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This week we are looking at industries. For example, automobiles are a product produced collective by firms in the auto industry. The elasticity of a firm's demand curve depends on the type of market in which the firm operates. In the video, Sal at the Khan Academy, provides the keys to identifying the industry type: perfectly competitive; monopolistic competitive; oligopoly; or pure monopoly.
First, identify a firm with which you or your organization does business. Use the characteristics provided by Sal and explain if the firm is: perfectly competitive; monopolistic competitive; oligopoly; or pure monopoly.
Second, is the firm's demand curve relatively elastic or relatively inelastic? Explain how you arrive at this conclusion.
Third, how does elasticity effect the firm's control over its price?
Thinking about different markets that are in-between monopolies and perfect competition
https://www.khanacademy.org/economics-finan
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