ROLE OF GOVERNMENT slp Coursework Example | Topics and Well Written Essays - 750 words

ROLE OF GOVERNMENT slp - Coursework Example Discussion Market Structure Market structure is basically the environment, within which a firm produces and sell its product. A market structure is basically selected on the basis of the number of similar firms in the market, the ease of entry and exit of firms and the degree of product differentiation. Based on the definition, the market structures are mainly divided into various forms. Four of the most common form of market structure is listed here under: Monopolistic market structure: In this form of market structure there exist numerous numbers of firms each having a small proportion of the market share with slight differentiation in the product manufactured by each firm. Oligopoly: In this form of market structure small number of firms together controls the majority of the markets share. Monopoly: In this form of market structure the entire market is controlled by a single producer. Perfect Competition: Perfect competitions are a market structure where there is no barrier to ent ry and where unlimited number of buyers and producers do exist. Modern market is considered to be a perfect competition from of market structure (East Tennessee State University, n.d.). ... mpetitors such as Burger King, KFC, and Subway among others and is considered to be one of the most preferred brand among other fast food chain business (Kew, 2013). Role of Government Supporting the Fast Food Industry Fast Food Industry is considered to be one of the leading industries that are expanding at rapid speed. The role of government relating to the fast food industry can be witnessed from the past. It has been viewed that during the initial stage of development of the fast food industry, the government of different countries helped the particular sector to diversify in their country by providing them license and work permit. It is also worth mentioning that the different standards set by the government also helps the industry to set standards, thereby assisting them to produce quality products which results in attracting more customers. Additionally, it has also been observed that the FDI rate for fast food industry is considerably low in comparison to other industrial sec tors in different countries. In this stand, the cash inflow for the fast food sectors reduces, which result in the increase of the cost of the products. In this aspect, such situations are usually mitigated by governmental strategies and interference (Makki, Somwaru and Bolling, n.d.; Food Authority, n.d.). Patent Patent in general is the right given to a producer by the government that restricts other companies or business to produce similar products. It has been viewed there exist two form of patent one with an time limit that restricts similar firms to produce the product within the speculated time mentioned and the other form of patents where the company are the sole owner the product i.e. no other firm can produce similar product. With reference to the mentioned scenario it can be