(Solution) ECON312N Week 4 Discussion: Market Concentration

COURSE  

 ECON312N Principles of Economics

Week 4 Discussion: Market Concentration of Firms and the Determination of Price and Output

Initial Post Instructions
Consider the following statement:

Firms in the healthcare industry do not seem to have features of a perfectly competitive market structure and, therefore, must not be classified as such. Those firms fall somewhere within the continuum from monopolistically competitive and oligopoly markets to monopoly markets (specifically regional monopolies).

For the initial post, decide if you agree or disagree with the statement.

  • If you agree with this statement, provide at least two examples of firms in the healthcare industry (pharmaceutical companies, medical centers, insurance companies, etc.), and identify the features the firms you selected have that make you believe that they should be classified in one or several of the following market structures: monopolistically competitive and oligopoly market structures; monopoly market structures.
  • If you disagree with the statement, name at least two firms in the healthcare industry (pharmaceutical companies, medical centers, insurance companies etc.), and provide reasons why those firms you selected can be classified as perfectly competitive firms.

Note: The two examples must come from different industry groups. For example, both firms cannot be insurance companies.

Follow-Up Post Instructions

Respond to at least one peer. Further the dialogue by providing more information and clarification.

SOLUTION  

A market structure is a specific term used to describe how easy or difficult it is for a firm to enter and the type of products that they sell (Greenlaw & Shapiro, 2017). The healthcare industry does not fall under a perfectly competitive market structure. In a perfect market firms sell identical products, buyers can buy and sell the product, relevant information is used to make rational decisions and firms can enter and leave the market without restrictions (Greenlaw & Shaprio, 2017).……please click the icon below to purchase full solution at $5