StudentShare solutions
Got a tricky question? Receive an answer from students like you! Try us!

Research Paper example - Market Structure

Only on StudentShare
Research Paper
Pages 6 (1506 words)
Under perfect competition the economic welfare of a market structure will greatly determined by those economic circumstances under which a perfectly competitive market thrives. The basic characteristics are: -
1. Large number of sellers and buyers - the firms are infinite such that no individual is able to influence the market i.e…

Extract of sample

(Eaton, Diane and Douglas, 2002 pp.93)
The firm is in equilibrium if it maximizes profit defined as the difference between revenues and costs (** = R-C). The equilibrium point is where the firm produces the output that maximizes the difference between TR & TC curves as shown below.
In the short term the firm will either be making excess profits or losses depending on the position of an AC curves i.e. if the AVC curve lays below the price the firm is making excess profit as shown below.
It is only possible for the firm to be equilibrium. The short run without necessarily breaking even point. However, in the long run the firm will either make neither losses nor excess profit i.e. the break even point will be the equilibrium point for the firm as shown below.
The supply of such a firm may be derived by the points of intersection of MC curve with the successive demand curve. Assuming that the market prices increase gradually the demand curve will tend to shift upwards. Given the slope of the MC curve is positive each higher demand curve cuts the given MC curve on a point which lies to the right of the previous intersection. ...
Download paper
Not exactly what you need?

Related papers

Praxis Paper Business Research Paper
1.2 Introduction Many business environments are appreciating the importance of technology at the work place. Before, processes were manual, but today automated systems have been integrated in almost every business unit. In turn, practices, which are conducted by business, have improved. This is the reason why SUPERVALU has come up with an information system, which is comprehensive. Evolution of…
4 pages (1004 words)
Market Research Paper
This paper will focus on the most significant market research, which the Mander Portman Woodward college business could employ to improve its collection of market research data. Types of research data Market research refers to gathering and analysis of data or information concerning customers, competitors and, or the effectiveness of the business marketing programs. Small-scale business owners…
5 pages (1255 words)
How you would structure a project report?
Their goal for 2020 is to achieve 15% of their total energy from renewable resources. Another reason why the Government is especially interested in the development of this sector is because it has generated great interest from foreign investors. In additional to the investment that this will bring into the UK, it will create a multitude of job opportunities. The UK however needs to improve its…
4 pages (1004 words)
Marketplace Structure
Football has demonstrated strategy, highly structured competition, clear outcomes and profitability. In his book, Baye (267) identifies four market structures which include: competitive market, monopolistic market, monopolistic competitive market and oligopoly market structures. In a competitive market there are many participants selling a product. A single seller’s decision does not have any…
Monopoly Market Structure
In the operating system of monopoly there is usually one firm that provides the majority of the products and services sold and there may be a handful of smaller firms that might have little or no impact on the large dominant firm…
4 pages (1004 words)
Marketing Research Research Paper
It has not only reconfigured the way different firms do business and the way the consumers buy goods and services, but it has also become an effective instrument in transforming the value chain from manufacturers to retailers to consumers, creating a new retail distribution channel (Donthu and Garcia, 1999). E-marketing is a powerful tool used by different business organizations around the world.…
28 pages (7028 words)