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Part 1: Using the provided table that outlined the various characteristics of each market structure type and the information provided by ManagerTracy frorn Ruby Red

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Part 1: Using the provided table that outlined the various characteristics of each market structure type and the information provided by ManagerTracy frorn Ruby Red Movie Theater, dene the market structure {perfectly competitive, monopolisticallyr competitive, oligopoly, or monopolvl for the movie theater market of this tovvn. Discuss each market structure characteristic as it either relates or does not relate to the movie theater market for this town. Make sure you address all four market structures and each market structure characteristic in your discussion. If you need additional space, please feel free to insert an additional page. Answer: From d'tE market characteristics, the movie market in d'Lis town can be characterized as an oligopolistic market. This is because there are only four firms that compete in d'lis market. There is also no room for the entry of ordter companies as the city has banned other companies' entrance in a similar market Simultaneously, although all the companies are into the movie business, they find ways of differentiating their products. This is achieved through the different opening and closing hours and other ticket prices. The firms are also average in site because it is only four companies that operate in the market. Therefore, they serve the city people in ensuring they access entertainment. The barriers to entry and exit and exit in this market are high. This is first due to the regulations set by the city, making it impossible for od'ter companies in this industry to come in. at the same time, this aspect ensures that the companies experience protability. This is the reason why the exit barriers are high. This market is also the price maker since all the companies can set prices and compete. However, this market is not perfect because such a market is vast, and many players sell the same products. This means that the firms that arise are small, and hence profitability is small. This is most especially because the firms are price takers and are therefore unable to set prices that can help make profits. This market is also not monopolistic competition because it has fevt.r firms. Monopolistic competition markets have many firms hence the size of each is small with lower profits. [rt the long-um economic profits do not exist. However, it contains differentiated products, and the firms are price makers, just like in an oligopolistic market. The market is also not monopolistic because there is more than one firm. The products are also similar; hence there are close substitutes. However, the market has some similar characteristics, such as high entry barriers and exit and the fact that they are price makers irt monopolies

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