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James




MARKET STRUCTURE
MONOPOLY AND PERFECT COMPETITION
THE MARKET STRUCTURE SPECTRUM




PERFECT COMPETITION
An increase in the supply by ONE firm would result in a small
rightward movement along the demand curve, and
therefore demand will not change.

If output was doubled, the price would fall. If one perfectly
competitive…

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James




MERGER TAKEOVER

H When two companies competing in the When a firm takes over another firm in the
O same market join together. same industry.
RI
Z
E.g. Ford and Volvo. E.g. Fullers takeover Gales.
O
NT
AL

VE When two firms, each working at When one firm takeover…

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James




Natural Monopoly: When extensive economies of scale already exist. E.g. SWT ­ Rail
network already exists.




Page 3

Comments

davidsalter

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This is a well presented 2 page summary about the characteristics of perfect competition and monopoly and how firms grow. Lots of bullet points and boxes so easy to read.

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