Hi answer i and ii Transcribed Image Text: During the 1990s, the Jamaican hotel industry was one dominated by three players: Sandals, RIU and Grande

Hi answer i and ii Transcribed Image Text: During the 1990s, the Jamaican hotel industry was one dominated by three players:
Sandals, RIU and Grande Bahia. The three firms have further distinguished
themselves in niche categories such that Sandals offers discounts for children
under thirteen, RIU is an adult-only hotel and Grand Bahia caters specifically to
couples. It is an increasingly competitive market whereby firms are fighting just to
maintain current market share. However, when new firms attempted to enter the
market, the main players had an unspoken agreement to keep prices within a
certain range to ensure they maintained their stronghold in the industry.
Since the early 2000s, there has been a rise in the availability boutique hotels as
well as bookings via Airbnb. As a result, the three main, players have seen a
reduction in their market share as tourists have gravitated to these more
cost-effective options. Transcribed Image Text: i. State what market structure exists in the hotel industry in Jamaica during the
1990s. Can excess profit be earned in this industry in the long run. Explain.
ii. How would you describe the economic phenomena that has occurred through
the unspoken agreement between the main players in the hotel industry? Explain
ONE advantage and ONE disadvantage of this phenomenon.
iii. State what market structure exists in Jamaica since the early 2000s. Explain
if excess profit will exist in the long run.
iv. Illustrate and describe how equilibrium demand and supply is determined for
the hotel industry in the long run since the early 2000s.

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