Pick any company or industry that you like and decide what type of industry the firm is in:

perfectly competitive, monopolistic competition, oligopoly or monopoly. You do not need to do research, although you certainly can (as in example below.) You should answer the following questions and base your decision on the characteristics of industries.

1. How many firms are there and is the industry concentrated?

2. Is the product standardized or differentiated?

3. Is there free entry or exit or are there barriers to entry. If there are barriers to entry, what are they?

Example

I choose Southwest Airlines, which is in the Aviation industry, specifically the domestic airline

industry. This industry is an oligopoly because:

1. In the U.S. there are many firms when you think about all the small airlines operating, but in

the U.S. the four largest (American, Delta, Southwest and United) control almost 67% of the

market (see table and source below).

2. The product is differentiated as consumers see different airlines offering different rides.

3. Yes, airline industry has many barriers to entry including economies of scale and hub

restrictions and fees put on by the airports.