Market Structures Worksheet Review (taylor's version)

In the early 2000s, the CD production industry saw thousands of producers globally, from major companies to independent labels. The products, while similar, allowed for differentiation through packaging, bonus tracks, and exclusive content. Entry into the market was feasible for new artists and labels, despite the dominance of major labels in retail spaces. Prices varied widely, with major labels setting premium prices for popular artists, including Taylor Swift, while independent labels often priced CDs more modestly to attract buyers.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

For major music tours, such as Taylor Swift's, a few large companies dominate ticket sales, with one company often holding exclusive rights to sell tickets for many of the largest venues. These firms have significant control over prices, which can vary greatly based on demand, artist popularity, and venue size. Entry into this market is challenging due to contractual agreements between venues and ticketing companies, creating a barrier for new entrants.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Please draw & label the point where the price will always be in perfect competition.

The streaming service industry is characterized by a handful of large firms controlling a significant portion of the market. These platforms offer very similar products—music streaming services—with slight variations in user interface, exclusive content, and subscription models. Entry into this market is difficult due to the high costs of licensing music from labels and artists. Firms have some control over subscription pricing but compete aggressively for subscribers.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

The sound equipment manufacturing industry is diverse, with numerous producers ranging from high-end, specialized equipment makers to those producing budget-friendly consumer gear. While products serve the same basic function, there's significant differentiation in terms of quality, features, and brand reputation. New firms can enter the market, especially in niche segments. Prices are determined by quality and brand, with some firms commanding premium prices for professional-grade equipment.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

Taylor Swift's concert merchandise market is unique, with a single producer—Taylor Swift's brand—controlling all official merchandise. The products are highly differentiated, from clothing to limited-edition items, catering to a devoted fan base. Entry into the official merchandise market is impossible for external producers, and pricing is solely controlled by the brand, often reflecting a premium due to exclusivity.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

In a bustling city known for its vibrant music scene, numerous small businesses and individual entrepreneurs have started producing custom guitar picks for local musicians and concerts. These guitar picks are virtually identical in terms of material and functionality, differing only slightly in design. The market for these guitar picks is extensive, with thousands of guitarists—both amateur and professional—seeking affordable, quality picks for their performances.

The production process for these guitar picks is straightforward and inexpensive, allowing for easy entry and exit into the market. As a result, there are many producers and consumers in this space, each contributing to a highly competitive environment. Since the product is essentially a commodity, with each pick being almost identical in use and quality to another, producers have no control over the market price. Instead, prices are determined purely by supply and demand dynamics in the local music scene.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

The vinyl record industry has seen a resurgence, with numerous small and medium-sized companies producing records. There's significant product differentiation in terms of packaging, colored vinyl, and limited editions. New companies can enter the market to cater to niche audiences. Prices vary based on the rarity and desirability of the releases.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly

In some cases, a single streaming service secures exclusive rights to stream a popular artist's album for a limited time. This creates a temporary monopoly, with the service controlling access to the album. Entry into this exclusive agreement market is not feasible for competitors during the exclusivity period. The streaming service can leverage this exclusivity to attract new subscribers, affecting pricing strategies for subscriptions.

• Perfect Competition

• Monopolistic Competition

• Oligopoly

• Monopoly