[Answered] ECON312N -Week 4 Discussion: Market Concentration of Firms and the Determination of Price and Output

Course 

ECON312N Principles Of Economics

Required Resources
Read/review the following resources for this activity:

  • Textbook: Chapter 9, 10
  • Lesson
  • Minimum of 1 scholarly source (in addition to the textbook)

Initial Post Instructions
Consider the following statement:

Firms in the healthcare industry do not seem to have features of a perfectly competitive market structure and, therefore, must not be classified as such. Those firms fall somewhere within the continuum from monopolistically competitive and oligopoly markets to monopoly markets (specifically regional monopolies).

For the initial post, decide if you agree or disagree with the statement.

  • If you agree with this statement, provide at least two examples of firms in the healthcare industry (pharmaceutical companies, medical centers, insurance companies, etc.), and identify the features the firms you selected have that make you believe that they should be classified in one or several of the following market structures: monopolistically competitive and oligopoly market structures; monopoly market structures.
  • If you disagree with the statement, name at least two firms in the healthcare industry (pharmaceutical companies, medical centers, insurance companies etc.), and provide reasons why those firms you selected can be classified as perfectly competitive firms.

Note: The two examples must come from different industry groups. For example, both firms cannot be insurance companies.

Follow-Up Post Instructions

Respond to at least one peer. Further the dialogue by providing more information and clarification.

Writing Requirements

  • Minimum of 2 posts (1 initial & 1 follow-up)
  • Minimum of 2 sources cited (assigned readings/online lessons and an outside scholarly source)
  • APA format for in-text citations and list of references

Grading
This activity will be graded using the Discussion Grading Rubric. Please review the following link:

Course Outcomes (CO): 1, 6, 7

Due Date for Initial Post: By 11:59 p.m. MT Recommended by Wednesday
Due Date for Follow-Up Posts: By 11:59 p.m. MT on Sunday

Posts must be on separate days.

ANSWER

In my opinion, firms in the healthcare industry do not seem to have features of a perfectly competitive market structure. I believe that most fall within the continuum from competitively monopolistic and oligopoly markets to monopoly markets. Let me divulge into a few industries and give my reasoning for my beliefs. My first example is regarding pharmacies that would fall into the monopolistic competition category. Each pharmacy sells slightly different products that aren’t identical but close in comparison. They also determine the price to list for each item they sell. There is a smaller pharmacy in my rural town -Jacks Pharmacy…..please click the icon below to purchase the answer  at $5