Th3: Definitions 3 Flashcards
Minimum efficient scale
the lowest level of output necessary to fully exploit economies of scale
Minimum wage
a floor wage which people cannot earn below
Monopolistic competition
where there are a large number of buyers and sellers who are relatively small and act independently, selling non-homogeneous goods
Monopoly
a single seller in a market
Monopsony
a single buyer in the market
N-firm concentration ratio
the percentage of market share held by the ānā biggest firms
Nationalisation
when a private sector company or industry is brought under state control, to be owned and managed by the government
Natural monopoly
where economies of scale are so large that not even a single producer is able to fully exploit them - it is more efficient for there to be a monopoly than many sellers
Non-collusive oligopoly
when firms in an oligopoly compete against each other, rather than making agreements to reduce competition
Normal profit
the minimum reward required to keep entrepreneurs supplying their enterprise, the return sufficient to keep the factors of production committed to the business
TC = TR
Not-for-profit business
where firms are run in order to maximise social welfare and help individuals and groups - any profit they do make is used to support their aims
Occupational mobility of labour
the ease and speed at which labour can move from one type of job to another
Oligopoly
where a few firms dominate the market and have the majority of market share - they act interdependently
Organic growth
where firms grow by increasing their output
Overt collusion
collusion where firms come to a formal agreement, for example a cartel
