Read the extract below and answer the questions that follow: Hiking Footwear Market Share, Size, Industry Report, Key Player, Major Segments, and Forecast The hiking footwear market is expanding as hiking becomes more and more popular as a leisure activity that has numerous health benefits, including enhanced cardiorespiratory fitness, lowered blood pressure, and a decreased risk of heart disease. There is steady expansion in the market due to the availability of various types of hiking footwear, including heavy hiking boots, trail runners, light hiking boots and trail shoes, as well as their importance in facilitating a comfortable hiking experience and lowering the risk of an ankle injury. The growth of the market for hiking footwear is being greatly accelerated by its unique qualities, such as extended durability, lightweight design, and flexibility. The hiking footwear market growth is also being significantly influenced by government programmes to encourage environmentally friendly travel and physical activity among the populace. Over the course of the projection period, it is predicted that the market will be stimulated by market participants' efforts to create new items of exceptional quality that fulfil consumer expectations. Source: https://www.digitaljournal.com/pr/global-hiking-footwear-market-size-to-grow-at-a-cagr-of-3- 30-until-2027#ixzz7fMHuMWnC

1.1. There has been considerable expansion in the hiking footwear market. Discuss some of the possible factors contributing to that expansion. (15)

1.2. Speculate, giving examples, the various short-run costs that producers may face in this industry. (15) 1.3. Taking into consideration the characteristics of the hiking footwear industry, identify and analyse the type of market structure. Comment on the efficiency and profitability of firms operating in such a market. (20)