EXERCISE - MARKET STRUCTURE

Instructions:

Read each situation and determine the following:

• Classify the Market Structure where each situation is found.
• Mention two characteristics for which you selected the Market Structure.

Below are the situations:

1) You are the owner of a firm dedicated to the production of luxury shoes and you receive an invitation from country "Y" to establish your firm in said country. In the meetings agreed with the government, it is found that they will issue a law where they grant the absolute rights to produce this type of shoes as long as 30% of the firm's employees come from the domestic sector. Additionally, you receive a preferential rate of 12% on contributions after operating expenses. The Gross Domestic Product (GDP) has had a constant growth of 3.8% and the inflation rate has been without significant growth for the last five years.

2) You run a firm dedicated to the underwater subtraction of a stone that, when mixed with copper, results in a product with greater energy durability. This stone is only found in various parts of the world, where there are around 10 companies in the world dedicated to this activity. To regulate prices worldwide, the 10 firms agree to associate to establish prices on the world market and be able to determine production when macroeconomic situations require it.

3) You are the owner of a bus dedicated to the sale of ice cream located in recreational parks. By analyzing market opportunities, he understands that he can develop a new flavor by mixing china, tamarind and strawberry ice cream. They want to sell this new flavor near schools and work offices in addition to recreational parks. You also implement a delivery service to homes or work offices adjacent to the schools or recreational parks where it is established.

4) You, studying market opportunities, understand that the corn industry has a positive performance over the last 7 years, and decide to invest in this industry. So what is necessary to start the business that includes but is not limited to the necessary documentation requested by the government, purchase of land, seeds and insurance among others. You begin to operate and the sales price is already established so you work with cost minimization to be more effective, resulting in an increase in profit through volume sales and distribution.