Contextual examples micro Flashcards
1
Q
What is a contextual example for Oligopoly?
A
The UK new car market- 4 firm concentration ratio was 40% made up of Ford, Vauxhall, Audi, Volkswagen
2
Q
What is a suppliers’ fee contextual example?
A
Halford sales went up by 19.4%, they invested £100mill mostly into staff and training- wanted suppliers to provide a discount/ pay a fee to support that investment as the suppliers also benefit from it
3
Q
What is a contextual example for perfect competition?
A
The uranium market- lots of buyers and seller, homogenous product, perfect knowledge, price takers etc
4
Q
What is a gov failure contextual example?
A
Venezuela subsidising petrol- high inflation and smuggling petrol into Colombia
