REFLECTIVE LEARNING SHEET The market has always been competitive due to entries of potential companies in a specific industry. However, due to the economic issues that our country has been suffering since the imposition of lockdowns all over Metro Manila, several industries have to cut down their operations before they lost all their assets and revenues. The Covid 19 pandemic has a great impact on business overall operations. In your assessment, what structures of business industries could sustain their operations in the long run? Is there any or specific structure which really can easily dominate and exit the market? Defend your answer.
Answer (1)
Industries with oligopoly and monopoly structures are more likely to sustain their operations in the long run. Oligopoly – Industries with few dominant players, such as telecommunications, banking, and oil, have strong market control, brand loyalty, and pricing power. They benefit from economies of scale, making it harder for new entrants to compete. Monopoly – Businesses with exclusive control over a product or service, such as utility companies, can easily sustain operations due to the lack of competition and government support. On the other hand, perfect competition and monopolistic competition structures face more difficulty in sustaining operations. Small businesses in these structures struggle with price wars, high operational costs, and lower brand differentiation, making them more vulnerable to economic crises. In terms of market dominance and exit, monopolies can dominate easily due to legal barriers and exclusive control, while businesses in perfect competition can exit quickly due to low entry and exit barriers.[tex][/tex]
