Market Structure Flashcards
(9 cards)
1
Q
Market structure
A
Key characteristics of a particular market
2
Q
Barriers to entry
A
Obstacles preventing firms from entering market
3
Q
Competitive markets characteristics
A
Aim to produce differentiated products
4
Q
Price taker
A
Set price according to market price
5
Q
Monopoly
A
Sole supplier of good or service, has power to affect market supply and prices
6
Q
Price maker
A
Set own price with market power to do so
7
Q
Characteristics of monopoly
A
- sole supplier
- have high barriers to entry
- imperfect knowledge of consumers and rivals
8
Q
Adv of monopoly
A
- operate on large scale, have economies of scale
- have financial resources for innovation
- can eliminate wasteful comp.
9
Q
Disadv of monopoly
A
- demand price inelastic, can charge high prices
- less incentive to innovate
