As shown in the I Love Lucy video clip, A Little Bit of Cuba and a Big Hunk of America are both in the restaurant market. Imagine the kind of market structure that restaurants in general operate in.
a. Using the table provided in the AVP describing the characteristics of the different market structures, classify the market structure that restaurants in general operate in. Explain your reasoning.
b. Choose a different firm from a different market structure and explain the characteristics of that market. It is best to go with a firm you frequent or are familiar with so you can speak from your own personal experiences. Note: Make sure that in parts a. and b. you described how competition affects the buyers and sellers involved in these market structures.
I Love Lucy
Drunk customer: I’d like to report a missing brain. Lucy: This isn’t a bar, it’s a diner. We serve food here. Drunk customer: Food? Fred: Yeah, how about something to eat? Ricky: Yeah, right over here, sir. Drunk customer: I’ll drink to that. All: Right here, right here. Right here, mister, right here. Lucy: Mister, mister… Ethel: Mister, mister… Fred: Ethel, we’re trying to get him over here, not drive him away. Ethel: Mister, best hamburgers in town, fifteen cents! Drunk customer: Well, that sounds pretty good. Lucy: Look mister, fourteen cents. Drunk customer: Well… I like to save a penny when I can. Lucy: That’s right. Sit right down, we’ll get it for you right away. Ethel: Mister, thirteen cents. Lucy: Look mister, ten cents. Ethel: Five cents! Lucy: Four! Ethel: Three! Lucy: Two! Ethel: One! One cent hamburgers! Fred: Ethel, are you losing your mind? Ethel: Well, I didn’t want them to get him. Fred: One cent hamburgers… Drunk customers: I’d like a hundred hamburgers. [Laughing] Ethel: I’m sorry, we’re all out of hamburgers.