Competitors And Type Of Market Flashcards
Define competition
Rivalry amongst sellers
Define a market
A situation where buyers and sellers are in contact
What is a non physical market?
A market in which buyers purchase items over the internet, otherwise known as a virtual market.
What is a physical market?
A physical market is a brick and mortar store where buyers and sellers meet.
Define market price
A range in which consumers are willing to buy a product within
Define markup
Difference between cost of producing product and price at which it is sold
How do you work out markup?
Price it is sold at - cost of producing product
Define a competitive market
A market with a large amount of sellers
Define a monopoly market
A market dominated by one seller or a market containing a seller with a market share of 25% or more
Name two characteristics of a competitive market
Large amount of firms
Low prices
Name two characteristics of a monopoly market
Low amount of firms
High prices
Name an example of a competitive market
Travelex
Name an example of a monopoly market
Tesco
Define monopolistic competition
A market structure with many competing firms each of whom supplies a slightly differentiated product
Define an oligopoly
An oligopoly exists when a market is dominated by a thew firms
Name two characteristics of monopolistic competition
Lots of firms
Fair prices
How do businesses in monopolistic competition usually compete?
Non price differences
Name two characteristics of an oligopoly
Few firms
Similar but high prices
Name an example of monopolistic competition
Taxi services
Name an example of an oligopoly
Mobile phone services
What is collusion?
Rival companies co-operate for their mutual benefit, often price levels
How do you define market size?
A collective value of goods / services that customers purchase with in a market.
Define market growth
The percentage growth in market size measured over a specific period
Define market share
The percentage of total sales (by value) that a business has in a specific market
