competitive markets Flashcards
1
Q
competitive market
A
rivalry between firms producing the same goods in the same markwt
2
Q
features of competitive markets
A
firms sell substitutes
large number of buyers and sellers
low barriers to entry
individual firms have no influence on prices
3
Q
effects of competitive markets
A
- lower price
- better quality
3.low profits
4 more choices
4
Q
monopoly
A
the situation where there is only one producer and seller of a particular good or service
5
Q
characteristics of monopoly
A
no competition
high barriers to enter
firms enjoy abnormal profit
seller controls the price
6
Q
advantages
A
economies of scale
avoids duplication which reduces wastage of resources
