As an economic consultant for Lightning Volt Automotive, you are tasked with identifying the four different types of market structures and discussing the market structure that the firm is currently operating in and why. If Lightning Volt Automotive were fortunate enough to be the only domestic firm with a secure supply chain of semiconductor chips in the United States and globally, identify whether Lightning Volt Automotive would transform into another type of market structure and why. Since the federal government is enacting new policies to address climate change, explain how government policies could affect the sale and distribution of electric vehicles globally.

Instructions

Address the following in a Word document.

• Describe the four different types of market structures and their characteristics. Include relevant examples. Copy the table attached here into your Word document.
• Identify and explain the market structure Lightning Volt Automotive operates in.
• Discuss how Lightning Volt Automotive sets its prices in the market and how it determines the optimal number of vehicles to produce in the market.
• Explain how the U.S. federal government influences the sale of electric vehicles within our macroeconomy.

Market Structures	Characteristics	Examples