Maximizing Profits in Market Structures
Maximizing Profits in Market Structures Paper
XECO/212
December 16, 2012
Maximizing Profits in Market Structures Paper
Today's economy has many different factors that keep in afloat and keeps spending at an all-time high. There are many determining factors that dictate what direction our economy will be heading in. Some of the most important factors in regards with dealing with create revenue for the western worlds are market structures. The most important of the market structures would easily be competitive markets, monopolies and oligopolies. While to the laymen these things may seem all the same these market structures are very different.
Competitive markets are known for having products that are open to the public and having many distributors. As a result considering that this is a product that is open to the public that is easily accessible yet has many distributors causing competitions between distributors. Oligopolies on the other hand a few a very limited numbers of distributors so if something happens to a seller it can have a large effect on the market and can easily eliminate a product being sold in this market structure at a whole. A monopoly on the other hand has complete control over a product that it manufactures in most cases exclusively. When thinking of a monopoly a prime example would be Apple as their products are so different from their competition even though it's only a different platform their products are so apart from the competition that they have exclusive differences. A prime example of a Oligopolies would be products that are hard to obtain, one that comes to mind would be antiques a type of product that loses its value if it's been reproduced, worth a lot of money by itself yet isn't sold on an international level and if there was a prime distributor of them and their sales took a plunge their business would probably take a plunge with it. The animation business is a good example of an oligopoly; even though it doesn't
XECO/212
December 16, 2012
Maximizing Profits in Market Structures Paper
Today's economy has many different factors that keep in afloat and keeps spending at an all-time high. There are many determining factors that dictate what direction our economy will be heading in. Some of the most important factors in regards with dealing with create revenue for the western worlds are market structures. The most important of the market structures would easily be competitive markets, monopolies and oligopolies. While to the laymen these things may seem all the same these market structures are very different.
Competitive markets are known for having products that are open to the public and having many distributors. As a result considering that this is a product that is open to the public that is easily accessible yet has many distributors causing competitions between distributors. Oligopolies on the other hand a few a very limited numbers of distributors so if something happens to a seller it can have a large effect on the market and can easily eliminate a product being sold in this market structure at a whole. A monopoly on the other hand has complete control over a product that it manufactures in most cases exclusively. When thinking of a monopoly a prime example would be Apple as their products are so different from their competition even though it's only a different platform their products are so apart from the competition that they have exclusive differences. A prime example of a Oligopolies would be products that are hard to obtain, one that comes to mind would be antiques a type of product that loses its value if it's been reproduced, worth a lot of money by itself yet isn't sold on an international level and if there was a prime distributor of them and their sales took a plunge their business would probably take a plunge with it. The animation business is a good example of an oligopoly; even though it doesn't