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OCR Business > Topic Three, Part 1 - Markets > Flashcards

Topic Three, Part 1 - Markets Flashcards

1
Q

What is a market?

A

A ‘place’ where buyers and sellers get together to trade

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2
Q

What is a physical market?

A

buyers and sellers meet face-to-face

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3
Q

What is a non-physical market?

A

buyers and sellers do not meet face-to-face

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4
Q

What is a digital market?

A

Online market

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5
Q

What is a Market structure?

A

Behaviour and amount of firms in the market

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6
Q

What is perfect competition?

A

a market structure where many firms offer a homogeneous product

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7
Q

What is monopolistic competition

A

Products are differentiated therefore not perfect substitute’s

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8
Q

What is a oligopoly?

A

A market is shared by a small number of sellers/producers

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9
Q

What is a monopoly?

A

/

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10
Q

What is a Price taker?

A

A firm that has no influence on market price

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11
Q

What is a Price maker?

A

A firm that has the influence to set market price

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12
Q

What is a Competitive market?

A

Any market where firms strive to beat rivals

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13
Q

What is a Concentrated market?

A

Only a small number of firms operate

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14
Q

What is Imperfect competition?

A

Every market type between perfect competition and monopoly

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15
Q

What is Pure monopoly?

A

Only one seller in the market

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16
Q

What is Monopoly power?

A

A seller has enough power to be a price maker

17
Q

Factors which influence monopoly power?

A
  • Competitors
  • Advertising
  • Product differentiation
18
Q

What is market dominance?

A

How strong a firms market share is compared to rivals

19
Q

How can firms try to increase market share?

A
  • catering to customers’ needs
  • create new needs and the demand for them
  • promotions
20
Q

What are examples of natural/innocent barriers?

A
  • start-up costs
  • Production costs are higher for new entrants
  • will have no brand loyalty
21
Q

What are examples of artificial/man-made barriers?

A
  • patents prevent entry for certain products

- Predatory pricing by existing f9rms

22
Q

What are examples of Barriers to market EXIT?

A
  • Selling equipment
  • Paying workers redundancy payments
  • Breaking contracts
23
Q

What is Market growth?

A

The market grows when an economy is doing well

24
Q

What is Organic growth of a firm?

A

the market isn’t growing but a firm is becoming more dominant in the market.

25
Q

What is a merger?

A

two companies decide to join together

26
Q

What is a takeover?

A

one company takes control of another by buying a majority stake in its ownership.

27
Q

What is the Competition and Markets Authority (CMA)?

A

responsible to weigh up whether a merger is in the public interest

28
Q

What powers do the CMA have if the business is anti-competitive?

A
  • Fine the business up to 10% of their global turnover

- assist in lawsuits arising from the anti-competitive behaviour

OCR Business (72 decks)

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