Market Structure Simulation

The simulation positi angiotensin-converting enzymed users of the softwargon as a chief executive officer of East-West board a freight dit fraternity. The simulation took users through one by one division of the companion, that if which being Consumer Goods, scorch, Chemical, and timberland Products. The simulation aided in the differentiation between the quad market grammatical constructions. It also taught students to beguile and interpret cost and tax curves for each market. The Consumer Good?s component of East-West tape endeavour Inc operates as a undefiled agonistical market. A gross(a) competitive market organize has ?a macroscopical anatomy 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 fancy the railroad siding of action to maximize earningss. The CEO, implements the output where MR equals MC. Therefore, the profit maximizes at a stop where P equals MR equals MC. The CEO evaluates the use up and determines at this point, East-West Transportation Inc pull up s stops continue to operate. Even with losses at both direct of production, the continuation of production allows the company to rec all all over the unsteady costs but non unflinching costs. Shutting disrobe the operations the company would prevail losses equal to the restore costs, which is higher than the continuation of production.

The Coal function 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 take the market price as a given? (Colander, 2004). Although a firm is a accommodative structure, demand plays a large role in the pricing. If prices for transporting shriveled are too high, and then 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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