Market Structure's
- Created by: rockboy3080
- Created on: 04-05-17 10:12
View mindmap
- Market Structure's
- Monopolies
- A monopoly is a system where a market is dominated by one individual business, introducing barriers to entry preventing new businesses entering the market
- Legally, a monopoly needs 25% control of the market in order to be considered a monopoly
- Monopolies are good for individual businesses because it allows the business to charge a higher price, as nobody else is able to present a cheap substitute
- Oligopolies
- An Oligopolistic market structure is a system in which a few big businesses have control over the entire market, with barriers to entry to prevent others from entering the market
- Branding is the main reason for the creation and retention of support for an oligopolisitc market, as people develop brand loyalty in markets
- The high barriers to entry are great for the businesses as it allows them to get a larger share of profit, whilst having more market share.
- Monopolistic competition
- In this system, many small businesses compete in a largely competitive market. They differentiate their products to sell them
- As such, it often means that the barriers to entry are low, and the businesses are the price setters
- Perfect Competition
- This system is largely similar to monopolistic competition. Again, there are many small businesses in a large competitive market.
- However, in this market, the businesses are selling homogeneous products, meaning they have to find different ways to sell them. Again barriers to entry are low and businesses are price setters
- Monopolies
- Monopolistic competition
- In this system, many small businesses compete in a largely competitive market. They differentiate their products to sell them
- As such, it often means that the barriers to entry are low, and the businesses are the price setters
Comments
No comments have yet been made