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Operations Decision 2

Since there are many frozen food and low calorie microwavable food options that are now available in the market there are a number of competition among businesses. Just a few years ago individuals did not purchase microwavable foods, however today with so many weight watching products that promises individuals to lose weight and to be healthier there is even more competition. These products most require just to be warmed up and eaten, they therefore they are replacing the traditional cooking.

Market Structure is different businesses that make the same or similar products. The market structure will depend on the number of business and how they compete. Economists make sure that there will be a number of different buyers and sellers in the marketplace, which means that there will be competition in the market. This will allow prices to change due to the changes in supply & demand. For just about every product that is produced there is a substitute, which means when a product becomes too expensive for a buyer they can choose the substitute instead. However, the will be some products that there will not be a substitutes which means that there will be no competition, which means that the market will be able to control price and the consumer will have little influence over the price. The supplier is not the only one that has the power to influence the price the consumer can as well.

The four basic market structures are as follows Monopoly which is a market structure in that it will only be one product or seller for the product. In order into this type of business would be restricted due to high costs that could be economic, it could be social or it could be political. For example would be that the government can create a monopoly over any industry that it wants control of, such as electricity. The second reason for the barriers against entry into a monopolistic industry is that in time, the entity can have the exclusive rights to a...