perfect, monopolistic,oligopoly, monoply competition

Question 1

anti competitive behaviour

Answer 1

business strategies employed to deliberately limit contesabillity within markets

Question 2

cartel

Answer 2

formed by a group of producers when they illegally decide to collude and not compete

A collusive agreement around. Group of oligopoly firms to fix prices and or output between them selves

Question 3

collision

Answer 3

illegal cooperation between multiple firms forming a cartel

Question 4

concentrated market

Answer 4

a market with very few firms

Question 5

concentration ratio

Answer 5

the total market share of leading firms in an industry, these firms output as a percentage of total output

Question 6

contestability

Answer 6

ease in which consumers can enter a market

Question 7

consumer surplus

Answer 7

difference between price consumers are willing to pay and the price they actually pay

Question 8

deadweight loss

Answer 8

loss of social welfare derived from economic activity

Question 9

de merger

Answer 9

when a firm sells parts of its business to create separate smaller firms

Question 10

duopoly

Answer 10

any market that is dominated by 2 organisations

Question 11

Dynamic efficiency

Answer 11

Improvements to efficiency in the long run, bought about by investment in to R and D

Question 12

Entry/ exit barrier

Answer 12

Making it difficult for firms to enter/ leave the market

Question 13

Game theory

Answer 13

Where there are two or more interacting decision markers and different decisions lead to differing outcomes

Question 14

Imperfect competition

Answer 14

Any market structure between external,eyes of perfect competition and a pure monopoly

Question 15

Innovation

Answer 15

Improving up on an existing product/ process

Question 16

Interdependence

Answer 16

When the actions of one firms influence the actions of other firms in the market

How firms in competitive oligopoly are affected by rival firms pricing and output decisions

Question 17

Invention

Answer 17

Creation of a new product/ process

Question 18

Kinked demand curve

Answer 18

Assume a a business may face a dual demand curve for its profit based on the oligopoly market structure

Question 19

Limit pricing

Answer 19

Lowering the price of a good or service a round AC creating an artificial barrier to entry

Question 20

Monopoly

Answer 20

Market with only one supplier / dominant firm

Question 21

Monopoly power

Answer 21

The ability of a firms to by a price marker rather that a price taker, ability to set prices

Question 22

Oligopoly

Answer 22

Market dominated by few firms

Question 23

Patent

Answer 23

Government legislation protecting a firms right to be the some producer of a good

Question 24

Price leadership

Answer 24

The dominant firm in the market sets the price and less dominant firm a alter their price accordingly

Question 25

Price war

Answer 25

Where multiple firms current price a each firm trying to under it its competitors and gain market demand

Question 26

Price taker

Answer 26

A firm that passively accepts the market price set by forces beyond the firms control

Question 27

Principle a gent problem

Answer 27

Those in control of a firm (agents) act in their own best interest rather than of the owners ( principals)

Question 28

Producer surplus

Answer 28

Difference between the provides producers are willing to accept and the prices t they actually accept

Question 29

Product differentiation

Answer 29

Difference a between multiple similar goods and services

Question 30

Profit maximisation

Answer 30

When a firm seeks to make the largest positive difference between total revenue and total costs

Question 31

Pure monopoly

Answer 31

Only one firm dominates the market

Question 32

Static efficiency

Answer 32

Efficiency in the short run, snapshot of efficiency at. Particular time

Question 33

Perfect competition

Answer 33

Marketing structure that has a large number of buyers and sellers in hi have perfect in formation about the market, identical products and few if any barriers to entry

Question 34

Market structure

Answer 34

The number and size if firms within. Market did a particular good or service

Question 35

Pure monopoly

Answer 35

When only one firm supplies to the market

Question 36

Divorce of ownership from control

Answer 36

Separation that exists between owners of the from and directives in large public limited companies

Question 37

Satisficing

Answer 37

Making do with a satisfactory subnormal level of profit

Question 38

Static efficiency

Answer 38

Efficiency measured at a point in time compromising productive efficiency and allocative effiencency

Question 39

Monopolistic competition

Answer 39

A firm of I’m perfect competition with a large number of firms producing slightly differeiated products

Question 40

Oligopoly

Answer 40

A market a structure dominated by a small number of powerful firms

Question 41

Tacit collusion

Answer 41

A collusive relationship between from a without a t formal agreement having being made

Question 42

Overt collusion

Answer 42

A collusive relationship between firms involving an open agreement

Question 43

Prices maker

Answer 43

A firm with the power to set the rulling market price

Question 44

Barriers to entry

Answer 44

Any feature of a a market that makes it difficult or impossible for more firms to enter

Question 45

Products differentiation

Answer 45

Using advertising or products design to make a products seem different from those of competitors

Question 46

Sunk costs

Answer 46

Costs that can not easily be recovered if a firm is unsuccessful in a market and has to exit

Question 47

X efficiency

Answer 47

The lack of willingness if firm a with monopoly power to control their costs of production

Question 48

Innovation

Answer 48

New product and production processes that ire developed into marketable services goods /

Question 49

Natural monopoly

Answer 49

A marker where a single firm can benefit from continuous economies of scale

Question 50

Price discrimination

Answer 50

Where firms with monopoly power charge different group of consumers different prices for the same product

Question 51

Price competition

Answer 51

Reducing the price of a good or service to make it more attractive than those of competitors

Question 52

Non-price competition

Answer 52

Competition on the basis uk product features other than price: quality, advertising after sales service

Question 53

Contestable market

Answer 53

Market with freedom or-entry exit

Question 54

Hit and run competition

Answer 54

In contestable markets where new entrants take a share of the SNP and they exit the industry

Question 55

Hit and run competition

Answer 55

In contestable markets where new entrants take a share of the SNP and they exit the industry