Question

Think of a good that you have recently purchased. Identify the market structure that the firm selling the good operates in. Describe the characteristics of the market structure.

Answer 1

I have recently purchased a coffee from Café coffee day.

The market structure the cafeteria has is monopolistic competition, As there are many firms in the market selling the coffee with little difference in the taste and service, goods are substitute of each other,

IN a monopolistic competitive market,there is a free entry and exit in the market, the firm makes zero economic profit in the long run and they have some control over the price and there goods are substitute of each other,