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    Market Structure Classification

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    Is Publix a monopolistic competition, oligopoly, monopoly, or perfect competition? Justify your classification of the firm and use the characteristics/features of the different market structure to determine which market structure to classify Publix.

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    Solution Preview

    -What market structure would this industry fall under?

    There are 4 choices: monopolistic competition, oligopoly, monopoly, or perfect competition. We will look at each type and see if Publix falls under one of these.

    Is it a perfect competition? Let's use the characteristics of perfect competition to decide:

    - A perfect competition usually contains infinite sellers and infinite buyers (of course, infinite does not actually mean infinite here, it just means there are a lot of buyers and sellers). In the case of grocery stores, we know that there are lots of buyers so this part is okay, but do we really have lots of sellers? There are definitely quite a few grocery stores in your city, but the ...

    Solution Summary

    This solution pinpoints the market structure of Publix and explains why this market structure is most fitting.