Market Structure & Perfect Competition Flashcards
1
Q
When looking at market structure what are we looking at?
A
Looking at firms behave under different market conditions
2
Q
What are girls assumed to be?
A
Profit maximisers
3
Q
Define Market Structure.
A
Identifies how a market is made up in terms of: • Number of forms in the industry • Nature of the product produced • Degree of monopoly power each firm has • Firm Behaviour - pricing strategies, non-price competition, output levels. • Barriers to entry and exit • Profit levels • How much a firm can influence price
