Edexcel Economics 7. Market Structures

Description

Term

The loss of resale value such as due to depreciation on a firms assets when leaving the market

A market without barriers to entry or exit regardless of the market concentration

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

Where firms have the power to influence consumer decisions such as through advertising

That the disadvantages of which are that it is not efficient, spends a lot on advertising, may have too much product differentiation, and limits economies of scale

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

That some prime of examples of which are; advertising, asset write-offs, lost consumer good-will, redundancy payments, &c.

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

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

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

Description

Term

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

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

That for which to succeed, it is necessary that most firms in an industry are members, there are barriers to entry, and firms' costs and products are similar

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

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

That which under perfect competition in the short-run is where price equals minimum average variable cost

A highly concentrated market with barriers to entry and exit and with few sellers, in which each firm much take account of the behaviour and likely behaviour of rival firms

The number of firms that are are usually used for measuring the n-firm concentration ratio

The slope of a demand/average revenue curve under a monopoly

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