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Business Angela Emma Rudd BMA

External Influences

Markets and Competition
Introduction to Markets
There are many outside influences which affect businesses, of which the market is
just one.

Size of the Market
The markets in which they trade heavily influence businesses. The size of the market
influences businesses: whether it…

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Business Angela Emma Rudd BMA

There is risk of firms working together in Oligopoly markets ­ this is termed collusion.
Collusion may result in producers agreeing price levels and perhaps output levels. If
they have formal arrangements about prices and market share then they are
operating a cartel. (A cartel…

Page 3

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Business Angela Emma Rudd BMA

A common unfair competition is the creation of cartel. Cartels normally result in
higher prices and less advanced products for consumers as producers share out the
market between themselves. This is more likely to occur in Oligopoly markets as the
smaller number of producers makes…


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