ECONOMICS

Section 1.
Solution:
Price per Ounces (s) QS QD

$1500 80 60
$1400 70 70
$1300 50 80
$1200 40 90
$1100 30 120

Graphic representation of Supply:

The quantity of a good that is sold on the market is determined by a number of variables,
including the price that can be obtained for the good, the pricing of replacement goods, the
technology used in manufacturing, the cost and availability of labour, and other production
factors. Basic economic analysis entails holding all other potential price determinants constant
while examining the link between different prices and the quantity that producers might offer at
each price. These price-quantity combinations may be plotted on a supply curve, where price
would be represented on the vertical axis and quantity would be represented on the horizontal
axis. 

The ability of producers to sell more of the commodity they produce in a market with higher
prices is typically reflected by an upward-sloping supply curve. While changes in the price of the
commodity can be tracked along a fixed supply curve, changes in non-price elements would
result in a shift in the supply curve.

Supply Curve
1600
1400
1200
1000
800
600
400
200
0
20 30 40 50 60 70 80 90

Graphic representation of Demand:

Demand Curve
1600

1400

1200

1000

800

600

400

200

0
50 60 70 80 90 100 110 120 130

A demand curve almost usually slopes downward, demonstrating buyers' desire to buy more of
the good at the current price. Demand for a certain commodity is influenced by its price as well
as potentially a wide range of other variables, including consumer income, consumer trends, and
seasonal impacts. Basic economic analysis entails studying the relationship between several price
levels and the maximum quantity that consumers might possibly purchase at each of those prices
while frequently holding all other variables constant. The price-quantity combinations can be
shown on a demand curve, where the horizontal axis represents quantity and the vertical axis
represents price.
While changes in the price of the commodity can be tracked along a stable demand curve,
changes in non-price elements would result in a shift in the demand curve.

THE EQUILLIBRIUM POINT:

The equilibrium price in economics is determined by equating the supply and demand functions,
then solving for the price. In a state of economic equilibrium, the forces of the market are in
balance. When market supply and demand are in balance, prices become sustainable. This is
known as equilibrium. In general, a surplus of goods or services leads to lower prices, which
increases demand, whereas a shortfall or undersupply raises prices, which decreases demand.

Equillibrium Point
1600
1400
1200
1000
800
600
400
200
0
20 40 60 80 100 120 140

QS QD

From the graph it is evident that the equilibrium point is $1,400 at a stable quantity supplied &
demanded i.e. 70.
Arithmetic Calculation for Equilibrium:

Supply Price Demand

80 1500 60

70 1400 70
 50 1300 80

Equation for Demand

Linear Equation = Y= mx + b Equation for Supply
m= y2 - y1/ x2 - x1 Linear Equation = y= mx+b
m = 1400-1500/70-60 m= y2 - y1/ x2 - x1
m= -100/10 = -10 m = 1400-1500/70-80
y = -10x + b m = -100/-10 = 10
putting values into equation y = 10x + b
1500= -10(60) + b putting values into equation
1500 = -600 + b 1500 = 10(80) + b
B = 1500+600 B = 1500-800
B = 2100 B = 700
Thus equation = y = -10x +2100 Thus equation = y = 10x +700
Solving for both equations
y = 10x +700
y = -10x + 2100
2y = 2800
y = 2800/2
y = 1400
Inserting value of y into any of equation to calculate x
y = -10x + 2100
1400 = -10x +2100
+1400-2100 = -10x
-700 = -10x
x = 70
Equilibrium quantity demanded and supplied = 70
Equilibrium price = $1400

Shift in Equilibrium point:

Price per Ounces (s) QS QD

$1500 80-20 = 60 60
$1400 70-20=50 70
$1300 50-20=30 80
$1200 40-20=20 90
$1100 30-20=10 120

By changing Supply
 Equillibrium Point
QS QD
1600
1400
1200
1000
800
600
400
200
0
0 20 40 60 80 100 120 140

With everything else remaining constant, an increase in supply will result in a decrease in the
equilibrium price and an increase in the quantity demanded. The equilibrium price will increase
as the supply declines, while the quantity demanded will go down.

Here the equilibrium price goes up i.e $1500 whereas quantity demanded goes down to 60
because of reduction in supply.

By changing Demand:
Price per Ounces (s) QS QD

$1500 60 60-20=40
$1400 50 70-20=50
$1300 30 80-20=60
$1200 20 90-20=70
$1100 10 120-20=100
 Demand Supply Curve
QS QD
1600
1400
1200
1000
800
600
400
200
0
0 20 40 60 80 100 120

Equilibrium is achieved at the price at which quantities demanded and supplied are equal. We
Reduced demand will result in a drop in the equilibrium price and a reduction in supply. When
supply is constant but demand rises, the higher demand drives up the equilibrium price and vice
versa. If the determinant lowers demand, the demand curve moves to the left. Less demand for
the good or service results from this. When there is a recession, it occurs when buyer incomes
decline. Even though everything is priced the same, they will purchase less of everything. Here
the equilibrium price goes up i.e $1400 whereas quantity demanded goes down to 50 because of
reduction in demand.

Shifting of equilibrium:

The price at which the quantity provided and demanded are equal is referred to as the
equilibrium price. It is established by where the demand and supply curves cross.

If more goods or services are produced than are needed to satisfy demand at the going rate, there
is a surplus, which pushes prices lower. If more people want a good or service than can be
supplied at the going rate, there is a shortage, which pushes prices up.
With everything else remaining the same, an increase in demand will result in a rise in the
equilibrium price and an increase in supply. Reduced demand will result in a drop in the
equilibrium price and a reduction in supply.

With everything else remaining constant, an increase in supply will result in a decrease in the
equilibrium price and an increase in the amount required. The equilibrium price will increase as
the supply declines, while the quantity needed will go down.

Here in the situation above, the quantity demanded has reduced, ultimately both the equilibrium
and quantity supplied are reduced and curve has moved to left.

However, in case of supply shift, the equilibrium has increased and the quantity demanded has
reduced as shown by the graph.

QUESTION NO. 2:

A few events affect the market for medicines. State whether each of these changes will
affect supply or demand, and in what direction. Explain briefly.

Due to price inflation of ingredients, medicines are more costly to manufacture.

Price inflation of ingredients will create Cost-push inflation, is an increase in general prices
(inflation) brought on by an increase in the price of raw materials. The total amount of
production in the economy may decline as a result of higher manufacturing costs. Cost-push
inflation results from the manufacturing price increases being passed on to consumers because
the demand for goods hasn't altered. The executive management of a firm may attempt to pass on
higher production costs to customers by increasing the price of their goods. The company's
profits will decline if it doesn't raise prices to offset rising production expenses. Demand often
decreases as higher prices are passed through to the consumer.

Supply chain inflation can have a knock-on effect on prices by driving up supply chain expenses,
which in turn drives up inflation and prices. Consumers have less money to spend on goods and
services when prices rise. People make changes to their spending patterns, which collectively can
slow down economic growth overall and possibly increase unemployment. There may be less
demand and increased prices for businesses.
A shortage of scientists affects the workforce of pharmaceutical companies.

Markets for labor have demand and supply curves, just like markets for goods. The law of
demand applies in labor markets this way: A higher salary or wage—that is, a higher price in the
labor market—leads to a decrease in the quantity of labor demanded by employers, while a lower
salary or wage leads to an increase in the quantity of labor demanded. The law of supply
functions in labor markets, too: A higher price for labor leads to a higher quantity of labor
supplied; a lower price leads to a lower quantity supplied.

Like markets for products, labour markets also have demand and supply curves. When there is a
labour shortage, the labour pool is small, it is challenging to find quality candidates, it takes
longer to fill open positions, and the retention rate is low. To recruit and retain workers,
employers might need to offer better benefit packages and greater wages. When wages are
competitive, a business's expenses could rise, forcing it to raise prices, which would cause
consumers to spend less overall and reduce demand.

Delocalization in emerging countries allow cheaper production

Economic delocalization refers to the relocation of businesses, capital, and jobs to regions of a
nation or the world that have a competitive edge. The production is outsourced to other nations,
and as a result, the phenomenon of outsourcing creates jobs for foreign nationals. Delocalization
thus accounts for the rise in unemployment in developed nations. Entrepreneurs manufacture
where labour costs are lower and sell where there is a market for their products.

Delocalization gives a business the chance to genuinely excel at its primary value offering. The
corporation is able to concentrate on fewer tasks as labour is distributed across more specialized
areas, and the more efficient it can become via this renewed emphasis. Economies of scale are
made possible by specialization. Due to increased manufacturing scale, operational efficiency
and synergies are responsible for this. Specialization in production is increasing. Due to
globalization, items can now be produced anywhere in the world. Cheaper average expenses and
lower prices for consumers are made possible by this increased specialization.

More severe diseases hit the northern hemisphere this winter.

When more serious illnesses appear in the area, demand for the medications will rise since more
people will want to be healed. The output and equilibrium price will both shift in the same
direction in response to changes in demand. A rise in demand will result in an increase in a
good's equilibrium price and output. Excess demand arises at the starting price. As a result of the
growth in demand. The price will increase due to excessive demand, and as the price increases,
manufacturers will be more inclined to sell, boosting output.

New alternative organic treatments are in trend this year.

The general people will most likely be inclined to employ innovative organic remedies rather
than use medications if they become popular. As a result, there will be a decrease in the demand
for the drugs. A fall in demand will result in a decrease in a good's equilibrium price and
quantity. At the original price, there is an excess supply due to the decline in demand. Price will
drop due to oversupply, and as a result, producers will be ready to create less of the good,
reducing output. The demand curve moves to the left when demand declines. The price at
equilibrium declines. The supply of medicines declines when the price drops to the new
equilibrium level. The activity of production and supply as a whole will slow down.

QUESTION NO. 3:

Explain the concept of price elasticity of demand, present the formula, and calculate the
elasticity for the following data:
Price: $10 increases to $12
Quantity: 100 decreases to 95.
Explain the category of elasticity of this good.

 Price elasticity of demand measures how much a product's consumption changes in

response to price changes.
 If a good's price elasticity is infinite, it is perfectly elastic (if demand changes
substantially even with minimal price change).
 The good is elastic if price elasticity is more than 1, and inelastic if it is less than 1.
 A good is completely inelastic if its price elasticity is zero, meaning that no amount of
price variation will alter demand.
  Price elasticity is referred to as unitary elasticity if it is exactly 1 (price change causes an
equal proportion change in demand).

The price elasticity of demand, which depicts changes along a demand curve, demonstrates the
responsiveness of quantity demanded to a price change under the assumption that other demand-
inducing factors remain constant. The price elasticity of demand is always negative for a
downward-sloping demand curve since the price and quantity demanded move in the opposite
directions. If the price changes by a positive percentage, the quantity demanded must change by
a negative proportion, and vice versa.

Types of Price Elasticity of Demand

Perfectly Inelastic Demand:

Price changes have no impact on the demand for your goods if your PED is 0. Only truly
necessary goods and services, in general, have perfectly inelastic demand.

Relatively Inelastic Demand:

If the demand percentage change is smaller than the price percentage change. In most
circumstances, demand is relatively elastic for necessities that people are prepared to pay extra
for.

This frequently includes products or commodities that cannot be easily replaced, such as
electricity, a scarce resource for which there is no practical counterpart.

Unit Elastic Demand

A product or service has unit elastic demand if a change in demand results in a corresponding
change in price, i.e., a price increase of X% causes an X% fall in demand.

Perfectly Elastic Demand

If the change in demand outweighs the price change for your goods. Here, a tiny change in price
will result in a very significant shift in demand. Items with numerous replacements often have
rather elastic demand.
Pf = 12

Pi = 10

Qf = 95

Qi = 100

Putting values into formula:

= [(95-100) / (100+95)] / [(12-10)/ (12+10)]

= [-5/195] / [ 2/22]

= -0.02564 / 0.09090

= -0.282068

= 28.206%

Here the price elasticity is less than one means that the demand is inelastic.

The elasticity of demand is impacted by close substitutes for a good. Consumers will rapidly
convert to the alternative product if the price of your product rises or the price of the alternative
product falls if another product can be easily substituted for it. For instance, all meat items,
including beef, pork, and chicken. Recent years have seen a decrease in the price of poultry,
which has led to a rise in the consumption of poultry at the expense of beef and pork. Therefore,
the demand for products with close substitutes is often elastic.

QUESTION NO. 4:
Explain what the category of price elasticity for the following products should be.

When a good or service's demand varies in reaction to a price adjustment, this phenomenon is
known as price elasticity. Demand elasticity can be broken down into a number of categories,
including elastic, inelastic, and unit elastic.

 Petrol

One classifies gasoline as an inelastic product. This demonstrates that despite price increases,
there is still a fair amount of demand for gasoline. This is due to the fact that many people
depend on gasoline because it is necessary for transportation.

 Clothes

Depending on the style of clothing and the particular market, the elasticity of demand for
clothing can change. For instance, since many people consider T-shirts and jeans to be needs,
they may be less elastic than other types of apparel. Luxury clothing products, such as designer
dresses, on the other hand, might be more elastic since consumer demand for them might be
more responsive to price changes.

 Cars

Depending on the particular market, the elasticity of the demand for automobiles also varies.
Since luxury automobiles tend to be more expensive and consumers may be more likely to
replace them with less expensive alternatives when the price rises, the demand for cars may
generally be more elastic for these types of cars. On the other hand, because they are seen as
requirements by many people, the demand for basic transportation vehicles may be more rigid.

 Travel

Depending on the particular market, the demand for travel may have a different elasticity. For
instance, demand for foreign travel may be more flexible since consumers may be more prepared
to switch to domestic travel when costs rise. On the other hand, because people might still need
to travel for employment or other reasons, the demand for domestic travel might be more rigid.

 Fillet Steak
The specific market and the accessibility of alternatives may affect the elasticity of the demand
for fillet steak. In general, higher-end cuts of fillet steak may have more elastic demand because
consumers may be more willing to switch to less expensive options as the price goes up. On the
other hand, because many people view lower-quality portions of meat as needs, the demand for
them may be more rigid.

QUESTION NO. 5:

Section II.

1. Study the social networks market in the US over the last 10 years. Discuss its competition
characteristics using recent data (i.e., market share, customers, profits…)
Which type of competition is achieved in this market? What are the changes in the industry
which could lead to a change in market structure?

The number of mobile internet connections increased the proportion of services performed
online, which led to a boom in the social networking sites sector over the ten years leading up to
2022. As more individuals utilise mobile devices to access social networking sites and other
media platforms, the percentage of services conducted online—a valuable indicator of the
growing influence of the internet—has climbed at an average pace of 2.0% over the ten years
leading up to 2022. Advertisers have increased in number as more individuals use the internet.

It is evident from below mentioned graph that the size of market share has enormously increased
in terms of usage of social media in United States from the years 2005-2027 expectedly.
A study was made “The Impact Of Social Media On Economic Growth” by Vitenu-Sackey, P. A.
(2020). 198 nations were used as a sample for the study, which examined the effects of social
media on economic growth from a global viewpoint between 2009 and 2017. The study finds
that social media can affect economic growth in both positive and bad ways. The main forces
behind social media may be fixed broadband, the quantity of online users, and secure internet
servers. The study discovered, in particular, that Facebook and Pinterest have a detrimental
impact on economic growth.

The positive relationship finding supports the first hypothesis that, if barriers to entry are
removed, users of social media will be able to publish and disseminate information without any
restrictions with the support of an adequate and effective internet and broadband supply. This is
because the variety of media, such as wikis, blogs, pictures, and videos, among others, greatly
enhance the potential of social media in relation to economic growth.
According to the last 10 Year data, Facebook is presently leading the pack. With over three in
four (60.1%) adults using it, it is firmly seated in the top spot among the most popular social
media sites in the US. Currently, the platform is the best for social media marketing, with up to
23.6% of businesses using it to advertise their brands.

Facebook Messenger is the second-most popular social networking platform in the US. Adults
utilize it in 47% of cases, which is 13.1% fewer than on Facebook.

With three out of every five (18.5%) US adults using it, Pin Interest comes in third on the list of
the top social media sites in the country.

Another study made by Vitenu-Sackey, P. A. (2020) states that the in United States of America,
the most captured market share was by facebook that is 64.99% in 2020 whereas the other apps
only owns 35.01% share of the market. This shows facebook is playing a single show.
As per stat counter global stats; Facebook is the most popular social media platform in the
United States, and from 2012 to 2022, it is expected to grow from 48% to 74% of all social
media usage.

Both buyers and sellers are still prevalent in monopolistic competition. However, none of them
sell the same kinds of goods. Although the products are identical, each supplier offers a few
small differences.

Consumers can now select one product over another at their discretion. The sellers may be able
to charge a little bit more because they may have some market power. As a result, to some
extent, the sellers establish the prices.

Usually, several sites compete in a fairly clearly defined category in this industry. Social media
sites have a lot of crucial similarities even though these categories are very distinct from one
another. First off, the majority of these websites heavily rely on user-generated content, where
customers essentially choose the companies' product offers. Users frequently have quite diverse
tastes in content and prefer to share it with other users who share their interests, which results in
significant but local network externalities. The spontaneous differentiation equilibrium is less
likely to exist when businesses are not in competition (advertising levels are constant). Firm
competition is a prerequisite for spontaneous differentiation equilibrium to exist. As a result, the
only factor driving content distinction is user-generated content. It may also be crucial in altering
market structure.
Monopolistic Competition exist in United States because of the reason that a large number of
buyers as well as social media apps. They are providing same functions of being connected to the
world but they are heterogeneous in the way of providing services.

The majority of the studies relates that the advent of social media in their industry raised the
threat from substitutes, which was the biggest effect of social media on substitutes. Many of
them provided instances of competing goods or services when we asked them what replacements
meant to them.

Conclusion:

The new technology simultaneously influences cost and demand structures, fundamentally
altering current market arrangements. As a result, it is now harder to appropriate any value that
has been created. In addition, because the Internet has multiple simultaneous effects on
industries, we find that focusing only on how pricing behavior and price dispersion are affected
by the Internet misses the fact that entire industries are changing, which obviously has an impact
on the pricing power and potential of individual firms.

References:

Vitenu-Sackey, P. A. (2020). The impact of social media on economic growth: Empirical evidence of
facebook, youtube, twitter and pinterest. International Journal of Business, Economics and
Management, 7(4), 222-238.

Mitchuk, O., Sydorenko, N., Holik, O., Diahovchenko, L., Havryliuk, I., & Myronets, N. (2022). Improving
the Financial Stability of IT Companies through Social Media Marketing. Wseas transactions on business
and economics, (19), 1621-1632.

Amrouche, N., & Hababou, M. (2022). Role of Social Media in Socioeconomic Development: Case of
Facebook. Review of Economic Analysis, 14(3), 381-417

Answer this question like an essay with an introduction and a conclusion and
2/3 sections in between. Use 10 unique professional/academic references.
Tips: Include an analysis of the environment such as the 5 forces of Porter to
explain the change in industry structure.
2. Explain the different types of competition or industry structure. Illustrate
your answer with relevant examples in the country of your choice.
Introduction to Market Structure:
"Market structures" refer to the various market traits that affect how sellers relate to one another,
to consumers, and more. Market structure refers to how businesses are classified and categorised
based on the kinds of items they offer (homogeneous/heterogeneous), as well as how external
variables and factors influence their functions and operations. Understanding the various traits of
various markets is made simpler by market structure. An economy will be characterised by a
range of market forms. These market structures fundamentally describe the level of market
rivalry.

Other factors that affect market structures include the types of commodities and services, number
of sellers, number of buyers, kind of item or service etc.

Competition is when businesses in the same market provide comparable or alternative items.
Additionally, they both aim to meet the needs of the same consumer sectors.

TYPES OF MARKET STRUCTURES:

In the marketplaces, there are four main types of competitions:

1. MONOPLOY:
 Monopoly occurs when a good or service is sold by just one company. In these markets, a
product with no close alternatives has only one vendor. There is no other vendor offering this
good or a replacement good if customers are interested in it.

Water, electricity, and the majority of utility services are examples.

In monopolistic markets, marketing plays a relatively minor impact. The provincial or the federal
government regulates the majority of monopolistic marketplaces. Since no other company offers
the same or a similar good, customers are unable to transfer providers. For these reasons,
advertising and promotion are essentially nonexistent.

Example:

Examples of monopoly in Pakistan:

 Murree Brewery Company.

 PTCL monopoly.
 WAPDA.
 Automobiles.
 Railways.
 SSGC.
 PIA.

2. Oligopoly:

When a small number of firms dominate the market and the majority of the sales, oligopoly
results. Businesses typically don't compete on pricing under oligopolies. By collaborating rather
than going head-to-head on price, businesses optimize their combined earnings. In oligopolistic
marketplaces, there is frequently non-price competition. Instead of pricing, businesses compete
on other aspects of the marketing mix such product quality, distribution, and/or promotion.

Example:

The aviation and banking industries are just two of the many oligopolistic marketplaces in
Canada.
 3. Monopolistic competition

There are several sellers in the market when there is monopolistic competition. Products that are
similar but not identical are sold by vendors. Products might be suitable alternatives.

Apartments, books, bottled water, clothing, fast food, nightclubs, etc. are few examples.

In monopolistic competition, customers choose between comparable goods. For instance,

depending on the features and costs of various brands, people shopping for tiny cars may change
between them.

The importance of advertising in monopolistic competition is crucial. Sellers feel the need to
market since the products are different (they are not same), allowing them to highlight to
customers their superior qualities. In monopolistically competitive markets, coupons or
promotional deals are often employed marketing strategies.

Example:

The most prevalent sort of monopolistic competition examples are fast food chains like
McDonald's and Burger King, which sell hamburgers in the market. The two businesses
described above both sell products of a nearly identical sort, but they are not a direct substitute
for one another. It is now entirely up to the individual consumer to decide which product and
which firm they prefer. These businesses also market other goods outside hamburgers, such as
French fries, soft drinks, etc.

4. Pure Competition:

There are a good amount of sellers in pure (or perfect) competition, and every one of them is
selling the same thing

Examples are businesses that deal in agricultural commodities like wheat, rice, and grain.

Because the items are identical, advertising campaigns have no impact under perfect
competition. Advertising is only one aspect of marketing. In completely competitive markets,
distribution (list "P" as one of the 4Ps) can aid in enhancing access.
Example:

One such commodity is pizza, a market in Pakistan that may have gained nearly perfect
competition. A relatively new product that many at the time thought was a delicacy. After thirty
years, Pakistan has thousands of eateries (or pizzerias?) that serve pizza in one form or another.

MARKET STRUCTURE EMBEDDED WITH PORTER’S FORCES

 Threat of New Entrants

If new producers enter the market and put more pressure on the current firms, entry into the
market would be viewed as a danger. This can be brought on by a rise in industry supply or
competition from fresh, cutting-edge products. In order to maintain their market share,
established businesses must contend with fresh competitors.

Up until the beginning of 2000, the De Beers Group had a monopoly and controlled nearly 95%
of all diamond mines worldwide. Due to lack of access to the mines, no other company was able
to enter the market.

The fact that one company controls/owns the majority of the resources needed to manufacture a
specific product is another illustration of entry barriers.

 Power of Buyers and Power of Suppliers

Buyers can become influential under two circumstances. First, when there aren't many of them.
In this instance, the loss of just one consumer results in the sellers losing a significant portion of
the market. Second, if switching costs are minimal, purchasers gain power. When there are no
switching costs or very little switching costs, it makes it easier for purchasers to switch to
another seller.

Power accrues to a supplier under two circumstances. First, when the product is essential to the
customer, keeping them loyal to the vendor. Second, once the seller has accrued switching
expenses. One factor preventing customers from transferring between multiple sellers is high
switching costs. The contracts you sign when you purchase are there for this reason.

 Threat of Substitutes and Level of Existing Competition

The threat posed by substitutes is the existence of other products that a customer might buy from
sources outside of an industry. When substitute items are offered that offer benefits that are
reasonably similar to the original product at a competitive price, the competitive structure of the
industry is endangered. The quantity of profitability that may be achieved within an industry is
thus constrained by the price points at which substitutes are offered.

Players in an industry must focus more on becoming as efficient as they can be when there is a
significant threat of replacements; otherwise, their high cost structures would hinder profitability
and maybe drive some businesses out of business.

When the fear of replacements is lessened, industry participants often relax their cost-control
measures, which leads to higher prices passed on to customers. There is a bigger possibility for
earnings within the industry because there is minimal chance of competition from outside it. As a
result, businesses frequently increase their profits at the expense of their clients.

Conclusion:

Market structure describes how various industries are categorised and distinguished depending
on the strength and type of competition they face for services and products. Market structures
display relationships between sellers and purchasers or between sellers and other sellers.

The following characteristics explain why the categories are different: In oligopoly, there are few
producers, many in perfect and monopolistic competition, and one in monopoly. Low in perfect
competition, moderate in monopolistic competition, high in oligopoly, and generally highest in
monopoly are the levels of product differentiation, producer pricing power, entry obstacles for
new producers, and non-price competition (such as advertising).

References:

Khurram, A., Hassan, S., & Khurram, S. (2020). Revisiting Porter five forces model: Influence of non-
governmental organizations on competitive rivalry in various economic sectors. Pakistan Social Sciences
Review, 4(1), 1-15.

Juliana, J. P. E., & Nyoman, Y. N. (2019). Factors influencing competitiveness of small and medium
industry of Bali: Porter’s five forces analysis. Russian Journal of Agricultural and Socio-Economic
Sciences, 89(5), 45-54.
Dulčić, Ž., Gnjidić, V., & Alfirević, N. (2012). From five competitive forces to five collaborative forces:
revised view on industry structure-firm interrelationship. Procedia-Social and Behavioral Sciences, 58,
1077-1084.

Kraft, K. (1989). Market structure, firm characteristics and innovative activity. The Journal of Industrial
Economics, 329-336.

Slade, M. E. (1986). Conjectures, firm characteristics, and market structure: An empirical

assessment. International Journal of Industrial Organization, 4(4), 347-369.

Cyert, R. M., & March, J. G. (1955). Organizational structure and pricing behavior in an oligopolistic
market. The American Economic Review, 45(1), 129-139.

Aman, A., & Hopkinson, G. (2010). The changing structure of distribution channels in
Pakistan. International Journal of Retail & Distribution Management.

Scherer, F. M., & Ross, D. (1990). Industrial market structure and economic performance. University of
Illinois at Urbana-Champaign's Academy for entrepreneurial leadership historical research reference in
entrepreneurship.

Dr. Olivia Mesta. (2013, June 26). Competitive Forces. Week 3.3 competitive forces. Retrieved January 3,
2023, from https://contensis.uwaterloo.ca/sites/courses-archive/1191/ECON-344-ARBUS-302/lecture-
content/module-1/week-3-3.aspx

Loury, G. C. (1979). Market structure and innovation. The quarterly journal of economics, 395-410.