Question

Identify and discuss two U.S. firms whose key characteristics align with your specific market structures. Determine the equilibrium point for each of your firm's market structures.

Identify oligopolistic market structures and monopolistic market structures.

Locate a recent article or event that highlights your relevant microeconomics topic. 

Answer 1

A) The two firms that are working under the Monopolistic structure of Market is

1) Apple: With a number of substitutes like Nokia and Samsung, the American mobile company is working in a monopolistic market structure which is an example. It gives its competitors a tough fight when it comes to technological as well as price struggle for the product.

Equilibrium : Apple gains profit and works at the equilibrium level when the average revenue is more than the marginal revenue and just above the point on Average revenue curve, at which the Marginal cost curve of the product it produces cuts the Marginal revenue curve of the firm.

2) Netflix : This firm is now turning into a Monopoly in the market of streaming movies. Now the people around the world have stopped using DVDs and prefer using this medium as a way to get entertainment sources. With very less such business working in the market, Netflix definitely has an upper hand.

Equilibrium : With a steeper Average and Marginal revenue curves, the equilibrium is also achieved when the Marginal Cost curve cuts the Marginal Revenue curve and slope of MC is more than MR.

Oligopoly : Oligopoly is a market structure where a number of small firms operate together in the market. The firms do not operate to keep each other from expanding their influence.The concentration ratio measures the market share of the largest firms. Oligopoly is referred to two or more firms.

Monopolistic: Monopolistic competition is characterized by an industry in which many firms offer products or services that are similar, but not perfect substitutes. The barriers to entry and exit in a monopolistic competitive industry are relatively flexible, and the decisions of any one firm do not directly affect those of its competitors.