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EOC401 GDB Spring 2019 Solution & Discussion

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ECO401 Market Structure GDB last date 24-07-2019

The textile industry in Pakistan is growing over the time due to the modernization, high standards of living and increasing demand for good material at reasonable price. Many fabric brands like as Gul Ahmed, Sana Safinaz, Warda, Nadia Hussain, Firdous Lawn, Bareeze Lawn, Khaadi, Kayseria, Nishat and many others jointly make the textile industry in Pakistan. As there are more than 50 top fabric brands in Pakistan which are concerned with design, production and distribution of yarn, cloth and clothing but in the face of this high competition, Khaadi is efficacious enough to capture the enormous market share and profit. It has specialized in hand-woven products and other textiles. It has 45 branches working across Pakistan. Estimated annual revenue of Khaadi is 100 Million $.

Being a student of economics, you’re required to identify the market structure category in which this Khaadi brand falls. Justify your answer by applying any two key characteristics of that market structure on the given industry.

ECO401 GDB 1 Solution spring 2019

Market Structures
Perfect Competition.
' Monopoly.
Monopolistic Competition. Oligopoly.

PERFECT COMPETITION
Firms price takers.
Homogeneous Products.
Perfect information.
No barriers to entry.

MONOPOLY
Single producer in the market.
Firm can raise prices of their products.
Firm have monopoly to produce the products.
Firms has control the supply of products.

MONOPOLISTIC COMPETITION

Large no of buyers are exist in the market.
Firms price takers.
No barriers to entry.
the company a certain amount of influence over the market; because of brand loyalty.

OLIGOPOLY

Barriers to entry. (Monopoly)
Different Products (Monopolistic Competition)
Many firm are in the market. (PerfectCompetition)

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brother ye solution correct nhi hy srf us ek market structure ko define krna hy jis me khadi fall krta ho 

ECO401 GDB Solution Spring 2019

ECO401 GDB Solution Spring 2019

ye full likhnii hai

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