Economics

commercialise Structure refers to the number and relative size of it of firms in an industry. Each industry is different and has unique marks. There atomic number 18 many levels of commercialize structure between a short rivalrous and an im suddenly competitive commercialize. A grocery in which a a few(prenominal) firms produce all or approximately of the market supply of a particular good or service is called an oligopoly. There are five specific market structures used to describe a firms market structure. There are unique characteristics that differentiate an oligopoly from a perfectly competitive market, a monopoly, a duopoly, and a monopolistically competitive market.

aft(prenominal) analyzing the candy market, Hersheys chocolate in particular, it can be concluded that the company fits the definition of an oligopoly. One defining characteristic is that the candy industry is dominated by only a few firms unlike a perfectly competitive market that consists of a very large number of firms, a monopolistically competitive market that consists of many firms, a duopoly that consists of two firms, and a original monopoly that consists of one firm. Two firms make up the majority of the market. deflower and Hershey produce seventy five percent of the market output. Market power increases if there are fewer firms in the market, which is the ending for every company.



A concentration ratio is the proportion of rack up output produced by the largest firms. A concentration ratio of threescore or more qualifies an industry as an oligopoly. A high-pitched concentration ratio does not necessarily imply the size of the firm though.

Because there are only a few firms in an oligopoly, there must be barriers to entry or else other companies would enter the market to follow above median(prenominal) profits. Barriers to entry are obstacles that make it difficult for a manufacturer to enter a market. Some examples of barriers to entry include patents, political relation regulations, and non-price competition. Non-price competition is a very unique characteristic...If you want to get a full essay, order it on our website: Orderessay



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