Yr 2 Market Structure Flashcards

1
Q

Definition of market structure?

A

Description of the characteristics that buyers encounter and sellers face in a given industry - which could change over time

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2
Q

Characteristics of the Market structure consist of?

A

structure - affected by supply and demand :)
conduct - way firms compete. In isolation? or interdependent?
performance - do they want to profit maximize

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3
Q

Variables of market structure?

A
Number of firms
Power/quantity of buyers
profitability
nature of costs
consumer loyalty
market share of firms(total sales)
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