Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hi I need to rephrase these paragraphs to avoid any similarly: There are four large pizza chains that make up the quick service pizza market:

Hi

I need to rephrase these paragraphs to avoid any similarly:

There are four large pizza chains that make up the quick service pizza market: Domino's, Pizza Hut, Papa John's, and Little Caesar's. Independent pizza shops make up a majority of the market and the remainder are smaller pizza chains. Pizza Hut has the greatest market share of any of the pizza chains and Domino's is approximately five percent behind. Domino's increased its market share every year in the past five years. Little Caesar's has also increased its market share every year over the past five years and could soon catch up to Domino's. In fact, Domino's and Little Caesar's were the only two major chains to increase their market shares in 2014. Independent pizza shops once made up more than half of the pizza market share. Since then, large pizza chains have gained momentum and independent chains now make up nearly forty percent of the market (Domino's; Yum! Brands; Papa John's; Little Caesars; QSR).

The quick service pizza industry has few barriers to entry. New firms might have a difficult time entering the market because existing firms are earning economic profits. One barrier is economies of scale. Large pizza chains have significantly lower average costs than smaller pizza shops. Large pizza chains have supply centers where all the ingredients needed are prepared such as dough for pizzas, precut vegetables, and premixed pizza sauce. This gives employees more time for other tasks which may reduce labor costs, and it reduces the costs for the ingredients.

Domino's Pizza has a monopolistically competitive market structure. A monopolistically competitive market structure has many firms selling products that are not identical and there are little to no barriers for new firms entering the industry. Domino's meets this criteria. There are a vast amount of pizza shops. The shops sell different kinds of pizza and other food. There are very few barriers to entry for new firms which makes the ease of entry high. The four-firm concentration is 38.95 percent because Pizza Hut, Domino's, Little Caesar's, and Papa John's made up 38.95 percent of the market.

------

thanks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Economy Of Cities

Authors: Jane Jacobs

1st Edition

039470584X, 9780394705842

More Books

Students also viewed these Economics questions

Question

What are the benefits of stratified sampling?

Answered: 1 week ago

Question

What courses do your students assist with teaching this semester?

Answered: 1 week ago