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
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
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)
