Physical and Non Physical Markets

Question 1

What is a physical market?

Answer 1

A collection of businesses trading; shopping centre, market stalls, buyers and sellers in face to face contact

Question 2

What is a non physical market?

Answer 2

Where sellers compete with each other but do not meet or interact physically with buyers at all e.g currancy market, ebay

Question 3

Why have non physical markets grown?

Answer 3

• convenience
• globalisation
• can charge a higher price - shipping

Question 4

What is a market?

Answer 4

Any situation where buyers and sellers are in contact in order to establish a price

Question 5

What is a competitive market?

Answer 5

Large number of firms producing a similar product to meet the needs of a large number of consumers, firms have to accept market price, price competition

Question 6

What is a monopoly?

Answer 6

A market controlled by a single business e.g seven trent, can control prices, 25% or more market share

Question 7

What is a monopolistic competition?

Answer 7

Large number of businesses and a large number of consumers, products are similar, not much scope to raise prices, non price competition - branding

Question 8

What is an oligopolistic market?

Answer 8

A market dominated by few large firms, may be other smaller businesses copying the firms in terms of price, compete through non price competition

Question 9

What is market size?

Answer 9

The number of individuals in a certain market who are potential buyers or sellors of a product or service