Economics
- Created by: Tom
- Created on: 07-01-14 17:40
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- Market Structures
- Oligopolistics
- characteristics
- Industry supply must be dominated by a few large firms
- Firms must be interdependent
- Barriers to entry
- Price Ridity
- TYPES?
- Collusive
- Firms do not compete on price and focus on non price factors
- Competitive
- Firms compete on price
- Collusive
- characteristics
- Monopoly
- Natural Monoply
- HIGH !! economies of scale mean that other firm cannot compete
- Pure Monoply
- Single firm in the market contains 100% market share
- Characteristics
- There is only one firm in the industry
- High Barriers to entry
- Able to price discriminate
- Creates Abnormal Profit
- Natural Monoply
- Monopolistic
- Characteristics
- Many firm competing on a narrow range of goods ( ,non-homogenous)
- no barriers to entry and exit
- firms are short run profit maximisers
- Assumption that there is perfect knowledge
- Characteristics
- Oligopolistics
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