Question

Which market model appears to Chinese cooking is the most popular food in America that is not dominated by big national chains. Chinese food is typically cooked in a wok that requires high heat and a special stove. Specialized chefs are also required. Small mom-and-pop restaurants comprise nearly all of the nation’s 36,000 Chinese restaurants, which have more locations than McDonald’s, Burger King, and Wendy’s combined. Please explain the behaviour described in more detail

Answer 1

ANSWER: Generally, an economic analysis of the different firms or industries within an economy is simplifies by first dividing them into different models based up on the amount of competition within the industry.

There are 4 basic market models. They are: Pure competition, Monopolistic competition, Oligopoly and finally pure monopoly.In this case we can say it as an instance of oligopoly is a market where its structure in which a few firms dominate. When a market is shared between a few firms, it is said to be highly concentrated. Eventhough only a few firmd dominate, it ispossible that many small firms also operate in the market.