Answer to Question #128051 in Microeconomics for Mpho

Question

Identify the type of market/industry structure that is applicable to the cinema industry in South Africa.justify your answer by referring to the main characteristics of this market

Answer 1

It is an oligopoly type of market structure known as duopoly. The two firms that dominate the cinema industry in South Africa are Ster‐Kinekor and Nu Metro. Although these firms essentially offer a homogeneous product, each firm attempts to differentiate itself in the eyes of customers.