Definitions Flashcards
1
Q
Perfect competition
A
Market with many buyers and sellers
2
Q
Monopolistic competition
A
Imperfect competition with many firms
3
Q
Oligopoly
A
Imperfect competition among a few firms
4
Q
Duopoly
A
2 firms
5
Q
Monopoly
A
1 firm
6
Q
Market share
A
Proportion of sales in a market
7
Q
Hit and run entry
A
When firms renter a market to make ecnomics profit and leave once it’s been competed away
8
Q
Competition policy
A
Aimed to reducing monopoly power in order to protect consumers
9
Q
Competition policy
A
Policy that the government uses to promote competition in market and protect consumer by preventing abuses of market power
E.g regulation, subsidies reducing regulation and increasing licenses
