Differentiating between Market Structures Simulation

Differentiating mart Supply Simulation Paper

University of Phoenix

Micro Economics

ECO365

March 1, 2010

?	Perfect Competition	Monopoly	Monopolistic Competition	Oligopoly
Example	Borden	Center point	Continental	GM
Goods/Services	Dairy Retail	Energy	Airlines	Car Industry
Barriers To Entry	Few Barriers	No Entry	Few Barriers	Many barriers
Number of Organizations	Large Number of Firms	One Firm	Many Firms	Few Firms
Price Elasticity	Perfect Elasticity	Inelastic	Elastic	Inelastic
Economic Profits	No	Yes	53%> Short Run - Profit Long Run - No Profit	Yes

The simulation entitled `Differentiating between Market Structures is about a transport company called the East-West transportation Inc. The transportation company has four divisions that they operate; Consumer Goods, Coal, Chemical, and Forest Products. Each of these divisions operates at bottom four different grocery store structures. The grocery store structures that they operate in are Perfect Competition, Monopoly, Oligopoly, and Monopolistic Competition. In this paper, it will reiterate the simulation and give a brief understanding of each(prenominal) step in the decision process.

In economics, markets are categorized according to the structure of the industriousness serving the market. Industry structure is categorized on market structure variables, which are believed to determine the extent and characteristics of competition. Those variables, which have authoritative the most attention, are number of buyers and vendors, extent of product substitutability, costs, substitute of entry and exit, and the extent of mutual interdependence [Baumol, 1982; Colton, 1993]. In the traditional framework, these structural variables are distilled into the following taxonomy of market structures: These four market structures each represent an abstract exposure of a market type (Williams, 2010).

• Perfect Competition--many sellers of a standardized product,

• Monopolistic Competition--many sellers of a tell apart product,

• Oligopoly--few sellers of a standardized or a differentiated product, and

• Monopoly--a single seller of a product for which there is no close substitute.

Perfect Competition
The first...

If you want to get a full essay, order it on our website: Ordercustompaper.com



If you want to get a full essay, wisit our page: write my paper