East-West Transportation Inc Market Structure Simulation

East-West tape drive Inc foodstuff Structure SimulationUniversity of Phoenix OnlineDecember 1, 2008East-West pabulum Inc commercialise Structure SimulationThe simulation offered by the University of Phoenix in society with the Principles of Microeconomics focuses on real life situations in securities industriousness structures of firms. The scenario creates a distinction of commercialize structures within a undivided corporation. The East-West conveyance of title Inc illustrates four divergent types of food merchandise structures within the firm. The classs of the firm, which create the different foodstuff structures, are Consumer Goods, Coal, Chemicals and the Forest Products. Market structures, for firms, are a derivative of the number of firms in the token market, barriers of entry for young firms and the distinct sharing with other firms in the same market in creating and determining pricing for consumers and exploit profits (University of Phoenix, 2008). The market structure simulation focuses on the capacity of the CEO of East-West Transportation Inc to study and analyze the cost and tax revenue curves faced by the freight transportation company. These cost and revenue curves, consists of Marginal value (MC), Marginal Revenue (MR), mediocre conglomeration Cost (ATC), and Average Variable Cost (AVC). The CEO of East-West Transportation Inc determines through these studies where and how to structure the different divisions.

The CEO focuses on the division?s advantages and limitations of add on and demand; the effectiveness of the divisions; and how for each one division of the firm maximizing profits and ! minimizing loses. Advantages and Limitation of cut and DemandThe Consumer Good?s particle of East-West Transportation Inc operates as a perfect competitive market. A perfect competitive market structure has ?a commodious number of buyers and sellers? (University of Phoenix, 2008, ¶5). With this type of market structure, no company controls the market price. The CEO develops the market price to determine the output of product to maximize profits. The CEO, If you want to hold a full essay, tack together it on our website: OrderCustomPaper.com

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