BMW set to appoint 2nd S'pore dealer - tipped to be Eurokars German carmaker BMW is poised to appoint a second fully fledged dealer in Singapore in a move seen as fostering competition to boost sales. The current and only BMW dealer here is Performance Motors, which is owned by Malaysian conglomerate Sime Darby. Performance Motors has had the franchise since 1979. Extracted from The Straits Times, 12 May 2022

1) Identify the market structure for BMW cars in Singapore before the appointment of the second dealer (seller). Explain your answer. (2 marks)

2) State the barrier to entry existing in the market for BMW cars. (2 marks)