Analyzing different market structures is a good way to understand how our economy works The economy

Analyzing different market structures is a good way to understand how our economy works The economy

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Analyzing different market structures is a good way to understand how our economy works The economy is crucial in our daily lives and one important thing that we should considered studying, is the principles and roles of the markets, more specifically, the competitive markets, monopolies, and oligopolies. A competitive market has a near infinite amount of producers and consumers. Producers provide similar goods, which can easily be substituted for one another. Consumers are provided information so that they can make an informed decision. Companies vie against one another for business, keep cost to produce and cost to consumers low in an attempt to win consumer dollars. In a competitive market, price is determine based on sophisticated analysis of consumer buying habits, advertising cost, cost to produce, and the supply and demand curves. By choosing the perfect combination, a company can win the gambit and maximize their profit. Those who read the information incorrectly or are not properly informed will most likely fall short of their goal. In a competitive market, output again is driven by demand. The key is to limit production only to those buyers able and willing to purchase the good. Often, competitive
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/24/2011 for the course XBIS 219 219 taught by Professor Craigbowles during the Spring '11 term at University of Phoenix.

Page1 / 2

Analyzing different market structures is a good way to understand how our economy works The economy

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online