ECO 550 Week 5 Discussion 1 

ECO 550 Week 5 Discussion 1 Applications of Cost Theory Please respond to the following:
•	* Answer the following discussions based on the Katrina- Candies scenario:
o	From the scenario for Katrina- Candies, determine the appropriate type of market structure for the situation in question. Cite at least four (4) defining characteristics that have helped you reach this decision regarding the appropriateness of the chosen structure.
o	Recommend two (2) kinds of pricing and output strategies that Katrina- Candies should use to reach the goal of profit maximization. Suggest key modifications that Katrina- Candies should make in order to maintain a competitive advantage when new entrants enter the market. Provide a rationale for your suggestions.

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