Clothing shops, drug stores, textile show rooms etc., could be categorised into a particular market structure. Discuss about the market structure with these examples. Highlight your view point with examples and data and compare the same with Indian Railways
6 Answers | Add Yours
I would agree that your smaller shops probably operate in an oligopolistic structure in that there are several sellers with some controp over prices. I would say that there are very few examples of perfect competition in todays business world.
Small shops like clothes and drug stores are in monopolistic competition -- lots of small firms selling similar products (but not identical, at least in people's minds) competing with one another.
I'm afraid I don't know what "show rooms" are for textiles.
Indian Railways is a monopoly because it has essentially no competitors.
Other market structures = oligopoly (a few large firms make up the industry) and perfect competiton (many small firms selling a homogeneous product).
How to get the data and compare the same with indian railways ??
i am not clear abt the data part..cud some one explain the data part and comarision part..
The concept of market structure is central to both economics and marketing. In decision-making analysis, market structure has an important role through its impact on the decision-making environment.Market structure is important in that it affects market outcomes through its impact on the motivations, opportunities and decisions of economic actors participating in the market. The characteristics of a market, including concentration (the number and size of distribution of firms), extent of product differentiation, entry conditions (including entry barriers), and degree of vertical integration.
Some small shops could enjoy monopolistic position because of a combination being the only shop easily accessible in a geographic location and because of their unique product range. However most of the retail shops for most of the products are more likely to experience oligopolistic competition with varying degree degree of intensity of competition and oligopolistic control over market supply and prices.
Indian railways is a true and very strong monopoly if we consider the product to be just rail transportation. However, if we define product as transportation in general, including road, air and water transportation then it will be appropriate to say that Indian Railways is operating in an oligopolistic market.
We’ve answered 318,914 questions. We can answer yours, too.Ask a question