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The Case:

The processed food industry in Pakistan has made significant progress in recent years. The industry is now focusing not only on traditional processed food items (e.g., cereal, biscuits, jam, pickles, juices, spices, etc.) but also on value added products, such as frozen ready-to-cook/fully cooked food, healthier snacks, dressing and sauces, processed meat and poultry. A large number of firms have come up in the market to cater the rapid changing needs of the customers. Despite of huge competition, this industry has huge potential to generate profits due to high demand of the customers.


Being a student of economics, analyze the topics of market structures carefully and identify the market structure category in which processed food industry fall. Justify your answer by applying the characteristics of that market structure on the given industry.

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Replies to This Discussion

have u find solution. plz share if u find?

Idea Solution ECO-401 GDB-1

in the above case Perfect competition market structure employed because there are large no of buyers and sellers are involved.The characteristics of perfect competition as under.

1.    Large Number of Buyers and Sellers

2.   Homogeneity of the Product

3.  Free Entry and Exit of Firms

4. Perfect Mobility of the Factors of Production and Goods

5.Absence of Price Control

6. Perfect Competition among Buyers and Sellers

7.Absence of Transport Cost

8. One Price of the Commodity

9. Independent Relationship between Buyers and Sellers

10. Perfect Knowledge of the Market


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