Market Structures Flashcards
1
Q
What is an industry?
A
An industry consists of all firms making similar or identical products
2
Q
What is market structure?
A
Market structure is a term which explains how an industry is organised and what characteristics it has
3
Q
What are the four market structures?
A
-Perfect Competition
-Monopoly
-Oligopoly
-Monopolistic
4
Q
What is “perfect competion”?
A
When numerous small firms compete against each other and supply the same product at the same price
5
Q
What is a “monopoly”?
A
One firm that has no real competitors in its industry. There will normally be one business in this market
6
Q
What is an “oligopoly”?
A
An oligopoly is an industry with only a few firms
7
Q
What is “monopolistic”?
A
