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Market Structure

Some firms have a large share of the market while others are just starting. A firm can often create a brand name which gives them market power. Market power is defined as the ability to raise prices without losing all demand. Since you are analyzing franchise firms, we can conclude that the brand name is somewhat established. Write a 2- to 3-page paper about the following issues: 1.What type of market do you think your franchise operates? What type of competition does your firm face? Who are some competitors? (Even if you said your firm is a monopoly, think of some subsitutes.) 2.How do you think your firm can increase its market power?

The government often has two conflicting roles. It protects consumers by keeping prices fair and promotes a free market (entry of firms). Suppose your firm has a special patent. Do you think patent licenses should expire? Be sure to support your argument with references.

SLP Assignment Expectations

Use concepts from the modular background readings as well as any good-quality resources you can find. Be sure to cite all sources within the text and provide a reference list at the end of the paper.

Length: 2–3 pages double-spaced and typed.

The following items will be assessed in particular: •Your ability to understand an application of imperfect competition. •Some in-text references to the modular background readings (APA formatting not required). •The essay should address each element of the assignment. Remember to support your answers with solid references.

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