Competition Flashcards
What is competition
Competition: Organisations selling products that are substitute goods, targeted at the same group of people.
What is monopoly competition
One firm dominated the market
Local train lines, Microsoft Windows, google
What is Oligopoly competition
A small number of large firms dominate the market
super markets, banks, cars, sportswear
What is Monopolistic competition
Many firms compete in the selling differentiated products
Hairdressers, electritions, fast food
What is Perfect competition
Many buyers and sellers in the market with no influence on market price
Fruit and veg, Forex market (foreign exchange)
How are costs impacted
Increased advertising spending
Need for research and development
Incentive to increase efficiency (how to drive down unit costs ect)
How is demand impacted
A wider range of choices for consumers
Better customer service
Lower prices
How does competition impact consumers
Consumers tend to benefit more from competition than businesses.
