Markets Flashcards
1
Q
Monopoly
A
1 firm dominates In the uk, 25% market share Higher prices Lower quality Control supply Can afford to be inefficient
2
Q
Competitive
A
Lots of firms compete to make sales Lower priced goods Have to be higher quality Lots of advertising Buyer had control Must be efficient
3
Q
Monopolistic competition
A
Competitive market - several firms within
New firms can enter because low barriers to entry
Products are differentiated
4
Q
What is a market?
A
A place where buyers and sellers meet to buy and sell goods and products
5
Q
Measuring market share?
A
Company sales➗total market sales ✖️ 100
6
Q
Measuring market growth?
A
Difference in sales ➗ original sales ✖️ 100
7
Q
Ways to increase market share?
A
Branding Advertising and promotion USP quality Add ons Joint venture Take over Merger
8
Q
Why do some firms want to remain small?
A
High cost of expansive They are content Can stay focused May not have resources Less risks Less effort
9
Q
Barriers to entry?
A
Copyright
Reputation
Markets too small to have more than one supplier
Quality of products
Economies of scale - lower costs so you can lower prices of products
May not have funds - cots too high
10
Q
Barriers to exit?
A
Sunk costs - ie. Advertising money you need to get back Timing of leaving Demand of product too great May have a contract to fulfil Costs greater coming out than staying in
11
Q
Oligopoly
A
4 or 5 firms dominate Good quality products Differentiated products to stand out Price setters - has to stay stable Lots of advertising
12
Q
What are the three sectors of markets?
A
- Demographic
- Geographic
- Psychographic (social)
