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ECO 365 Week 2 DQ 1 What are economic profit-maximizing strategies that may be made by a perfectly

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What conditions exist when economic profits are maximized? What is the difference
between economic and accounting profits? What are economic profit-maximizing strategies
that may be made by a perfectly competitive firm, a monopolist firm, and a monopolistic
competitive firm? Provide examples and explain the strategies’ effectiveness in their
respective market structures.
When economic profits are maximized the conditions that exist would be where the firm
produces marginal cost equal to the marginal revenue equal to price.
The difference between economic and accounting profits would be that economist utilizes both
implicit costs in their calculations, while accountants use only explicit costs, or costs that can be
specifically accounted for on paper. The implicit costs that economics use include speculative
implicit cost like the cost of opportunity lost. this makes the costs listed using the additional
costs higher when reported in economics than those reported in accounting.
I believe the perfect competition and monopolist competition uses many sellers to accomplish
the most economic profit-maximizing. Perfect competition focuses on a uniformed composition
type product, where monopolistic competition focuses on different forms of products. Both use
no barriers of entry hoping to prevent other firms from entering the industries. a monopoly firm
has only one seller and strategies with one unique product. with a strategy of the pricing levels
for the product to maximize profit.

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