Cameron Walker's project on the business structure of a sole proprietorship and its ability to function in the market structure of monopolistic competition.
Class, can any of you tell me how the business structure of a sole proprietorship is organized?
A sole proprietorship is a business that has one individual conducting all of the business. This is the most common form of business organization in the United States due to the ease of formation.
Very good! Now can any of you tell me how the market structure of monopolistic competition functions, and what characteristics distinguish it from other market structures?
Monopolistic competition is a market structure in which there are a few large firms that sell similar products but have their own differences in the products which means they have a monopoly over their specific product. This structure has low barriers of entry, and the competitors use non-price competition.
Excellent! Now, finally, how can a business that is structured as a sole proprietorship function in a market structure that is structured like a monopolistic competition market?
A sole proprietorship is able to function in a monopolistic competition market structure due to the business organization of the business which makes it more convenient than going to one of the monopolistic companies. The sole proprietorship will also more often than not, have far superior customer service and is usually a local business that is tailored to the community.