Question

Based on your understanding of market structures as discussed in the textbook locate a current article that describes an industry/firm as an example of one of the four market structures. Write a post explaining how the conditions described in the article aligns with the characteristics of a particular market structure. Be sure to cite your reference

Answer 1

Operating system for PC is an perfect example for oligopoly market structure.

In an oligopoly market there will be a few firms who produce goods and these few firms dominate the market. New entrants cannot enter the market due to high barriers of entry. Prices in the market are interdependent on other firms.

In operating system there are few firms and out of them the major players are Microsoft and Apple where these two firms are capturing the entire market. No new entrants cannot enter the market due to the high barriers of entry these two firms have created. Price of the operating system are decided by their companies basing on each other. Their products are identical and different in nature.

So Operating system have the perfect oligopoly market structure.