Economics Case Studies Market and Business Structures Case Study #1- Read the scenario and answer the questions below. You're 20 years old and you work as an assistant manager at the store Forever 21. You've just learned that your location is closing soon. The large store has the very best location at the mall so you're more confused than angry. Your thinking about getting a job at a different department store but you decide to research the fashion retail market first. You came across two different articles that are helping you figure out what's going on in this market. USA Today - "Forever 21 filed for bankruptcy protection in late September after being hobbled by expensive leases, declining mall traffic, digital competition, and fashion choices that fell flat" The New York Times - "Forever 21 said that it would file for bankruptcy, a sign of the eroding power of shopping malls and the shifting tastes of young consumers... underperforming stores were likely located in lower-quality malls and those that had lost other bankrupt retailers, like Sears." 1. Is the fashion retail market perfectly competitive, monopolistically competitive, or an oligopoly? How can you tell? 2. What happened in the retail apparel market that lead to the decline of Forever 21?How could having the very best location in the mall have actually hurt your store? Your friend said that now is the best time to open your own retail store now that Forever 21 is closing. Would it be relatively easy or relatively hard to enter the apparel retailer market? Why? If you did open your own store what would you do differently than Forever 21? Why? The stores in the mail that sell smartphones are always busy. Is the smartphone market monopolistically competitive, an oligopoly, or a monopoly? How can you tell? Your uncle owns the only kiosk at the mall that offers one hour smartphone screen repairs. Are his prices higher or lower than his online competitors that require customers to mail in their damaged phones? Why? Will your uncle's business be drastically affected by the closing of your Forever 21 store? Why or why not