Market Structures, describe each market structure (perfect competition, monopolistic competition, oligopoly, monopoly), provide a real life example of each market, and respond to the following questions for each market structure:
1) How will high entry barriers into a market influence the:
Long-run profitability of the firms
Cost efficiency of the firms in the industry
Likelihood that some inefficient firms will survive
Incentive of entrepreneurs to develop substitutes for the product supplied by the firms?
2) Are competitive pressures present in markets with high barriers to entry? Explain.
3) Describe which market structure you would prefer for selling products. Explain why and support your answer with the characteristics of that market.
4) Describe which market structure you would prefer for buying products. Explain why and support your answer with the characteristics of that market.
5) Does the government affect product pricing in each of the market structures?
6) How does international trade affect each of the market structures?