Market Structures

Question 1

Monopoly is

Answer 1

One business in the market or one that has 25% market share

Question 2

Characteristics of monopoly

Answer 2

One firm dominates market
Pure monopoly =100% United utilities
25%+=legal monopoly investigated to see if abusing role
Not defo monopoly tho
High barriers to entry
Price makers

Question 3

Monopoly goods

Answer 3

Goods-large businesses can be more efficient ,charge lower economies of scale
Large profits ,can invest back into developing prods

Question 4

Monopoly bads

Answer 4

Face no comp,no incentive to pass costs savings on consumers ,reducing prices ,charge higher make more
Less efficient as without comp no incentive reduce costs n price

Question 5

Oligopoly is

Answer 5

A market where few businesses dominate market

Question 6

Monopolistic competition is

Answer 6

Many relatively small businesses
No dominant
Few barriers to enter
Some prods with some differences
Little control over prices.might be price takers

Question 7

Perfect comp

Answer 7

Many small firms produce same prods at similar price .able to enter n leave market
No low barriers to enter
Goods sold r homogous
Large N.o small businesses competing
No one business large enough to influence other ones