Market Structures Flashcards
(8 cards)
1
Q
What’s does halfppp stand for and what market structure is it under?
A
Perfect competition Homogeneous goods All firms have access to production Lots of buyers and sellers Free barriers to entry/exit Perfectly elastic demand curve Perfect knowledge Profit maximisers
2
Q
Examples of oligopoly’s
A
Airbus & Boeing 50/50
Android and IOS -13.7%
Petrol 83%
3
Q
What does BOILS stand for?
A
Barriers to entry/exit One firm Imperfect knowledge Leaders (price makers) Short run profit maximisers
4
Q
Benefits of a monopoly
A
Economies of scale- lower costs
Research and development
Most efficient
Global competition
5
Q
Problems with monopolies
A
Poorer quality Lack of innovation High prices Loss of efficiency Environmental problems Regulation Diseconomies of scale Lack of choice
6
Q
Characteristic of oligopolies
A
Supply is concentrated by a few firms Firms are interdependent High barriers to entry/exit Product differentiation Non-price competition
7
Q
Examples of non price competition
A
Advertisement
Personal selling
Reviews
8
Q
What does clouds mean?
A
Where forms make agreements so they can charge higher prices, lower output and maximise profits
