ECO 204: Market Structures
In an eight- to 10-page paper, describe each market structure (perfect competition, monopolistic competition, oligopoly, monopoly), provide a real-life example of each market, and respond to the following for each market structure:
- Indicate how high entry barriers into a market will influence:
- Long-run profitability of the firms
- Cost efficiency of the firms in the industry
- Likelihood that some inefficient firms will survive
- Incentive of entrepreneurs to develop substitutes for the product supplied by the firms
- Are competitive pressures present in markets with high barriers to entry? Explain.
- Describe which market structure you would prefer for selling products. Explain why and support your answer with the characteristics of that market.
- Describe which market structure you would prefer for buying products. Explain why and support your answer with the characteristics of that market.
- How does each market structure respond to price changes of the products that they sell? Explain whether each market structure will be selling elastic or inelastic products, and how this will affect the market price charged.
- How does the role of the government affect each market structure’s ability to price their products?
- How does international trade affect each market structure?
The Market Structures Final Paper
- Must be eight to 10 double-spaced pages in length (not including title and references pages) and formatted according to APA style.
- Must include a separate title page with the following:
- Title of paper
- Student’s name
- Course name and number
- Instructor’s name
- Date submitted
- Must use at least five scholarly sources.
- Must document all sources in APA style.
- Must include a separate references page that is formatted according to APA style.
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Introduction
In the industrial sector we find companies that make different types of products as well as companies that are making similar products. These individual companies come together and form different types of market structures. Each of the market structures has its own characteristics and this is mainly because of the way they compete or the rules that have been implemented regarding operations within the structures. Currently we have four basic market structures and we are going to look at each structure and the unique characteristics associated with them. The following are the different types of market structures and their characteristics.
Types of market structures
Perfect Competition
The first market structure we shall look at is the perfect competition market structure. This is a structure where there are…..
APA
3103 words