ASSSIGNMENT OVERVIEW:
For the two writing assignments in this course, you will choose an industry to follow throughout the semester. I encourage you to read a current periodical, which provides careful industry analyses, on a regular basis throughout the semester. Periodicals that you might find of particular value include The Economist, The Wall Street Journal, and The New York Times. There are many other sources of information on current events in various industries, so please feel free to consult other sources as you prepare this writing assignment.
ASSIGNMENT INSTRUCTIONS:
The objective of this second writing assignment is for you to determine whether or not the industry you are studying is perfectly competitive. Your paper should answer the following questions pertaining to the product or service provided in this industry and to the market setting in which firms operate:
Do a large number of firms compete with each other in this industry? If not, which firms dominate the industry? Briefly describe a typical firm.
Does this market serve a large number of consumers or does is serve
Select and small group of consumers? Briefly describe a typical consumer.
Are the products sold in this industry identical? If the products are not identical, are they sufficiently similar to be very good substitutes or are products highly differentiated from each other? Be specific and provide examples of similarities and differences among the products.
Is it easy for firms to enter and exit this industry? What is involved in opening up shop in this industry? Discuss any barriers to entry.
Do producers and consumers have easy access to information on prices in this industry? Is it easy for buyers and sellers to find one another or is it costly to the buyers and sellers to make arrangements to exchange the product or service in this industry?
After you have answered the questions above, provide a summary of whether or not you think the industry you are studying can be reasonably described as competition.