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Posted: April 10th, 2022
Discuss the market characteristics and market structure
You have been hired as a consultant by your local mayor to look at the various market structures. Your role is to provide analysis and answers to these important questions that will help the mayor understand the structures of many of the businesses in his city:
- Describe each market structure discussed in the course (perfect competition, monopolistic competition, oligopoly, and monopoly) and discuss two of the market characteristics of each market structure.
- Identify one real-life example of a market structure in your local city and relate your example to each of the characteristics of the market.
- Describe how high entry barriers into a market will influence long-run profitability of the firms.
- Explain the competitive pressures that are present in markets with high barriers to entry.
- Explain the price elasticity of demand in each market structure and its effect on pricing of its products in each market.
- Describe how the role of the government affects each market structure’s ability to price its products.
- Discuss the effect of international trade on each market structure
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