Market structures Flashcards
1
Q
Factors to determine market structure
A
Number of firms, product differentiation, ease of entry/barriers to entry, extent to which knowledge is perfect, influence of individual firms on price
2
Q
Exit barriers (example)
A
Difficult to sell specialist tech
3
Q
Sunk costs
A
Start up costs that can’t be recovered (e.g ads and market researc)
4
Q
Patents
A
A good with protection where only one firm can make it
5
Q
Which body regulates the product market ?
A
Competition and markets authority (CMA)
