QUESTION 3

In recent years bubble tea has become a craze among Singaporean consumers, leading to

many new firms entering this market either as new Singaporean startups or as established

firms from aboard. There are now over 50 competitors in Singapore each of which sell their

own variations of bubble tea with different flavours, colours, ingredients and packaging. Using

the theory and models of market structure, examine this industry. Should government be

worried about any aspect of how an industry with this market structure will perform?