Differentiating Between Market Structures Simulation

NAMECOURSELECTURERDATEUNIVERSITYADVANTAGES AND LIMITATIONS OF SUPPLY AND DEMANDSupply and demand is one of the laws of perfect competition . The go forth is pertinacious by the demand while the demand is determined by various factors including income , harm , necessity , tastes and preferences among many other unlisted factors . Both submit and demand determine the bell because an increase in demand leads to an increase in price and consequently the supply . Once the supply increases the demand is met and indeed a reduction in the price when operating in an ideal market like the perfect competition . In variant market structures the case may be distinguishable and also the type of good or answer in questionIn the simulation , the example is that of a freight deport caller The company is involved in the conveyance of various products and indeed is sectioned into different divisions . These divisions involve consumer goods , char , chemicals and forest products . individually of these divisions pot be identified as belonging to a different market structure and hence each has different advantages and limitationsIn the consumer goods division , thither is perfect competition as there are a lot of transport options that can communicate the same service as the freight transport . This would include automobiles , ocean transport or even air transport . The competition is high and hence the demand for the service is first gear . To continue supplying this service would mean that the company would endure to spend more on improving the quality of its service so as to maintain and increase the demandIn the transportation of coal and forest products which are bulky , the freight transport is the high hat option although the other modes of transport can also be used . It can hence be assumed to attest characteristics of a monopolistic competition market structure .

This is because the large number who prefer to use this sort of transport will not change it though there are other path of transporting the products This then direction that this is a more secure nation of demand unlike the demand for consumer goods transportation . The company can afford to set a favorable price on the servicesChemical transportation can also be classified under(a) monopolistic competition because although there are many means of transportation available , the best option is the freight transport . This is because it saves on cost and can be done oer long distances for large quantitiesIn each sector one realizes that the supply and demand of the services provided by the company determines whether it will draw away to stay in the industry or it will submit to close . If it closes down , the question is when it will and after subject how much scanty cost in doing so . For it to bring through it will need to up-grade its services in the sectors and this means extra cost for which it does not have the capital to do so . In trying to survive it may end up running itself down some more and hence snip the demand for...If you want to get a full essay, regularize it on our website: Ordercustompaper.com

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