Answer to Question #129287 in Microeconomics for Ntando

Question

Two firms dominate the cinema industry in South Africa: Ster‐Kinekor and Nu Metro. Although
these firms essentially offer a homogeneous product, each firm attempts to differentiate itself in
the eyes of customers.
Q.4.1 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 structure.
(4)
Q.4.2 Explain the concept of non‐price competition in the context of the cinema industry
using examples to illustrate your answer.
(6)
Q.4.3 Government may prevent possible abuse of market power by these firms within the
industry. How would the government achieve this? (5)

Answer 1

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