Question

i would like to do grocery stores

Initial Response: Choose a product or service that you are familiar with something you use or have used, something related to a job you or someone close to you has held, etc.). Are there a lot or few firms in the industry? Are the products similar or identical or without close substitutes? Are there barriers to entry and, if so, what are they? Note: You will not see other students responses until you post your own Contribution to Discussion: Choose a student response (one with no replies) and answer these questions about their product or service. What do the student's responses tell you about the what does the product's market structure suggest for a typical firm selling this product?

Answer 1

Answer - The market structure that the grocery stores comprises is the Perfectly Competititive Market. In the grocery market , there are huge number of sellers in the market. The products sold by these sellers are the perfect substitutes of each other. Due to this factor , price discrimination cannot be done. As soon as profits arise in this market , new firms enter. So there are no barriers to the entry and exit of firms

So , with the large number of sellers , perfectly substitute goods, uniform prices and the freedom of entry and exit makes this market the perfectly competitive market.