Key Words (Blackers And Slatters) Flashcards
(24 cards)
Market
A physical or non physical place where buyers and seller meet to establish a price
Competition
Rivalry amongst sellers
Market Growth
Markets expanding in size and getting bigger
Monopoly
A market that is dominated by one firm or has 25% + market share
E.g. Tesco, Netflix, Facebook
Monopolistic competition
A market with many competitors with slightly different products
E.g. restaurants, tv shows
Oligopoly
A market that is dominated by a few firms. They may have to force other sellers out the market
E.g. mobile phone market
Perfect competition
…
Barriers to entry
Factors from preventing a business from entering a market and competing
E.g.
Economies of scale
Unit costs fall as output rises
E.g. cutting a big team of workers down to see the productivity increase therefore output rise
Merger
Two companies join together to form a new larger business
Acquisition/takeover
Where the control of the company is achieved by buying majority shares 50% +
Market price
No such thing as market price but there is a price range that customers are willing or prepared to pay
Mark up
Difference between the cost of producing an item and the price of when it is sold. If market price rises so does mark up
Non priced differences
Always that businesses try to make their products/services differ from competitors in order to attract customers and keep customers loyal
E.g. chewing gum in a taxi, McDonald’s toys
Revenue
Money that businesses take away after any costs
Profit
The amount of money made when expenses have been subtracted
Inflation
The persistent general tendency for prices in an economy to rise
Customer price index (GPI)
A measure that examines the weighty average of price of a basket of customer goods / services
Globalisation
Increased integration and independence of national economies / world coming together to trade in each other’s markets
Tariffs
A tax paid on a particular class of imports
Quotas
A limit or fixed number or amount of things or people imported into an country
Subsidy
A sum of money granted by the state or a public body to an industry or business to keep the price of the commodity service low
Free trade
Agreement from two or more countries to trade with each other without erecting barries to trade (tariffs or quotas)
Duty
A tax
