Key Terms - Competitive Environment

Question 1

Barriers to entry

Answer 1

Factors that make it difficult or impossible for new firms to enter the market and compete with existing producers

Question 2

Cartel

Answer 2

Formed by colluding, a cartel is a group of businesses or organisations who have joined together to reduce competition

Question 3

Colluding

Answer 3

It is a form of anti-competitive behaviour when two or more businesses are joining together to work together unfairly and make agreements on prices in order to reduce competitiveness.

Question 4

Market structures

Answer 4

The characteristics of the market which determine the behaviour of businesses within the market. Such as the size of the barriers to entry to the market, the number of businesses in the market or whether they produce identical products,