Please answer the questions below:
1. Describe how a product might evolve from one market structure to another and what that means as to the price, competition and number for firms producing that product.
3. Do you believe Americans in general are knowledgeable enough about economics? Why or why not?
1. A product might evolve from one market structure to another and the usual path that products take is one from a monopoly to a competitive market. When a company discovers a new product it gets a patent on it so that no one else can produce the same product without getting a license from the patent holder. Thus, the company holding the patent can effectively control the amount that is supplied in the market. Prices of such products tend to be high.
With time you tend to get similar products, or if not that then the patent expires in a set time. Once the patent expires other companies can produce the same product without any explicit license. The product is now more standardized and a lot more companies can enter the market.
This in turn ...
Changes among market structures are studied briefly.