2. market structures

Question 1

firms objectives

Answer 1

-when biotechnology firms set out to fid a vaccine during the COVID-19 pandemic, Moderna sold theirs at the highest price out of all firms suggesting they had profit maximising intentions. however Pfizer sold theirs for free suggesting that they had ethical objectives
-in 2020, British Gas raised their minimum price for their gas-meter top ups with profit maximising intensions. however this caused backlash as many households then had to choose between ‘heating and eating’. the firm then returned to their original prices to maintain their market share

Question 2

perfect competition

Answer 2

agriculture

Question 3

monopolistic comp

Answer 3

fashion industry
due to technology advancing, many firms no longer have physical stores which lowered the barriers to entry as start up costs are so much lower. there are dominant firms such as Boohooman and ASOS who don’t have physical stores

Question 4

oligopoly

Answer 4

supermarkets
5 larger firms (Tescos, sainsburys,asda, Aldi and Morrisons) have over 70% market share. barriers to entry like Tesco being accused of ‘land banking’, where they buy land (but have no intention to build on it) so that competitors don’t have space

Question 5

monopoly

Answer 5

-google with 87% market share
-Apple
power shown when the US capital building was raided in January 2021 and was organised on the app ‘Parler’ which was then banned on the apple store

Question 6

contestability

Answer 6

Googles Stadia joining the gaming industry (which is dominated by Microsofts xbox and Sony playstation) alowing you to download games from your phone