For this paper, you’ll be selecting a market/industry and discussing which market structure applies to it.
- Compare and contrast your industry to each of the three characteristics of the market structure you chose and explain why the industry fits each of the characteristics of the market structure. In addition, explain why this industry is an example of market failure.
- Then make a conclusion about which type of market structure your industry
An industry is nothing more than a grouping/classification of different types of good/service providers. Many companies that offer a similar product or service are usually grouped into an industry. Sometimes an industry is called a market in economics, although a market can be as large as a whole industry or as small as an individual business, but don’t get too stuck on that.
I would suggest starting with a company or business that you’re familiar with, then working from there. For example, say you picked McDonald’s, then the industry would be Food Service, or more specifically, Fast-Food. Food Service would be an overarching industry, while Fast-Food would be a sub-industry if you will. Depending on how broad or narrow the market is, will influence what type of market structure it may be.
If you need help finding/picking an industry, then check this list provided by the Bureau of Labor Statistics (BLS): https://www.bls.gov/iag/tgs/iag_index_alpha.htm