Differentiating Between Market Structures
You will apply important microeconomics concepts toward the competitive strategies of an organization that operates in an industry of your choice. You will evaluate the differences between market structures and identify a group of competitive strategies consistent with the market structure that best aligns with the market in which the organization competes.
You will assess how the market structure positively and negatively affects the organization's ability to earn an economic profit over time and evaluate the effectiveness of the organization's competitive strategies.
Select an industry. Identify an organization in that industry. Your selected organization must be submitted for instructor approval.
Identify the market structure in which this organization competes. Clearly indicate why the market structure was decided upon and how this market structure differentiates from the other alternatives.
Describe the level of competition the organization will face if under each of the following market structures:
Oligopoly
Perfect competition
Monopoly
Monopolistic competition
Identify three or more competitive strategies of your choice that may be used by the organization to maximize its profits over the long run. Evaluate the effectiveness of these strategies in the market structure you identified. Consider the following:
Expected changes in supply and demand
Price elasticity of demand
Market structure
Government regulations
Make recommendations related to the strategies the organization might consider to maximize its profits and consider the following:
What are the ethical implications of these strategies?
Does this strategy align with the organization's current values?
Does this strategy align with your own values?