1.5.1 Market structures

Question 2

market structure definition

Answer 2

no. and size of firms within a market for a particular good or service

Question 3

spectrum of compotition

Answer 3

perf comp –> monopolstic comp –> origopoly –> monopoly

Question 4

perfectly comp market

Answer 4

• lots of small businesses selling identical products
• e.g. small farmer selling grain - identical, no difference
• few if any entry barriers

Question 5

monopolistic comp

Answer 5

• lots of comp
• e.g. restaurants, no chain is dominant, - hair salons, clothing brands

Question 6

origopoly

Answer 6

• few large firms dominate market e.g. banks - barclays, santan, natwest, - mobile networks, cars

Question 7

monopoly

Answer 7

• econ def = one firm in market
• legal def = 25% market share
• e.g. royal mail for letters

Question 8

imperfect comp

Answer 8

any market structure that is not in perfect competition

Question 9

pure monopoly

Answer 9

only one firm supplies market

Question 10

3 P’s

Answer 10

1. price
2. production
3. revenue