Flashcards
7 ~ Market Structure
Cards in this deck (13)
- 1Describe a competitive market (5)many sellers, none have dominant market share
sellers producer slightly diff products (so high XED)
customer loyalty is fairly weak
each seller has good access to new tech
customers+producers have full info - 2The more competitive a market...the more allocatively efficient is it
- 3What are monopoly's?firms that have more than 25% of market share
- 4What is an oligopolistic industry?where a few dominant firms together have 50% of market share
- 5How do monopolies develop?from the successful organic (internal growth) of a business through mergers and acquisitions (the integration of firms)
- 6What is the internal expansion of a business?when a firm increases generates higher sales and increased market share by exploiting economies of scale
- 7What are barriers to entry?the ways that potential competitors are blocked so that monopoly's can enjoy higher profits in the LR
- 8What are 3 examples of barriers to entry?patents
advertising and marketing
brand proliferation - 9What are patents?legal property rights
- 10How do advertising an marketing act as barriers to entry?they develop customer loyalty
- 11How does brand proliferation act as a barrier to entry?in many industries, multi-product firms engaging in brand proliferation can give a false appearance of competition
- 12How does monopoly power = market failure?a monopoly makes higher profits at the expense of a loss of allocative efficiency
- 13What are the 3 potential benefits of monopoly?research and development spending
exploitation of economies of scale
monopolies and international competitiveness
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- AS - Level Economics (Microeconomics) Flashcards on 7 ~ Market Structure, created by Tara Pugal on 24/04/2016.
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- Tara Pugal
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