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U Mobile Stay Safe 46 MY MAXIS 77% D 11:32 [Template] TES... Q . . . ECONOMICS (ECO415) SEMESTER: MARCH - AUG 2021 TEST PART

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U Mobile Stay Safe 46 MY MAXIS 77% D 11:32 [Template] TES... Q . . . ECONOMICS (ECO415) SEMESTER: MARCH - AUG 2021 TEST PART B: CASE STUDY Marybrown - the world's local eatery MARRYBROWN, Malaysia's own fried chicken recipe, is clearly a Malaysia Boleh success. Undeterred by stiff competition from the 2 American giants - Mcdonald's and Kentucky Fried Chicken (KFC) - the home grown fast food chain thrives in niche markets of people with "localized taste buds". Husband and wife Lawrence and Nancy Liew started their business in a little outfit in Johor Baru. They read the market quite well: city folks are routinely exposed to western culture feast on Mcdonald's and KFC all the time. But a larger number of people in the country simply just can't leave out chilly sauce in their meals. Since this market segment was ignored by the Americans, Marrybrown started to offer an alternative - Western food with localized flare. It serves its fried chicken with local food such as nasi lemak and porridge. Marrybrown has the first Western menu fast food chain to introduce rice in 1995. That move was followed much later by Mcdonald's with its chicken porridge and A&W with its rice helping. KFC, through its local subsidiary Ayamas, is also moving aggressively in the chicken and rice meal market. Based on the above article, answer the following questions. a) Define market structure and list the different types of market structures. (3 marks) b) Which market structure does Marrybrown best represent? Discuss two (2) characteristics of this market structure. (5 marks) c) Explain what is meant by product differentiation. Provide an example of product differentiation strategy adopted by Marrybrown in the article. (3 marks) d) Suppose that in this industry Marrybrown is operating, it is fairly easy for firms to enter and exit. Explain what would happen to the economic profits of firms in the long run. (4 marks) (TOTAL: 15 marks) END OF QUESTION PAPER O O

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