Discussion: Principles of Micro-Economics

The market structures influence how price and output decisions are made by the firms in their respective structure. In all market structures, one of the primary goals is to maximize profits or minimize losses.

One of the major differences between these market structures is how price and output decisions are made, which in turn depends on the characteristics of each market structure. There are four market structures:

1. Perfect competition
2. Monopolistic competition
3. Oligopoly
4. Monopoly

Tasks:

1. Construct a table that describes the various characteristics of each market structure.

2. Identify a firm for each of these market structures and explain why each firm belongs in the market structure identified.

3. Using Microsoft Excel, construct a graph for each of the market structures and explain how price and output decisions are made in each structure and how they differ.

4. How is marginal analysis used in the price and output decisions of firms in the various market structures?

Deliverables:

• Prepare a 2-3 page Microsoft Word document that addresses the questions above and meets APA standards.

• Include a summary section in your report that contains 5-7 bullet points identifying your major findings or conclusions of your paper.

• Submit the summary section as your initial post in the Discussion Area by the due date assigned. Include the full report as an attachment to your posting.

• Continue your discussions until the end of the week by commenting on at least two other submissions by your peers, identifying the strengths and weaknesses of each post.

• All submissions must be original and all resources must be properly acknowledged.