Question

what market stricture does Apple belong to? Justify your statement by describing each of the criteria used to identify markets.

Answer 1

Apple has its presence in two different markets . One is mobile phones and the other is in tablets and computers (MacBook).

In the market of phones, it is considered an oligopoly.

Oligopoly is the market which has sellers ranging from 2-10, each of the seller having a prominent share in the market. In mobile phone market , there are a few companies which are prominent in the market including apple, samsung . Since there are high barriers in the market due to increased investments and not a very large number of sellers , it is an oligopoly market .in this case , there exists non price competition between the sellers ie apple launching a new variant or an additional feature of phones in market would be a non price competition.

Computer market where also apple exists is monopolistic competition. In these types of market , the number of sellers are huge and the sellers are differentiated by brands . In such a case the share of each seller is small and the consumers perceive a non price competition.

In is case also if the firms are earning supernormal profits like perfect competition, the new firms enter and if there are losses , the firms tend to exit.

So both the markets in which apple exists are explained above

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