Question

In what market structure is Fabricated Metal product manufacturing in?

In what market structure is electronics and appliance store in?

Which one has the higher amount competition and higher market power?

Price elasticity demand?

Is it elastic? Inelastic?

Answer 1

Fabricated metal product manufacturing can be considered as a example for perfect competition because there are many factories which do the same and the product will be homogeneous which is a perfect featurer for perfect competitive market. Electronics and appliances come under the oligopoly industryand this is because of the fact that there cannot be many firms in the market and usually the products are differentiated. Usually electronics and appliances Store will be have high market power while fabricated metal product will have high competition. The price elasticity of demand is elastic in fabricated metal product because of high competition and availability of substitute but electronics and appliances store will be slightly inelastic.