Abnormal profit: Any level of profit over and above normal profits.
Allocative efficiency: Is achieved when resources are used to yield the maxiumn benefit to everyone. Goods/services produced will be the ones mostly closely suited to consumers' needs and preferences.
Barrier to entry: Are factoes that make it difficult for a firm to enter a market. There will be less competition, high start up cost that requires a lot of investments, strong brand loyalty.
Brand proliferation: Occurs when one producer sells multiple brands, to reach different market segments or as a competitive stratgey.
Collusion: Occurs when business agrees with one another in order to advoid having to compete.
Concentration ratio: Measures the extent to which a market/indeustry is dominated by a few leading firms
Duopoly: Occurs when 2 large firm dominate the market (i.e. Visa and Mastercard)
Game theory: Studies the behavious of players which are intredependent; the actions of one will have impact on others.
Homogenous product: Are identical to one another.
Imperfect competition: Covers any market situations between the extrmrs of perfect competition and monoply.
Legal monopoly: Within the UK legal systems 25% or more of the market is seen as monopoly power of a firm.
Limit pricing: Setting prices below a profit maximising level in order not to attract competitors to enter a contestable market.
Long tail: The idea…