Edexcel Economics 7. Market Structures

Description

Term

That position on the kinked demand curve that a firm would generally set its price as if it were to increase it, rivals would remain at the original price thus outcompeting them, or if it were to decrease its, rivals would follow suit

A market in which there are barriers to entry and exit and only one firm, which can influence price

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 arises where price equals marginal cost

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

A firm that must accept whatever price is set in the market as a whole

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

That curve which is equal to the average revenue curve and demand curve under perfect competition in the short-run

A situation in which firms openly cooperate to agree prices or market share

A barrier to entry in which incumbent firms lower prices so as to be unprofitable to potential competitors

Description

Term

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

A situation in game theory where each player's chosen strategy maximises payoffs given the other player's choice, so that neither has an incentive to alter behaviour

A firm that influence mark price

That for which firms must have power over price, knowledge of demand, and the ability to prevent arbitrage to be able to institute

Where a firm is able to charge different groups of consumers a different price for the same product, such as senior discounts

The price at which a firm would exit the market

Efficiency achieved over time from taking into account the effects of changes in consumer demand on productive and allocative efficiency in the long-run

Where firms focus on competing in a smaller market niche such as plus sized clothing

A situation arising in a market where a monopoly firm is able to charge each consumer a different price

The point at which an individual firm is in equilibrium in both the short-run and long-run under perfect competition