Section II - Industry Market Structure

This section looks at how the market structure of your industry. Recall the market structures we saw are competitive market, monopolist, monopolistic competitor, and the oligopolist. Your market will more than likely be a monopolistic competitor or an oligopolist, but as you zoom in or out, you might see resemblance of a competitive market or a monopolist.

Questions to consider:

• What market structure best describes the market for your good?
  • Does this change if you close in on a certain area, or look at a bigger picture?
• What are the major firms in your industry or that produce your good?
• What does pricing, and profit margins, look like in this industry?

Section III - Industry Externalities

In this section, we will consider externalities that come about from your industry. The two types of externalities are positive and negative. For this section, you may need to think outside of the box a little bit.

Questions to consider:

• What externalities come from your good or industry?
  • Positive?
  • Negative?
• Does your industry face any regulations or subsidies to help with these externalities?