For this next essay, you will be building upon your previous essay by continuing to examine other businesses in your chosen industry physician’s practice (clinic). Remember that the other businesses you wrote about in your previous essay will be your future competitors if you decide to open your own business. So it is important to get an idea of the competitive landscape of your chosen business. After reviewing the required background readings and doing some more research on your chosen industry, write a three-page paper discussing the following issues:
1.What market structure is there for this line of business in your home town? Is this a monopoly, oligopoly, monopolistic competition, or perfect competition? Justify your answer using both your own research on this type of business in your home town, and by referencing some of the required background readings on different types of market structures.
2.Now that you have examined market structure of your chosen industry in your home town, do some research on IBIS World on market structure in this industry nationwide. What information could you find regarding how concentrated or how competitive this industry is? Here is a link of the IBIS world report (use this report as part of your references)
3.Based on the information you found for Question 2, what market structure do you think best describes this industry nationwide? Is this a monopoly, oligopoly, monopolistic competition, or perfect competition? Explain your answer using both information from IBIS World and the concepts from the required background readings.
Some of the background reading are as follows:
Tabarrok, A. & Cowen, T. [Marginal Revolution University]. (2015, January 2). Introduction to the Competitive Firm.
Now read Chapters 9 and 10 from the following book for more detail on these topics. In particular, pay attention to the numerical examples and the “Self-Check Questions” at the end of each section.
Taylor, T. (2014) Microeconomics. OpenStax College.
Finally, read this slightly more advanced chapter. Pay special attention to the sections at the end on game theory and the “Policy Response to Oligopoly” section that covers the Herfindahl index:
Beveridge, T. M. (2013). Chapter 8: Between perfect competition and monopoly. A Primer on Microeconomics. [New York, N.Y.] [222 East 46th Street, New York, NY 10017]: Business Expert Press.