Question

Identify Target market structure (i.e., perfect competition, monopolistic competition, oligopoly, and monopoly), explaining your reasoning.

Answer 1

It shall be noted that the Target company has an Oligopoly market structure.

Its main competitor is Walmart company.

Target sells differentiated or homogeneous products.

It focusses on advertisements and brand-building. It projects itself as a one-stop solution for the best of the discount world and fashion world selling quality merchandise at discount prices

S.No #	Characteristics	Oligopoly
1	Number of firms	Few - Target Company, Walmart Company, Amazon, eBay
2	Freedom of entry	Restricted
3	Nature of Product	Differentiated or Homogeneous
4	Implications for demand curve	Downward sloping, relatively inelastic
5	Average size of the firms	Large
6	Possible consumer demand	Inelastic
7	Profit making possibility	Losses to Normal Profit to Economic Profit in Short-run and Long-run
8	Government intervention	Moderate to Highly
9	Example	Computers
10	Control over Price	Significant control