markets, market structures Flashcards
1
Q
what order does the sturctures go in?
A
perfect competion-monopolistic-opigopoly- monopoly
1
Q
what is perfect competition?
A
-no barriers for entry and exit
-the products are all the same
- similar prices throughout the market
- eg - selling carrots
2
Q
what is monopolistic competion?
A
- large numbers of buyers and sellers
- products are differentiated
- few barriers for entry and exit
- eg - greggs, original cottage, fish and chip shop
3
Q
what is opigopoly competition?
A
- top 5 firms hold market share, usually around 60 percent
- differnetiated products
- interdependant
- price wars
4
Q
what is a cartel?
A
businesses work togehter, eg - Tesco, asda, sainsburys , to fix prices
5
Q
what is a monopoly?
A
- one business has control over the entire market
- it is highly unrealisitc
- eg - britigh gas, royal mail
6
Q
what is the benefit to customers of a opigopoly?
A
- large range of products that are differntiated to meet all needs and requirements
- lower prices due to businesses benefiting from economies of scale
