[SOLUTION] Market Structure

It is traditional to divide industries into categories according to the degree of competition thatexists between the firms within the industry. There are four such categories. At one extreme is perfect competition, where there are very many firms competing. Each firm is so small relativeto the whole industry that it has no power to influence price. It is a price taker. At the other extreme is monopoly, where there is just one firm in the industry, and hence no competitionfrom within the industry. In the middle come monopolistic competition, which involves quite a lot of firms competing and where there is freedom for new firms to enter the industry, andoligopoly, which involves only a few firms and where entry of new firms is restricted.From the following market structures:OligopolyRequirements:For the market structure above, write a paper and make a 30 minutes presentation on:a. The definition of the structureb. Discuss the feature or characteristics of the structurec. Outline at least five (5) assumptions of each of the structured. State at least five (5) advantages and disadvantages of the chosen structuree. Outline at least five (5) barriers to entry for the chosen structuref. Explain how the structure operates in the short run and long rung. With the aid of a diagram explain how profits are maximized

 

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[SOLUTION] Market Structure
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