Market Structures

Question 1

Competitive market features

Answer 1

There are a lot to business

The prices are normally lower

Question 2

Competitive market

Answer 2

A market in which their is a large number of sellers
Low barriers Of entry

Business in this market normally compete for price

Question 3

Monopoly

Answer 3

A market which is dominant By 1 seller

Cma describes it as a business which has 25% of a market share

Question 4

Monopoly feature

Answer 4

Only 1 business

Higher prices (usually not normally)
They have high barriers to entry

Question 5

Oligopolies

Answer 5

Exists in a market where a market is dominated by a few firms

Question 6

Oligopoly features

Answer 6

Products and prices are very similar
Compete for non price differences
Collusions can happen
Some economies of scale

Question 7

Collisions

Answer 7

They take place when rival companies cooperate for benefit.

2 or more business together to influence production or price levels

Question 8

Monopolistic

Answer 8

A market structure with many competitive firms each whom supply a slightly differentiated product

Question 9

Monopolist features

Answer 9

Several firms
Lower prices
Non price differences