Differentiating Between Market Structures

Differentiating Between Market Structures Table

Compare the four market structures by filling in the table.

Perfect competition Monopoly Monopolistic competition Oligopoly

Example organization Produce sellers U. S. Postal Service Cook's Pest Control Sony

Goods or services produced by the organization Fruits and vegetables Mail courier service Pest control services, termite control services Electronics (T.V.'s, gaming systems, etc.)

Barriers to entry Non-existent Legal restrictions Customer loyalty, quality service Brand name loyalty, money, technological innovation.

Number of organizations thousands 1 2 (largest competitor Terminix) Several (largest competitors are Panasonic, Toshiba, and LG)

Price elasticity of demand elastic inelastic elastic elastic

Is there a presence of economic profits? Yes No Yes Yes

Differentiating Between Market Structures

Kudler Find Foods specializes in gourmet food products. Kudler Fine Foods' mission states it is committed to providing patrons with the finest selection of the very best food and wines so that culinary visions may come true (Apollo Group, 2007, 2010, 2011). Gourmet food stores such as Kudler Fine Foods offer exceptional quality groceries that appeal to the amateur and professional chefs, and also to those that appreciate the finest choices of food. Patrons of Kudler Fine Foods pay a premium price for the products and services offered for such particular goods. Kudler Fine Foods' culture, management style, market structure, and performance must validate the corporate goals, thus ensuring success and distinguishing the store from competitors.

Determining market structure entails knowing rivaling companies, specifically their differences and similarities. Market structure characteristics affect the actions of businesses in their indicated market. Market structures shape outcomes of economic efficiency within the market. Aspects of market structure include the number of businesses in the competitive market, the market share, the extent of product differentiation, the price elasticity of demand for the product, and customer turnover.

Kudler Fine Foods' strategic plan identifies their main competition as multiple traditional supermarkets and a small number of health food stores within the surrounding area. The supermarkets offer similar products such as organic produce. However, Kudler Fine Foods differentiates its store focusing on a more affluent customer with a more discriminate flair for fine foods. Kudler Fine Foods sets itself apart from traditional supermarkets providing excellent customer service, the best foods,