Identify the corresponding market structure for each of these products/firms - Leaving Cert Economics - Question 9 - 2021
Question 9
Identify the corresponding market structure for each of these products/firms.
A
The Irish banking sector
B
Irish Water (the company)
C
A takeaway food outlet
(b)... show full transcript
Worked Solution & Example Answer:Identify the corresponding market structure for each of these products/firms - Leaving Cert Economics - Question 9 - 2021
Step 1
A. The Irish banking sector
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Answer
The Irish banking sector operates as an oligopoly because it is dominated by a small number of large banks. These banks have significant market power, which enables them to influence interest rates and other financial services in the market.
Step 2
B. Irish Water (the company)
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Answer
Irish Water functions as a monopoly since it is the only provider of water supply and wastewater services in Ireland. This exclusive control allows it to dictate prices and terms without direct competition.
Step 3
C. A takeaway food outlet
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Answer
A takeaway food outlet is classified under monopolistic competition. This is characterized by the presence of many firms offering similar but not identical products. Each outlet can set its prices independently due to product differentiation, leading to monopolistic elements in pricing.
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