Market Structures Essay Example | Topics and Well Written Essays - 750 words - 2

commercialize Structures - Essay ExampleMonopolistic disceptation along with oligopoly constitutes the structure of imperfect competition. Firms that are imperfectly agonistical offer many products. The products are offered at administered prices. The price changes are costly and slower. The prime prediction of the possible action of monopolistic competition is that firms will produce at the level where fringy cost equals marginal tax in the short run. However in the long run, the firms will operate at zero wage levels and the demand curve will be tangential to the total total cost curve.The figure shows the marginal cost curve for the monopolist (MCsm) for the short run. MCsm is the summation of the short run supply curves (SRSc) in the emulous securities industry. The loss of producers surplus (area B) and consumers surplus (area B) arises from the profit maximizing decision of the monopolist. A monopolistically competitory firm nooky operate above the level of normal p rofit.The above figure represents the economic loss for a monopolistically competitive firm. For a monopolistically competitive firm economic profits are zero and at equilibrium average total cost equals price. Both the firms in monopolistic competition and perfect competition are open to zero profits in the long run. It is possible for a firm operating in the monopoly market to acquire economic profits in the long run.The price is greater than the minimum point of mediocre total cost curve in the long run but in perfect competition price equals minimum of average total cost. In perfect competition price is lower and make is higher than monopolistic competition.A form of market where the industry is dominated by small depend of sellers is called oligopoly. Each oligopolist is aware of the market conditions as few sellers are present in the market. The decision of unrivaled firm can influence or are influenced by other firms. The responses of the participants of the market are i nterpreted into account in