Quasar in Market Structures Free Essay, Term Paper and Book Report
Since every single person is unique and will contribute different to every situation it can be said that each person is a monopoly of abilities and characteristic. It is not entirely true that monopolies can sell its products for as much as they want even though their products are unique. Like monopoly there are three other market structures: Oligopoly, monopolistic competition and pure competition. This paper will talk about how Quasar Computers will move through the market structures and its pricing strategies at each market.
Quasar Computers (QC) created at a monopoly market with the invention of an optical notebook computer. QC owns the patent for the next 3 years so the price can be decided by QC to receive highest profit. To receive highest profit QC must take into consideration Marginal Cost (MC), Marginal Revenue (MR), Average Total Cost (ATC) and Demand. QC can put a really high price because the demand will drop and the ATC will be higher and potentially lose profits. To maximize profit QC must produce the amount of computers where MC equals MR and sell i......
Word Count: 1631
Page Count: 6.5 (250 words a page / double spaced)
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