The economy today is made up of competition between many businesses. The level of competition between these business is determined by the market structure it’s shaped in. Each competition can be described through one of five market structures: pure competition, monopolistic competition, monopoly, oligopoly, and monopsony. The market structure a business is placed in depends on the amount of buyers and sellers in the market. The novel “The Grapes of Wrath” perfectly illustrates each one of these market structures. The structures are depicted through the struggles the farmers have to face with job scarcity and low wages, and also through the banks seeking to gain power over the farms and land.
A pure competitive market is when there many sellers …show more content…
Agriculture products like wheat or soy are a pure competition. There are many corporations in the food business that grow agricultural products. A lot of these corporations grow the same types of products, like beans, because they are well bought products. The good thing, for consumers, about a market in pure competition is that the consumer demand sets the market price. The suppliers and consumers are called the “price takers” because they take the price given. Since the market price is set by the consumer and supplier, it is set by supply and demand of the industry. In a pure competition, a firm maximizes its profit when marginal cost is equal to marginal rvenues, as shown in Figure …show more content…
First example, would be the Dust Bowl in the first chapter. As asaid in the book, in the 1930s there was a Dust Bowl that suffocated many farmers in the land which drove them to move away or starve. Today, California is still facing this issue. California is going through one of the worst drought in the last one hundred years. They are also facing countless wildfires because of the dry land. Not only does the book portray similar events, but also similar economic difficulties. For example, in the book we see the banks forcing farmers to sell off their lands in order to pay off their bad debt. Today, this is happening with big companies like Tyson, who conquer in the meat industry, and are controlling farmers with debt. “The Grapes of Wrath” really illustrated the economic power struggles in America and also the events that led to them. Although more than seventy years have passed since the book has been written, the events mentioned in the book are still manifesting
A pure competitive market is when there many sellers …show more content…
Agriculture products like wheat or soy are a pure competition. There are many corporations in the food business that grow agricultural products. A lot of these corporations grow the same types of products, like beans, because they are well bought products. The good thing, for consumers, about a market in pure competition is that the consumer demand sets the market price. The suppliers and consumers are called the “price takers” because they take the price given. Since the market price is set by the consumer and supplier, it is set by supply and demand of the industry. In a pure competition, a firm maximizes its profit when marginal cost is equal to marginal rvenues, as shown in Figure …show more content…
First example, would be the Dust Bowl in the first chapter. As asaid in the book, in the 1930s there was a Dust Bowl that suffocated many farmers in the land which drove them to move away or starve. Today, California is still facing this issue. California is going through one of the worst drought in the last one hundred years. They are also facing countless wildfires because of the dry land. Not only does the book portray similar events, but also similar economic difficulties. For example, in the book we see the banks forcing farmers to sell off their lands in order to pay off their bad debt. Today, this is happening with big companies like Tyson, who conquer in the meat industry, and are controlling farmers with debt. “The Grapes of Wrath” really illustrated the economic power struggles in America and also the events that led to them. Although more than seventy years have passed since the book has been written, the events mentioned in the book are still manifesting