2.7. Market Structures Flashcards Preview

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Flashcards in 2.7. Market Structures Deck (11)
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1
Q

Types of Market Structures

A

1) Perfect competition: many small firms, no market power, identical products.
2) Monopolistic competition: many small firms, some market power, similar products.
3) Oligopoly: small number of large firms, substantial market power, identical or differentiated products.
4) Monopoly: one large firm, complete market power, unique product.

2
Q

Market Structures with Imperfect competition

A

all except perfect competition

3
Q

Comparing Market Structures (BBINNP)

A

1) Number / size of firms
2) Barriers to entry / exit
3) Nature of Product
4) Behaviour of Firms
5) Influence over prices
6) Profits

4
Q

Number / size of firms (Comparing Market Structures)

A
  • Market concentration

- Concentration ratios

5
Q

Barriers to entry / exit (Comparing Market Structures)

A
  • Start-up / capital costs
  • Sunk costs
  • Economies of scale
  • Legal barriers
  • Branding
  • Natural advantages
  • Anti-competitive pricing
  • Breaking contracts
  • Cost of worker redundancy
6
Q

Nature of Product (Comparing Market Structures)

A
  • Homogeneous (identical)
  • Differentiated / branded
  • Unique
7
Q

Behaviour of Firms (Comparing Market Structures)

A
  • Independent

- Interdependent

8
Q

Influence over prices (Comparing Market Structures)

A
  • Price taker

- Price maker

9
Q

Profits (Comparing Market Structures)

A
  • Normal
  • Abnormal
  • Subnormal
10
Q

Firm

A

the individual business

11
Q

Industry

A

a group of firms selling similar / identical products.