Competitors And Type Of Market

Question 1

Define competition

Answer 1

Rivalry amongst sellers

Question 2

Define a market

Answer 2

A situation where buyers and sellers are in contact

Question 3

What is a non physical market?

Answer 3

A market in which buyers purchase items over the internet, otherwise known as a virtual market.

Question 4

What is a physical market?

Answer 4

A physical market is a brick and mortar store where buyers and sellers meet.

Question 5

Define market price

Answer 5

A range in which consumers are willing to buy a product within

Question 6

Define markup

Answer 6

Difference between cost of producing product and price at which it is sold

Question 7

How do you work out markup?

Answer 7

Price it is sold at - cost of producing product

Question 8

Define a competitive market

Answer 8

A market with a large amount of sellers

Question 9

Define a monopoly market

Answer 9

A market dominated by one seller or a market containing a seller with a market share of 25% or more

Question 10

Name two characteristics of a competitive market

Answer 10

Large amount of firms

Low prices

Question 11

Name two characteristics of a monopoly market

Answer 11

Low amount of firms

High prices

Question 12

Name an example of a competitive market

Answer 12

Travelex

Question 13

Name an example of a monopoly market

Answer 13

Tesco

Question 14

Define monopolistic competition

Answer 14

A market structure with many competing firms each of whom supplies a slightly differentiated product

Question 15

Define an oligopoly

Answer 15

An oligopoly exists when a market is dominated by a thew firms

Question 16

Name two characteristics of monopolistic competition

Answer 16

Lots of firms

Fair prices

Question 17

How do businesses in monopolistic competition usually compete?

Answer 17

Non price differences

Question 18

Name two characteristics of an oligopoly

Answer 18

Few firms

Similar but high prices

Question 19

Name an example of monopolistic competition

Answer 19

Taxi services

Question 20

Name an example of an oligopoly

Answer 20

Mobile phone services

Question 21

What is collusion?

Answer 21

Rival companies co-operate for their mutual benefit, often price levels

Question 22

How do you define market size?

Answer 22

A collective value of goods / services that customers purchase with in a market.

Question 23

Define market growth

Answer 23

The percentage growth in market size measured over a specific period

Question 24

Define market share

Answer 24

The percentage of total sales (by value) that a business has in a specific market

Question 25

How do you increase market share?

Answer 25

Be aware of customer needs and meet them
Sell more to existing customers
Find out why previous customers no longer use your product
Have a clear marketing plan
Use a variety of marketing techniques
Merge