3.4- Pricing Strategies and Contestable Markets 0.0 / 5 ? EconomicsMicroeconomics- Theme 3 DefinitionsA2/A-levelEdexcel Created by: 13clarkenCreated on: 11-01-20 18:53 24531 Across 1. A ... is a market in which the existing firm makes only normal profit, as it cannot set a higher price without attracting entry, owing to the absence of barriers to entry and sunk costs (11, 6) 4. ... is a pricing policy whereby firms set their price by adding a mark- up to average cost (4, 4, 7) Down 2. ... is the highest price that an existing firm can set without enabling new firms to enter the market and make a profit (5, 5) 3. ... to ... is a characteristic of a market that prevents new firms from readily joining the market (7, 5) 5. ... is an anti-competitive strategy in which a firms sets price below average variable cost in an attempt to force a rival or rivals out of the market and achieve market dominance (9, 7)
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