• Explain each of the three characteristics of a market structure and how the market/industry you chose relates to each of these characteristics.
  • Remember, all Market Structures are defined by these three criteria:
    • # of Firms
    • Similarity of Products
    • Ease of Entry & Exit
• Then make a conclusion about which type of market structure your industry fits best.
• In addition to the above, explain why this industry is an example of market failure.

Paper Guidance:

An industry is nothing more than a grouping or classification of similar types of good or service providers. Many companies that offer a similar product or service are usually grouped into an industry (an industry is not one company). Sometimes an industry is called a market in economics, although a market can be as large as a whole industry or as small as an individual business, but don't get too stuck on that.

To identify an industry, you may want to begin your search with a company or business that you're familiar with. From there, identify the industry it is a member of and focus your paper on the market structure of the industry. For example, if you began your search with McDonald's (this is not the industry but a business within an industry/market), then the industry would be Food Service, or more specifically, the Fast-Food industry. Depending on how broad or narrow the market is, will influence what type of market structure it may be.