Matket Structures Flashcards
Whats a market
Any situation where buyers and sellers are in contact yo establish a pirce
What are the advantages of a physical market for a customer
Able to see the product and feel quality
Able to ask for help or advice
Experience of shopping
What are the advantages of a physical market for the buyer
Able to see the product and feel quality
Able to ask for help or advice
Experience of shopping
What are the disadvantages of a physical market for the buyer
Less choice or variety
May have to travel
Shops close and may not be available all the time
What are the advantages of a non physical market for the buyer
Convenience with not having to move
Open all the time
What sre the disadvantages of a non physical market for the buyer
No experience involved
Can’t see of feel product
May have to wait and pay for delivery
What are the advantages of a physical market for the seller
Able to persuade customers to buy more
No time or money spent on delivery
What are the disadvantages of a physical market for the seller
Bills associated with a physical store- rent - electricity
Staff need to be payed
What are the advantages of a non ‘physical market for the seller
Less overhead
Advertisements are further reaching
What are the advantages of a non ‘physical market for the seller
Less overhead
Advertisements are further reaching
What are the disadvantages for a non physical market for the seller
Pay for website upkeep
What is a competitive market
A market with large numbers of competitors producing a similar product or service
What do businesses in the competitive market compete on
Businesses in the competitive market compete on price
How much ability do firms in a competitive market have in controlling price
None- they compete on price
What are the barriers to entry in a competitive market
None- minimal barriers to entry
What are the barriers to entry in a competitive market
None- minimal barriers to entry
How many firms are in a competitive market
A large number of firms
How many firms are in a competitive market
A large number of firms
How much product differentiation I’d there in a competitive market with some examples
Very little - almost identical products
Farm and dairy
What is a monopoly
When one company dominates the whole market - 25 percent or more
What is a monopoly
When one company dominates the whole market - 25 percent or more
How much ability does a monopoly have on controlling price
High ability to control price as they can set market price
How much ability does a monopoly have on controlling price
High ability to control price as they can set market price
What’s the disadvantages of a monopoly
Little innovation or incentive to provide good quality services
What’s the disadvantages of a monopoly
Little innovation or incentive to provide good quality services
What are the barriers to entry in a monopoly
The barriers to entry are subject to government regulation
What are examples of a firm in a momopoly
Gas , oil
What are examples of a firm in a momopoly
Gas , oil
What’s a monopolistic competition market
Where there are many firms - each of whom provide a slightly different product
What is the firms ability to control price in a monopolistic competition market
There is limited ability to control price
What are rhe barriers to entry in a monopolistic competition market
Limited barriers to entry like economies of scale
What are rhe barriers to entry in a monopolistic competition market
Limited barriers to entry like economies of scale
How much product differentiation if there in a monopolistic competition market
There is little product differentiation with an emphasis on showing perceived differences such as designs on a t shirt
What is an oligopoly
Where few large firms dominated the market
What is an oligopoly
Where few large firms dominated the market
What is the firms ability to control price in an oligopolistic market
The firms have some ability yo control price in an oligopolistic market
What is the firms ability to control price in an oligopolistic market
The firms have some ability yo control price in an oligopolistic market
How many barriers to entry are there in an oligopolistic market
There are many barriers to entry in an oligopolistic market
How many barriers to entry are there in an oligopolistic market
There are many barriers to entry in an oligopolistic market
How much product differentiation are there in oligopolistic markets
There is some differences in products in oligopolistic markets
How much product differentiation are there in oligopolistic markets
There is some differences in products in oligopolistic markets
