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Description
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Term
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That market structure, an advantage of which over perfect competition is that it has the potential to earn supernormal profits, allowing for investment in research and development and a potential increase in productive efficiency
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Monopoly
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Where a regulator sets targets to meet, such as average train delay times which may incur fines if not met or rewards if achieved
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Performance Targets
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Where demand for labour and the supply of labour are equal
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Labour Market Equilibrium
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That which would decrease with a fall in the equilibrium price for the product it produces ceteris paribus
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Demand for Labour
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That industry in which historic deregulation has been heavily criticised for resulting in no action being taken to restrain banks in the lead up to the Great Recession
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Financial Services
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A restrictive practice where a vertically integrated firm that controls the supply of a product charges competitors a high price so that they cannot compete on equal terms in selling the product
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Vertical Price Squeezing
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Those organisations, the bargaining power of which can be increased by low unemployment, whether its members provide a key service, public support (such as for nurses), and a high proportion of workers in an industry being members
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Trade Unions
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That which investigates a merger if the firms involved have a combined market share in the UK of over 25% and worldwide assets of over £70 million
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Competition and Markets Authority (CMA)
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A theory that the demand for labour depends upon balancing the marginal revenue product of labour against the marginal cost of labour
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Marginal Productivity Theory
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That which needs to be balanced as if it is set too high it may discourage participation in the labour market, while if they are too low it may not adequately protect vulnerable people, while also discouraging people from leaving their job to search for a better one, reducing labour market flexibility
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Unemployment Benefits
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Those bodies, the four principal methods of which for controlling firms' policies are; price regulation, profit regulation, quality standards, and performance targets
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Regulators
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A set of measures designed to promote competition in markets and protect consumers in order to enhance the efficiency of markets
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Competition Policy
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The pricing system used of Ofwat where price is set at the change in the Retail Price Index plus Ofwat's estimate of the amount needed for capital investment
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RPI + k
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That which if increased, may cause a substitution effect against labour as the opportunity cost of leisure would increase, encouraging people to work more hours ceteris paribus
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Wage Rate
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Where a practice or event results in a significant decrease in competition
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Substantial Lessening of Competition (SLC)
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A restrictive practice whereby firms supply products subject to the condition that they are sold at recommended prices
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Resale Price Maintenance
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That type of wage which does not increase or cause unemployment if it is set below equilibrium, ceteris paribus
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Minimum Wage
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The additional output produced by a firm increasing its labour input by one unit (such as one more person-hour) holding capital constant, and subject to the law of diminishing returns
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Marginal Physical Product of Labour (MPPL)
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Demand for a good or service not for its own sake, but for what it produces, e.g. labour is demanded for the output that it produces
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Derived Demand
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That aspect of labour which is most affected by time (such as that taken to retrain, or in notice required to be given by an employment contract), and the ease with which the workforce can expand or contract such as due to unemployment, skills shortages, etc.
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Wage Elasticity of Supply for Labour
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