market coordinates. It also taught students to check out and interpret cost and revenue curves for each market. The Consumer Good?s component of East-West tape drive Inc operates as a perfective agonistical market. A perfect competitive market grammatical construction has ?a boastful number of buyers and sellers? (Colander, 2004). With this type of market structure, no company controls the market price. The CEO develops the market price to coiffe the railroad siding of production to maximize meshings. The CEO, implements the output where MR equals MC. Therefore, the profit maximizes at a point where P equals MR equals MC. The CEO evaluates the battl eground and determines at this point, East-West Transportation Inc will continue to operate. Even with losses at both level of production, the continuation of production allows the company to rec all over the shifting costs but not unflinching costs. Shutting dismantle the operations the company would get under ones skin losses equal to the fixed costs, which is higher than the continuation of production.

The Coal Division of East-West Transportation Inc is a ?regional monopoly? (University of Phoenix, 2009). A monopoly structure firm has control over setting prices and therefore, ?does not bow the market pric e as a given? (Colander, 2004). Although a f! irm is a noncompetitive structure, demand plays a large role in the pricing. If prices for transporting sear are too high, because the demand will be low and profits are not high. The Coal Division maximizes profits when MR equals MC. If either one of these, MR or MC go below one or the other, the... If you want to get a full essay, order it on our website: OrderCustomPaper.com

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