ECO560 - Assignment

(a) What are the common barriers faced by firms who wish to join this industry? Give four (4) types of common barriers. (b) In which type of market structure do you think travel and transportation firms are operating? Support your answer by giving four (4) main characteristics of this market structure. (c) Identify the types of market structure in which the food and beverages industry is operating. Briefly discuss two (2) characteristics of this market structure. (d) Describe using an example why a hotel chain is considered as a firm in the oligopoly market structure. How is price determined in this market? (e) Firms in the competitive market will experience adjustments to the economic profits or economic losses that they earn in the short run. Explain how firms in this market structure can only earn normal profits in the long run.

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