Eco 204 Week 3 Assignment Quoting

Structure of the Local Economy2Market Structure AnalysisEvery region has a distinctive business environment consisting of economic, social, technological, and legal elements. The combination of these characteristics determine the prospects of company’s operations in a particular state, like the ease of entering the market, control over the price setting, and the maximum amount of profits a firm can expect to receive ina given period. Market structure is an important business environment factor, which can be argued to impersonate the combination of the abovementioned economic, social, technological, and legal characteristics. The typical definition suggests that market structure is “a set of buyers and sellers, commonly referred to as agents, who through their interaction, both real and potential, determine the price of a good, or a set of goods” (“Market Structure, 2012, para. 1). In this paper, a thorough analysis of each market structure is presented; its characteristics, and its behavior under the impact of various factors as felt throughout the market structure in Hawaii.MonopolyThe textbook defines monopoly, derived from the Greek as one seller, and thus a market structure in which there is a single seller of a product that has no close substitutes (Amacher & Pate, 2013). The following characteristics can characterize a monopoly: single seller, no close substitutes, price control, difficulty of entering the market, and no distinction between firm and industry. However, two features of great importance in understanding the mechanism behind an idea of monopoly are described as follows. Monopoly is characterized by one company, which adjusts its supply to influence the price and, thus, maximize its profits. Second, control over the price setting. The monopolist can exercise price discrimination and fix different prices for different consumers. As mentioned

ECO204 Week 3 Discussion 1Let’s assume that you own a fast food restaurant and you are faced with many customers each day eating in the restaurant without any tables. Describe the difference between the short run andlong run in the example to bringing about more tables for the customers. How is the restaurant able to differentiate between the short run and long run?As a restaurant owner my main concern is bringing in profit, as well as keeping customers happy.In a case where we are unable to satisfy all customers because we have a lack of tables, decisionsneed to be made quickly in efforts to solve this problem. For a quick fix we need to focus on short run options that we can adjust variable inputs. “Variable inputs are the productive resources that can be increased or decreased in the short run….. In this context, the short run is the period of time that is too short to vary all the inputs; one or more of the inputs must remain fixed.” (Amacher, R., & Pate, J. (2013) Section 7.4) By


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