Select one (1) of the market structures and identify two (2) products (not companies) that can be found in those structures. and justify the answer with a minimum, in one (1) paragraph of 5 to 6 sentences. Abounds in product features
Select one (1) of the market structures and identify two (2) products (not companies) that can be found in those structures. and justify the answer with a minimum, in one (1) paragraph of 5 to 6 sentences. Abounds in product features
The market structure is a monopoly
In Monopoly Single sellers and many buyers: Because there is a single seller, the seller has the right to make decisions over the price or the output. Barriers to entry and exit: Since there is a single seller, there are various barriers to exit which could be due to the monopoly of the firm over the resources or government protection, etc. The product is a monopoly because it has no close substitutes in the short run. The firm is earning supernormal profits in the short run. There is no difference between the firm and the industry and hence the industry and the firm is the price maker.
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