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From the scenario, find out the appropriate kind of market structure for the condition in problem. Cite at least four defining features that have helped you reach this decision regarding the appropriateness of the selected structure. Propose two types of pricing and output strategies which Katrina's Candies must use to reach the goal of profit maximization. Propose key modifications which Katrina's Candies must make in order to maintain the competitive benefit when new entrants enter the market. Give a rationale for your suggestions. Imagine that you are a manager of a chemical company. An accident has occurred in which chemicals leaked to the ground water nearby. The community is unaware of the accident. Compare and contrast the primary costs included in cleaning up the water immediately (and thus confessing) versus hiding your culpability now and possibly paying more in the future. Predict the impact on profitability in both conditions. Justify your response.

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