Competition Flashcards
1
Q
What are the three types of competition?
A
1.Perfect = compete on an equal basis through pretty much identical products and prices
2. Oligopoly = Small number of businesses/firms dominate the market and charge similar prices
3. Monopoly = one business has complete control over its market with no competition
2
Q
What is meant by a highly competitive market?
A
Has a high number of businesses that are offering similar goods or services
3
Q
Why might a large Market have lots of competition?
A
Due to more potential customers, more businesses are attracted to these markets
