Question

Make each awswer as long as you can i would like most infomation you know anout 1-5 thank you

Explain the following for each market structure example:
1. Why do you think each firm would be operating in that market structure? Justify your answer.
2. Would the different firms have market power or would they be price takers?
3. How is market structure determined?
4. How much product differentiation would each firm/industry use to market their product?
5. In which market structure would firms experience the lowest overall profits? the highest?

Answer 1

2. in monopoly market firms have market power. and perfect competition firms have price

3. the market structure is determined on the basis of number of sellers available in the market.

4. prodcut differentiation policy is benificial up to maximum profit level of the firm under the monopolistic competition.

5. Firms under the perfect competitoin experienced the lowest overall profits. on the other hand firm under the monopoly experienced the highest level of profit.