SAS13: Market Structure of Health Care Sector Flashcards
It is any place at which the individual needing medical and non-medical goods and services can communicate with the one producing medical and non-medical goods and services.
Market
It is any effective arrangement for bringing buyers and sellers together, not necessarily face to face.
Market
What are the 3 things to consider with Market?
Types of goods and services being traded, The number and size of buyers and sellers in the market, & The degree to which information can flow freely
What are the 4 types of market?
Perfect Competition, Monopolistic Competition, Oligopoly, & Monopoly
It is the degree of competition in the market and the way in which the market is organised.
Market Structure
This type of market has many competitors, who produce the same product and the market sets the price.
Perfect/Pure Competition
It is the principal aim of a firm.
Maximize profits
It is the demand curve faced by firms.
Horizontal
What are the 2 critical Assumptions that build Perfect Competition?
The behavior of an individual firm & the nature of an industry in which it operates
A market situation where in the conditions necessary for perfect competitions are not satisfied.
Imperfect Market
When the price of the product is constant, the change in total revenue is equal to price.
P = MR
The firm will maximize profits by producing at the level of output where Marginal Revenue is equal to Marginal Cost.
MR = MC
An example of Imperfect Market.
Monopolistic competition, oligopoly, or monopoly
This is a product market characterized by one seller, perfect barriers to entry, and has considerable control
over the price.
Monopoly
In Monopoly, Price Maker is called what?
The Monopolist
In Monopoly, Price Taker is considered what?
Firm
It is a greek word which means one.
Monos
It is greek word which means sell.
Polein
What are the 2 most common barriers to entry in Monopoly?
economies of scale and legal restrictions
What are the 2 extremes of the market structure continuum?
Perfect Competition & Pure Monopoly
This type of market is a cross between perfect competition and monopoly, having characteristics of
both.
Monopolistic Competition
This is how sellers differentiate their products.
Advertising
It creates imaginary or artificial wants, persuasive, not informative, business stealing with no benefits
to consumer and habit buying.
Advertising
This type of market has just a few, dominant sellers, homogeneous or differentiated product and
substantial barriers to entry.
Oligopoly
This market relies a lot on non-price competition.
Oligopoly
This refers to a market situation in which firms agree to cooperate with one another to behave as if they
were a single firm.
Cartel
