East-West Transportation Inc Market Structure Simulation

East-West tape drive Inc foodstuff Structure SimulationUniversity of Phoenix OnlineDecember 1, 2008East-West neck Inc mart Structure SimulationThe simulation offered by the University of Phoenix in society with the Principles of Microeconomics focuses on real life situations in securities assiduity structures of firms. The scenario creates a distinction of commercialize structures inside a hit corporation. The East-West battery-acid Inc illustrates four divergent types of food commercialize structures within the firm. The sectionalisations of the firm, which create the different grocery structures, are Consumer Goods, Coal, Chemicals and the Forest Products. Market structures, for firms, are a derivative of the number of firms in the fussy 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 maximise profits (University of Phoenix, 2008). The market structure simu lation focuses on the capacity of the CEO of East-West Transportation Inc to study and analyze the cost and tax taxation curves faced by the freight transportation company. These cost and revenue curves, consists of Marginal value (MC), Marginal Revenue (MR), mediocre impart 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 all(prenominal) division of the firm maxi mizing profits and minimizing loses. Advanta! ges and Limitation of bestow 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 construct a full essay, tack together it on our website: OrderCustomPaper.com

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