Economical Markets Paper Essay Example | Topics and Well Written Essays - 1250 words

Economical Markets Paper - Essay ExampleMonopoly is an economic building where there one partingicipant which controls the marketplace. . In such a market the firm realizing business controls the harm, plainly it is not immune to the law of demand and supply. The price is set at the quantity and price point which maximizes profit for a company.. The market demand is downward sloping, but the difference is that in order to maximize earnings price is not part of the equation and the formula is determined by the following equation, MR=MC. An example of an intangible asset which allows the formation of a monopoly in Parkersburg is Water City of Parkersburg Utility. The company is the still firm that produces water within the region, thus they are monopoly. Utility monopolies are at times received governmental incentives so that the basic utility go such as water and electricity become cheaper for the people living below the poverty.Another economic market structure is monopolisti c emulation. Monopolistic competition is a market structure in which there are lots of competitors and the players utilized differentiation in order to bring uniqueness to their produce strait discrepancies among similar products. In order to effectively compete in such a market it is important to differentiate the product. This can be accomplished though expert advertising, innovation or better production methods. The market demand curve in monopolistic competition slopes downward, thus the equation to maximize profits is MR=MC. Graphically to determine the price for this output the economist extends the quantity line to the demand curve. In Virginia a company that operates in monopolistic market structure is Dairy Queen Brazier. Dairy Queen is a company in the fast food industry which delivers a product that is unique for the industry. The offers classic burgers and hotdogs, but the company also offers gourmet dairy product such as fresh bread,