From the scenario for Katrina’s Candies, determine the appropriate type of marke
ID: 1205149 • Letter: F
Question
From the scenario for Katrina’s Candies, determine the appropriate type of market structure for the situation in question. Cite at least four (4) defining characteristics that have helped you reach this decision regarding the appropriateness of the chosen structure.
Imagine that you are a manager of a chemical company. An accident has occurred in which chemicals leaked into the ground water nearby. The community is unaware of the accident. Compare the primary costs involved in cleaning up the water immediately (and thus confessing) versus hiding your culpability now and possibly paying more in the future. Predict the impact on profitability in both situations.
Explanation / Answer
It looks lilke oligopoly market structure:
1: Few Seller in the market
2:There is barriers to entry to form since its chemical so not everybody is give license to operate by govt.
3: Lack of uniformity: Chemical factory may be big may be smallit's asymmetrical.
4: There is no group behaviour .
Primary cost involved in cleaning the water will be the same in both the situation since same amt of resources willbe required. but there willbe profitability issue. If the water is cleaned up immediately and thus confess then there will be no legal action against the company and thus it will save alot of money which is not in other case.
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