MAXIMIZING PROFITS

Maximizing earnings in Market Structures

Maximizing earnings in Market Structures

Introduction

To maximize profits in a competitive market, monopolies, and oligopolies markets have many different strategies. These market structures are similar in many ways but have different traits. In a competitive market the price is set, in a monopoly the seller sets the price of their products, and in an oligopoly market a group of companies set production to control the price of the market.

 

Competitive Market

There are two characteristics of a comparable market, there are numerous purchasers and sellers of the goods and the parts suggested by the sellers are similar. The cost ...