he Constant Fight for Profitability: Market Structure and Porter’s Five Forces
What is market structure and what is Porter’s Five Forces? Here is some help.
Monopolistic Competition: https://www.khanacademy.org/economics-finance-domain/ap-microeconomics/imperfect-competition/monopolistic-competition/v/monopolistic-competition-and-economic-profit
One way to measure the type of market is an index know as the Herfindahl Hirschman Index HHI. It is the official measure used to answer the first question in any anti trust case, is the firm sufficiently large in the industry to be a monopoly: https://www.justice.gov/atr/herfindahl-hirschman-index
Select a monopolistic competitive firm and an oligopoly firm. Then apply Porter’s five forces and compare:
1) What are the challenges to profits faced by each firm?
2) Which firm is likely to have a much higher rate of return? 3) What challenges to profits arise due to supply chain and intermediary consumers such as processors and distributors?
3) What challenges to profits arise due to supply chain and intermediary consumers such as processors and distributors?
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