Perfect Competition, Imperfectly Competition, Imperfectly Competitive Markets And Monopoly Flashcards
What is anti competitive behaviour?
Business strategies employed to deliberately limit contestability within markets
What are artificial barrier to entry?
Barrie’s to market entry that are man made
What does break even mean?
The same as normal profit
What does cartel mean?
Formed by groups of producers when they illegally decide to collide and not compete
What is collective bargaining?
When the members of a union act as a unit to increase bargaining power when negotiating with employers
What is collusion?
Illegal cooperation between multiple firms, forming a cartel
What is a concentrated market?
A market with very few firms
What is a concentration ratio?
The total market share of the leading firms in an industry; these firms output as a percentage of total output
What is consumer surplus?
Difference between the prices consumers are willing to pay and the prices they actually pay
What is contestability?
Ease with which competitors can enter a market
What is deadweight loss?
Loss of social welfare derived from economic activity
What does demerger mean?
When a firm sells parts of its business to create separate smaller firms
What is divorce of ownership and control?
The process in which owners become increasingly sepersted from those managing the business
What is a duopoly?
A market dominated by two businesses
What is duopsony?
Two major buyers of a good or service in a market
What is dynamic efficiency?
Improvements to efficiency in the long run, brought about by investment into research and development
What is a entry barrier?
Make it impossible/more difficult for firms to enter a market
What are exit barriers?
Make it impossible/more difficult for firms to exit a market
What is game theory?
Where there are two or more interacting decision makers and different decisions lead to differing outcomes
What is a hit and run?
Firms enter a market, make supernormal profits, then leave; possible because of low barriers to entry and exit