ECON616 1501B 02ph2ip
AutoEdge’s Market Fit
Phineas C. Cody
CTU Online Phase 2 IP
ECON616-1501B-02 Professor: Hagen
Introduction
In order to answer the question as where AutoEdge fits in its industry in comparison to its competitors it will be helpful to look at market structure and the various areas or types of market structure. So what is a market structure? A market structure may be defined as “the characteristics of the market” (Whatiseconomics, 2014). The word characteristics is the key to fully grasping this seemingly simple definition of what market structure is. Market structure or the characteristics of the market can be sorted into two categories where one is organizational characteristics and the other is competitive characteristics. Consideration should be given to other features that may also be a good description of a product or service market. Features such the number of businesses in a specific market where this would provide a broader view of both national and international competitors, concentration ratios show which entity is holding the larger percentage of the market, nature costs illustrates the effects of contestability thats inclusive of economic scale and suck costs.
It great depends on the characteristics that will show the greatest value of information. Often the market characteristics that offer such valued data are the area of competition and pricing. Examining these areas of market structure and give information on competitors who are producing the same products or services as AutoEdge. Even the behavior of a market can be carefully analyzed with the use of market structure because the information collected will illustrate how consumers are spending, their responses and behavior to a product or service, and the price of a product or service. In the following paragraphs there are four types of market structures that will be looked at; the monopoly structure, the oligopoly structure, the monopolistic competition structure, and the pure
Phineas C. Cody
CTU Online Phase 2 IP
ECON616-1501B-02 Professor: Hagen
Introduction
In order to answer the question as where AutoEdge fits in its industry in comparison to its competitors it will be helpful to look at market structure and the various areas or types of market structure. So what is a market structure? A market structure may be defined as “the characteristics of the market” (Whatiseconomics, 2014). The word characteristics is the key to fully grasping this seemingly simple definition of what market structure is. Market structure or the characteristics of the market can be sorted into two categories where one is organizational characteristics and the other is competitive characteristics. Consideration should be given to other features that may also be a good description of a product or service market. Features such the number of businesses in a specific market where this would provide a broader view of both national and international competitors, concentration ratios show which entity is holding the larger percentage of the market, nature costs illustrates the effects of contestability thats inclusive of economic scale and suck costs.
It great depends on the characteristics that will show the greatest value of information. Often the market characteristics that offer such valued data are the area of competition and pricing. Examining these areas of market structure and give information on competitors who are producing the same products or services as AutoEdge. Even the behavior of a market can be carefully analyzed with the use of market structure because the information collected will illustrate how consumers are spending, their responses and behavior to a product or service, and the price of a product or service. In the following paragraphs there are four types of market structures that will be looked at; the monopoly structure, the oligopoly structure, the monopolistic competition structure, and the pure