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Market Structures

Most European countries have nationalized their universities and colleges. Consider that some countries have also used the law to ban private colleges. Should higher education be classified as a natural monopoly in these European countries? Explain and justify your answer and use appropriate examples to support your conclusions.

Next, consider the case of several large, established pharmaceutical manufacturers such as Merck. What type of market form do you believe that such manufacturers operate under?

Jjustify your answers and use appropriate examples to support your conclusions. Quotations, paraphrases, and ideas you get from books or other sources of information should be cited using APA style. Help with citing sources can be found through the Academic Resources page under Course Home.

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Market Structures


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Market Structures

Market Structures

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?
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