Edexcel Economics 7. Market Structures

Description

Term

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

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

The fundamental feature of monopolistic competition

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

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

That profit made in the long-run under perfect competition

Where a firm sets price below average variable cost in an attempt to force rivals out of the market

Where the firms in a market cannot control prices, with freedom of entry and exit

A model of oligopoly that a firm may face two different demand curves depending on how rivals respond to a change in price

That which is legal only where it improves production, distribution, and/or technical progress in goods and the market such as setting joint industry standards

Description

Term

That which barriers to entry and exit can encourage by promoting research and development in firms wishing to enter a market and those incumbent firms looking to maintain supernormal profits

A situation of productive and allocative efficiency where it is not possible to make someone better-off without making another worse-off (depending on the value society places on the goods and services concerned)

Those type of costs that can be a barrier to entry, examples of which are; advertising expenditure, uniforms, equipment, &c.

That market structure under which long-run equilibrium is reached where average cost equals average revenue, all profits being normal

A situation in which firms refrain from competing on price though without formal agreement or communication

That, the three principal measures of which are; sales/market share, output, and employment

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

That the principal idea behind which is that the behaviour of firms is determined by potential competition as well as actual competition

A market with product differentiation, relatively elastic price, freedom of entry, and low concentration, such as in fast food restaurants

Where a firm ensures that its own brand of a product is unique via special features and design