Market Dominance Flashcards
1
Q
Market Dominance
A
A measure of market shared compared to competitors.
2
Q
Market Power
A
The ability of a firm to influence or control the terms and conditions (i.e. higher prices) on which goods are bought and sold.
3
Q
Mergers
A
Two companies join together to from a new larger business.
4
Q
Acquisitions/Takeovers
A
Where control of another company is achieved by buying a majority of its shares (50%).
5
Q
Economies Of Scale
A
Unit cost goes down and output goes up. Businesses benefit from this when they are large.
6
Q
Organic Growth
A
Growth from within the business and its operations. Businesses don’t rely on mergers and takeovers.
