Assignment 2

ECO 550

1. Describe the industry and explain the general pattern of change of the particular market model.

The restaurant Industry in Greenville, SC currently seems to be a monopolistic competition. Monopolistic Competition means that there are many small firms, no barriers of entry, each firm is convinced that their brand id better than the other and there is not a homogenius product. The pattern of change seems to be moving from left to right. Greenville started with a few restaurants and continues to grow each month. The more research that is done, the closer the scale is shifting from left to right.

Oligapoly means that few a few firms produce 80% of the market, products can be very different and strategic behavior is at play. Strategic behavior is at play...