Original Text
One of the companies is US Steel, which is the world's 13th largest producer of steel, according to the World Steel Association. It maintains a significant market share in terms of steel production and sales. Another business is the use of smartphone and computer operating systems. There has been a path of domination of Apple iOS and Google Android for smartphone operating systems, as well as Apple and Windows overshadowing computer operating systems. The other business is the most common street food vendor located in a town near the border of Mexico whereby the prices are known to anyone being free to join the market to sell the same commodities at the same quality level. This document provides the classification of the above business along with the attached reasons.
Market Structure and Rationale
The US steel company fits in the monopolistic competition market structure classification. The usage of the operating systems for the smartphones and the computers is an oligopoly market structure. The street food vendor at the border town of Mexico is in the perfect competition market structure.
Classification of US Steel
The reason for the classification of US steel into the monopolistic completion is that it has a market share with its products being differentiated. It has no price competition, although there are the regulations fixed by the government making the company have some control over the price (Bernanke, Antonovics & Frank, 2015, P. 9).
Classification of Operating Systems
The reasons for the classification of the operating systems as oligopoly is that there are only two producers for the smartphone OS and two for the computer OS. The products partly differentiated serving the same purpose with them having mutual interdependence. Most of the programs and apps that are supported in one of the OS can be supported on the other.
Classification of Street Food Vendor
The reasons for the classification of the street food vendor into the perfect competition market structure is that knowledge, as regards the prices of commodities and the qualities of the products, is available to both buyers and sellers with no single business having the prime control over the prices (McConnell, Brue & Flynn, 2012, P.39). No barriers to the entry and exit of business with everyone wishing to maximize profit. The goods are homogeneous with too many parties to take control of the market. Transportation costs are minimal, and so is the government involvement (Mandel, 2012, P. 16).
References
Bernanke, B., Antonovics, K., & Frank, R. (2015). Principles of macroeconomics. McGraw-Hill Higher Education.
Mandel, M. (2012). Economics: The Basics. McGraw-Hill Higher Education.
McConnell, C., Brue, S., & Flynn, S. (2012). Economics, Brief Edition. McGraw-Hill Higher Education.
