Directions: Read the descriptions of the businesses provided. Examine each description, decide which market structure best represents the company, and then justify your choice. 1. Josan's Salmon Supplier sells fresh salmon to local seafood restaurants. Every morning Josan sails out to sea to catch salmon, and each afternoon he returns to sell his catch to local restaurants. There are hundreds of other fishers catching and selling salmon. Josan cannot raise his price because the salmon he catches is identical to the salmon caught by the other fishermen. Type of Market structure: Reason: 2. Sardis Cable supplies cable access to all residents. It was a very expensive business to start. The entrepreneurs who started Cable had to provide underground wire for the entire community. Other companies tried to compete, but the start-up costs were simply too high. Type of Market structure: Reason: 3. M & H Soups produces a variety of soups. There is considerable competition in the soup market. However, M & H Soups has spent several million dollars on an advertising campaign to convince consumers that their soups are healthier than all other soups. Because of this advertising, M & H Soups charges a higher price than other soups on the market. Type of Market structure: Reason:
Directions: Read the descriptions of the businesses provided. Examine each description, decide which market structure best represents the company, and then justify your choice. 1. Josan's Salmon Supplier sells fresh salmon to local seafood restaurants. Every morning Josan sails out to sea to catch salmon, and each afternoon he returns to sell his catch to local restaurants. There are hundreds of other fishers catching and selling salmon. Josan cannot raise his price because the salmon he catches is identical to the salmon caught by the other fishermen. Type of Market structure: Reason: 2. Sardis Cable supplies cable access to all residents. It was a very expensive business to start. The entrepreneurs who started Cable had to provide underground wire for the entire community. Other companies tried to compete, but the start-up costs were simply too high. Type of Market structure: Reason: 3. M & H Soups produces a variety of soups. There is considerable competition in the soup market. However, M & H Soups has spent several million dollars on an advertising campaign to convince consumers that their soups are healthier than all other soups. Because of this advertising, M & H Soups charges a higher price than other soups on the market. Type of Market structure: Reason:
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
Answer asap please
Transcribed Image Text:Directions: Read the descriptions of the businesses provided. Examine each description, decide which market
structure best represents the company, and then justify your choice.
1. Josan's Salmon Supplier sells fresh salmon to local seafood restaurants. Every morning Josan sails out to sea
to catch salmon, and each afternoon he returns to sell his catch to local restaurants. There are hundreds of
other fishers catching and selling salmon. Josan cannot raise his price because the salmon he catches is identical
to the salmon caught by the other fishermen.
Type of Market structure:
Reason:
2. Sardis Cable supplies cable access to all residents. It was a very expensive business to start. The
entrepreneurs who started Cable had to provide underground wire for the entire community. Other companies
tried to compete, but the start-up costs were simply too high.
Type of Market structure:
Reason:
3. M & H Soups produces a variety of soups. There is considerable competition in the soup market. However, M
& H Soups has spent several million dollars on an advertising campaign to convince consumers that their soups
are healthier than all other soups. Because of this advertising, M & H Soups charges a higher price than other
soups on the market.
Type of Market structure:
Reason:
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 5 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (12th Edition)
Economics
ISBN:
9780134078779
Author:
Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:
PEARSON
Engineering Economy (17th Edition)
Economics
ISBN:
9780134870069
Author:
William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:
PEARSON
Principles of Economics (MindTap Course List)
Economics
ISBN:
9781305585126
Author:
N. Gregory Mankiw
Publisher:
Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:
9781337106665
Author:
Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:
Cengage Learning
Managerial Economics & Business Strategy (Mcgraw-…
Economics
ISBN:
9781259290619
Author:
Michael Baye, Jeff Prince
Publisher:
McGraw-Hill Education