Maximizing Profits in Market Structures

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|Market Structures Table and Questions                                                                                                         |
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|Colleen Nickerson                                                                                                                             |


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Market structures are the amount of firms in the current market, the barriers to entry for new firms, and the independence of firms determining pricing to increase and maximize total profits.   This paper will cover the following: price determination and output determination in each market in terms of maximizing profit, barricade of entry, the characteristics of each market structure, and the role each market structure plays in the economy.   Four elements that I will also cover and discuss are: monopoly, oligopoly, competitive markets, and monopolistic competition.

Each market structure has a different outcome due to certain characteristics which makes some markets more desirable than others.   To determine where you fit in the world of market structures depends on what your competition, oligopoly, monopoly, or what your key principle and financial ability is.   The total number of firms that supply a certain product in the market determines to what extent the industry competitions exceeds.   The characteristics are the number of firms in the market, type of product sold in the market, control...