need help about the grammar of a microeconomics essay

Based on microeconomics, oligopoly means a market only has a few sellers, they are often protected by barriers to entry, there is some difference between product or standard. The sale of capital goods to other enterprise vendors usually is the production of standardized goods. Generally, only a few manufacturers to produce this product. More generally, oligopoly firms sell differentiated goods to consumers. A large number of advertising to induce consumers to believe that a lot of goods there is an important difference.

When one or a few large companies where the control of commodity production and circulation, you can through the exclusive monopoly or monopoly agreement, the commodity prices set much higher or lower than the value of the high or low price. Monopoly enterprise and organization of production or market manipulation, suppress competition, obtain excess profits by high prices, with low-cost competitor, the competitors out of the market. In order to avoid monopoly competition between each other, usually publicly or secretly negotiated pricing, so that they cost more than the free market price. The price of monopoly is a monopoly or organization in the market to determine the conditions under control. Because of monopoly or monopoly organization can not be indefinitely, a long period of time to raise or lower the price, therefore, they are taken to stabilize the price strategy, the marginal cost and marginal revenue equal as the pricing principle. When the decline in market demand, they would reduce the yield are reluctant to lower prices; and when the market demand rises, they generally by expanding the sales and not to obtain profits through price increases. Therefore, the monopoly price elasticity is very small, and the non monopoly price changes in supply and demand and competition with the frequent fluctuation in the opposite.

The company's monopoly behavior, reflects the importance of marginal principle. The Marginal Principle means that the optimal level of any activity is the point where marginal benefit equals marginal cost. that is to say we just let the last unit product cost is equal to the income, then we can realize the profit maximization. In other words, let bygones be past. Don't look back. Don't cry for spilled milk, not for the loss yesterday and lament. For any decision, you will pay for the cost of accurate calculation, and take it with you for increasing income balance. To make a decision according to the marginal cost and marginal revenue. This decision makes marginal principle has become one of the most inspirational tools in economics.

We can easily find the example that how marginal principle used in life. For example, in the consumer's income and fixed he faces various kinds of goods market under the condition of the fixed price, when the marginal utility cost in any of the items on the last dollar are exactly equal to the marginal utility cost in any other items on the last dollar obtained, the consumers will get the maximum satisfaction or utility.

While the other one will affect the oligopoly companies is the opportunity cost pricing principle. The Principle of Opportunity Costs is the opportunity cost of something is what you sacrifice to get it. that is to say, the opportunity cost is in the material, capital, labor utilization or production capacity at the same time, choose a scheme and give maximum benefits may obtain another feasible solution. The opportunity cost is not equal to the century costs, expenses or losses paid it not make a choice, but a concept of the cost or loss of opportunity cost, the significance is that it can enable enterprises to choose the best way of prudent management ways from various possible, in order to make full use of the limited resources of enterprises. In the oligopoly market, the market only a few powerful manufacturers, the price war and the phenomenon are some collusion bidding, pricing must consider the opponent's reaction time, the choice of a company can make their own maximum benefit plan.

We make so many choices everyday, each choice must face the opportunity cost. We go to the cinema is the opportunity cost of other things with the same amount of time and money can do value; part of the cost of university education is engaged in full-time work you can get income; if you want to do the housework today, there is no time to take the kids to the zoo, and this is the opportunity cost of doing housework, in making daily decisions, consider the opportunity cost is sometimes beneficial. When you want to make a choice, if a clear judgment which "better", we should not hesitate to make a choice. Even if the reason to choose only 51%, have to admit that the other 49% should give up. If give up the 49%, it will no longer be expended, but should go to all lengths, will select 51% to 100%.

This is what microeconomics can teach us. Microeconomics and not only affects the market and enterprises, and also affect our life, the real value of our.