Edexcel Economics 7. Market Structures

Description

Term

That which arises where there are substantial fixed costs of production or operation but low marginal costs such as an underground rail network

A market with relatively few firms - perhaps due to moderate economies of scale - that either compete of cooperate

Where a firm enters a market or industry to take advantage of temporary supernormal profits, exiting when the profits have been exhausted

The slope of a demand/average revenue curve under perfect competition

A market structure with many participants that produces allocative and productive efficiency in long-run equilibrium

That the disadvantages of which are that consumers have less choice, while quality and price cannot be improved as small firms cannot finance research and development

A measure of the market share of the largest 'n' firms in an industry

That which assumes firms and consumers have perfect knowledge

That which may promote efficiency as a firm may go out of business if not producing what consumer want at low cost, while a firm may increase profits if it is relatively more efficiency

That which began in March 2020 between OPEC and its ally Russia after the latter refused to reduce its oil production in order to maintain prices during the Coronavirus epidemic

Description

Term

Barriers to entry that arise naturally in an industry such as economies of scale or high start-up costs

Obstacles that make it difficult or impossible for new firms to enter a market

That which allows monopolies and oligopolies to potentially sell at lower prices than under perfect competition

Where prices in two market segments are equalised by participants purchasing and reselling products

That which barriers to entry and exit can encourage where firms do not face much competition and/or likelihood of being driven out of the market

Where an oligopolist firm competes by means of technical innovation, advertising, service provision (opening hours, &c), &c, rather than price

The curve that is equal to a firm's average revenue curve

That which often arises between countries - such as OPEC - as it is near universally illegal for firms

The way in which market share is split between a number of firms

Factors that make it difficult or impossible for incumbent firms to leave a market