Question

What type of Market structure does Burger King belongs to? Why did you choose that particular...

What type of Market structure does Burger King belongs to? Why did you choose that particular structure for Burger King?

If Burger King decides to offer a new steak sandwich that generates a significant amount of sales very quickly, what would be its competitors response? Why?

Based on your analysis of competitors response, what would happened to Burger King's economic profit in the long-run? Why?

Business   Economics   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Burger King belongs to an oligopolistic market structure. This is because it has a few major competitors in the market like Mcdonalds, Dominos and Wimpys where they occupy a large section of the market share. In case a new product like a steak sandwich is introduced by Burger King, then the other competitors like Wimpys will introduce some variant of the same product into the market as they have to remain competitive. They will price it around the same and also inroduce some additional frills to gain more market share. In such a market the economic profit of Burger King will be eroded to a certain extent as some more major competitive players come into the market but they will still have positive economic profit as it possesses a certain degree of market power. This is the characteristic of a oligopolistic market structure.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Chick-fil-A is dominating the U.S. fast-food market. Whereas McDonald’s, Subway, Burger King, and Taco Bell trudge...
Chick-fil-A is dominating the U.S. fast-food market. Whereas McDonald’s, Subway, Burger King, and Taco Bell trudge along at the top of the heap, Chick-fil-A has quietly risen from a South- east regional favorite to become the largest chicken chain and the eighth-largest quick-service food purveyor in the country. The chain sells significantly more food per restaurant than any of its competitors—twice that of Taco Bell or Wendy’s and more than three times what the KFC Colonel fries up. And it...
Moore Plumbing Supply Company Capital Structure Mort Moore founded Moore Plumbing Supply after returning from duty...
Moore Plumbing Supply Company Capital Structure Mort Moore founded Moore Plumbing Supply after returning from duty in the South Pacific during World War II. Before joining the armed forces, he had worked for a locally owned plumbing company and wanted to continue with that type of work once the war effort was over. Shortly after returning to his hometown of Minneapolis, Minnesota, he became aware of an unprecedented construction boom. Returning soldiers needed new housing as they started families and...
What strategy would you recommend for Dove (1) in responding (or in not responding) to consumers...
What strategy would you recommend for Dove (1) in responding (or in not responding) to consumers and (2) going forward (or not going forward) with the campaign? If they were to go forward with this campaign, should Dove revise its Real Beauty message and if, so, how? The Dove Real Beauty Campaign In 2004, with sales at approximately $2.5 billion, Dove saw an opportunity to tap into women’s self-perceptions of beauty to address female insecurities while building a connection between...
Actually a HISTORY question: what tactics does Einhard use to portray Charlemagne in "Life of Charlemagne"...
Actually a HISTORY question: what tactics does Einhard use to portray Charlemagne in "Life of Charlemagne" and what tactics does Procipius use to describe Justinian in a positive light in the "Nika Riots"? Ive posted both excerpts. "Life of Charlemagne" Charles the Great, (Charlemagne in French) reigned 768-814 as king of the Franks and the most important ruler of the Carolingian Dynasty, conquering lands in what is now Germany, France, Spain, and Italy. On Christmas Day 800 C.E., Pope Leo...
1-How important do you believe it is to be task-oriented and relationship-orientated? How would you describe...
1-How important do you believe it is to be task-oriented and relationship-orientated? How would you describe Musk? 2-Why do you think Musk is successful in overcoming obstacles and handling conflict? How do you overcome obstacles in influencing individuals in your life? 3-Besides the personality traits given in chapter 2, what other traits attribute to a great leader? Recognizing Your Traits The definition of intelligence is the ability to acquire and apply knowledge and skills. Elon Musk knew little about rockets...
In February 2012, the Pepsi Next product was launched into the US market. This case study...
In February 2012, the Pepsi Next product was launched into the US market. This case study provides students with an interesting insight into PepsiCo’s new product process and some of the challenging decisions that they faced along the way. Pepsi Next Case Study Introduction Pepsi Next was launched by PepsiCo into the US market in February 2012, and has since been rolled out to various international markets (for instance, it was launched in Australia in September 2012). The new product...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From...
Sign In INNOVATION Deep Change: How Operational Innovation Can Transform Your Company by Michael Hammer From the April 2004 Issue Save Share 8.95 In 1991, Progressive Insurance, an automobile insurer based in Mayfield Village, Ohio, had approximately $1.3 billion in sales. By 2002, that figure had grown to $9.5 billion. What fashionable strategies did Progressive employ to achieve sevenfold growth in just over a decade? Was it positioned in a high-growth industry? Hardly. Auto insurance is a mature, 100-year-old industry...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Read the attached articles about the proposed merger of Xerox and Fujifilm. Utilizing your knowledge of...
Read the attached articles about the proposed merger of Xerox and Fujifilm. Utilizing your knowledge of external and internal analysis, business and corporate strategy, and corporate governance, please discuss the following questions: 1. What is the corporate strategy behind the merger of Xerox and Fujifilm? 2. Why did Xerox agree to the merger? Is this a good deal for Xerox? Discuss the benefits and challenges they face with the merger. 3. Why did Fujifilm agree to the merger? Discuss the...
What role could the governance of ethics have played if it had been in existence in...
What role could the governance of ethics have played if it had been in existence in the organization? Assess the leadership of Enron from an ethical perspective. THE FALL OF ENRON: A STAKEHOLDER FAILURE Once upon a time, there was a gleaming headquarters office tower in Houston, with a giant tilted "£"' in front, slowly revolving in the Texas sun. The Enron Corporation, which once ranked among the top Fortune 500 companies, collapsed in 2001 under a mountain of debt...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT