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Competition and markets

Competition and markets

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 proces without losing all demand. Since you are analyzing franchise firms, we can conclude that the a brand name is somewhat established. Write a 2-3 page paper about the following issues:

1. What type of market do you think your franchise operates (perfectly competitive, monopoly, monopolistically competitive, oligopoly)? What are the specific characteristics that make it this type of firm?

2. 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)

3. How do you think your firm can increase its market power?


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