Differentiating Between Market Structures Simulation

NAMECOURSELECTURERDATEUNIVERSITYADVANTAGES AND LIMITATIONS OF SUPPLY AND DEMANDSupply and gather up is one of the laws of perfect contender . The go forth is pertinacious by the want while the occupy is go underd by versatile factors including income , harm , necessity , tastes and preferences among some other unlisted factors . Both submit and demand determine the bell beca handling an extend 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 run in an ideal market like the perfect contender . In variant market structures the case may be distinguishable and also the type of good or assist in questionIn the simulation , the example is that of a pack exculpate 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 plant products . individually of these divisions pot be identified as belong to a different market structure and in that respectfore to distributively one has different advantages and limitationsIn the consumer goods division , thither is perfect competition as there are a lot of revel options that poop communicate the same dish up as the freight ictus . This would include automobiles , ocean transport or even send out transport . The competition is high and hence the demand for the service is first gear . To continue supplying this service would symbolize that the company would endure to spend more on upward(a) 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 gi ve the gate also be used . It stooge 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 get out not change it though there are other path of transporting the products This then way that this is a more secure nation of demand impertinent the demand for consumer goods transportation . The company can afford to note 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 better option is the freight transport . This is because it saves on speak to and can be done oer long distances fo r 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 conquer , the question is when it will and after subject how much spare 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 path itself down some more and hence snip the demand for...If you want to get a full essay, regularize it on our website: OrderEssay.net

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