Key terms: Market Structure and Competition

Key terms: 

Market Structure: the organisational and other characteristics of a market

Entry Barriers: obstacles that make it difficult for a new firm to enter a market e.g. the cost of entering the market 

Exit Barriers: obstancles that make it difficult for an established firm to leave a market

Monopoly: one firm dominates the market, also considered to hold more than 25% of the market share e.g. Google, Netflix, Underground.

- Monopolies are price leaders and are in imperfect competition with imperfect informtion on the market price. These markets can manipulate the market prices and exploit consumers, but are regulated by governements to prevent this. 

Pure Monopoly: A single firm opperates within the market, holding 100% of the market share. 

Duology: where two firms dominate the market, competing through non- price competition such as promotion and branidng. There are high barriers to entry. Examples: Coca-Cola and Pepsi

Oligology: where 3 or more firms dominate the market, competing through product variation and promotion (non- price competition). There can sometimes be elements of collusion. Examples can include broad band services and supermarkets:Tesco, Sainsbury's, Aldi, Asda.

Collusion; Where firms can join together to manipulate the market. They may agree to rise the prices together, which put consumers at risk. This is illegal, and governements regulate this. 

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