Critically analyze the advantages of the market structures

Reference no: EM132195873

Question: Industries can be classified under different market structures and this classification strongly dictates decisions made by managers within the market. For example, in an industry classified under perfect competition, or in a perfectly competitive market, many competitors offer the same product and entry into the industry is easy. In this market, the pressure to maintain the same prices as the competitors is high, which characterizes this market.

On the other extreme, some industries are classified as monopolies and some fall under monopolistic competition. In a monopoly, there is only one provider of a product or a service, which has an inelastic demand. In this case, there is little incentive for the monopoly to be efficient or price competitive. In a monopolistically competitive market, there are many firms selling a product or service that is only slightly differentiated from one another, and in the long term, these firms start showing characteristics of a perfectly competitive market.

Tasks: Find an article about an industry in the United States, such as the pharmaceutical industry. You can consult sources such as the Wall Street Journal, Financial Times,Bloomberg Markets, the Economist, US News and World Report, and other publications for your reference.

After reading the article, respond to the following:

• Identify the market structure that best characterizes the industry described in the article.

• Explain the factors you considered when identifying the market structure for this industry.

• Analyze whether this industry will work better if it changes its market strategy and starts showing characteristics of another market structure.

• Critically analyze the advantages and disadvantages of the market structures that you studied in the readings.

Submission Details: • By the due date assigned, post your responses in a minimum of 500 words to this Discussion Area. Support your assumptions with reputable source material.

• Through the end of the module, read and respond to at least two other classmates' posts. While responding, focus on market structures for the selected industries as well as analyses of advantages and disadvantages of other market structures.

Write your initial response in 300-500 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation.

Reference no: EM132195873

Questions Cloud

Identify the type i error for the test : Carter Motor Company's new sedan is less than 32 miles per gallon. Identify the type I error for the test.

Enforcement authority of three administrative agencies : Select and briefly describe the activities and enforcement authority of three administrative agencies.

What are the four basic functions of nonverbal cues : What are the four basic functions of nonverbal cues? Please provide detail examples of each. Evaluate McDonald’s international expansion strategy.

What qualifications do you have that align with their needs : How do you match up with what employers say they need? What qualifications do you have that align with their needs?

Critically analyze the advantages of the market structures : Identify the market structure that best characterizes the industry described in the article. Explain the factors you considered when identifying the market.

Elite burger-new product launch case scenario : Elite Burger: New Product Launch Case Scenario David Smith, a project manager at Elite Burger, was called into an executive meeting on short notice.

Identify the situation that is most likely to be covered : The federal portion of the unemployment compensation insurance program is administered by the Employment and Training Administration in the Department of Labor.

What is the meaning of a derived demand : The demand for labor is said to be a "derived" demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor?

Distinguish between the short-run and the long-run : Distinguish between the short-run and the long-run in a macroeconomic analysis. Why is the relationship between unemployment and inflation different.

User Account

All Pages