Answer preview

Monopolistic

In a monopolistic market structure, there is free entry, and exit into the market and enterprises significantly differentiate products. In other words, different products satisfy the same customers’ needs in the market. The market structure is common among the small business and the stores that are independently owned. The market structure is unique to a given geographical location. For instance, restaurants target the same customers but offer different products. Following the opportunity for differentiation and the free entry to the market, there is a continuous attraction of new firms into the industry. Firms operate under a low-profit-margin although in some circumstance’s firms can report supernormal profits. The challenge is that the supernormal profits attract more investors into the market. Landry’s Bicycle in Boston experiences this market structure. Although the store has the most significant share of the market in Boston, MA there are many players…