Market Structures

Question 1

What is the market structure concerned with?

Answer 1

It is concerned with how the market is organised

Question 2

More competition to less competition order
Spectrum

Answer 2

Perfect competition
Monopolistic competition
Oligopoly
Monopoly

Question 3

More concentration to less concentration order
Spectrum

Answer 3

Monopoly
Oligopoly
Monopolistic competition
Perfect competition

Question 4

The 3 characteristics for a market structure

Answer 4

The number of firms in the market
The degree of product differentiation
Ease of entry in to the market

Question 5

Explain the the number of firms characteristics?

Answer 5

The more firms there are, the more competitive the market is.

Question 6

Explain the degree of product differentiation?

Answer 6

The more differentiated the products, the less competitive the market.
Products can be differentiated based off: price, branding and quality

Question 7

Explain the ease of entry into the market?

Answer 7

This is the number and degree of Barries to entry.
The higher the Barries to entry the less competitive the market.