Question

DB: Market Structure Examples

This is the Discussion Board assignment for Unit #12. You will need to post your own response, and provide at least one thoughtful response to another student's post in order to receive full credit. For this Discussion Board, I'd like you to pick two of the four market structures covered in this Unit (perfect competition, monopoly, monopolistic competition, or oligopoly). For each of the two structures that you choose, I want you to provide one new example of a product (good or service) that is sold in a market that has that structure. Again, this should be a new example, not one that is from the readings, etc. You should provide a very brief defense of your choice.

So you need two examples, from two different market structures.

Answer 1

I would like to select two market strucutres: (Please select any two and submit)

1. Example of monopolistic competition: hairdressing salon, resaturant food.

reason: a hairdressing salon or a restaurant provides differentiated services to its customers. There are many barbers/ restauranteurs in the market , and they do not face problems of entry or exit.

2. Example of perfect competition: agricultural products like maize, wheat, potato, etc.

reason: agricutural products are known by their generic names. Their price is determined by market forces. Consumers know these prices.

3. Example of oligopoly: Nike shoes, aerated beverages (Coke, Pepsi)

reason: These companies control the market. Entry by new players is restricted because of the market power wielded by these companies.

4. Example of monopoly: water, natural gas, telecommunications

reason: Monopoly for these companies was created by government actions. No one else can enter the market due to natural monopoly or otherwise enjoyed by them.