Question

1. What is an industry that has only one significant supplier? What is the nature of the product? How easy would it be to start a similar firm or stop offering the product/service? How easy is it to attain information about the industry or product or service?

2. Are there any products that are sold in a market in which the seller is able to charge different prices to different consumers? How are the sellers able to do this?

3. Suppose you own one of two gas stations in a town of 5,000. The two gas stations are right across the street from each other. How would you react to changes in your competitors prices? What would cause you to increase or decrease prices? How would you get more business? Would your pricing strategy change if you were friends with the owner of the other station?

4. Can you think of an industry that is dominated by only 2-3 firms? What is the nature of the product? Would it be easy to begin offering the product or service? Do you feel that the prices of the products they are offering are fair?

Answer 1

1. An industry which will significantly have one supplier is the organization that is into currency making. This is one of the verticals of print media wherein there will be only one supplier. This organization will be a government run organization and will have zero competitors. It is not possible to start a similar firm as it cones under the direct supervision of the president and the Reserve Bank. It is impossible to stop offering this service as it is related to cash inflows, outflows and economy. It is completely impossible to gather information about the industry, product or service.