Competitive Environment Key Words Flashcards
1
Q
Barriers to entry
A
Obsticals new firms need to overcome to get into a new market.
2
Q
Cartel
A
A group of businesses which join together to agree on pricing and output in a market in an attempt to gain higher profits at the expense of the customer.
3
Q
Colluding
A
Where several businesses make agreements among themselves which benefits them at the expense of either rival businesses or customers.
4
Q
Market structures
A
The characteristics of a market, such as the size of the barriers to enter the market or whether they produce identical products, which determines the behaviour of the business within a market.
