Business economics

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Perfect Competition
an industry with homogeneous goods, perfect knowledge, many small buyers and sellers and low barriers to entry. The firms are price takers, and there is one market price
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Monopoly
is a single supplier. A legal monopoly is a firm with more than 25% market share. The firm has the ability to set price.
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Natural monopoly
is an industry with constantly falling LRAC. There is only one firm in the industry because it would not be economically efficient to introduce competition.
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Price Discrimination
where a firm charges a different price for the same product in different markets.
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Monopsony
is a single buyer. The firm has the ability to set the price which it pays for the product.
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Oligopoly
where the industry is dominated by a few, large firms. There is a high concentration ratio.
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Interdependence
where one firm’s decisions will have an impact on the others in the industry
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Tacit or Implicit Collusion
An unspoken and unwritten agreement between two firms to avoid competition. Firms monitor each other’s behaviour and follow price and output decisions.
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Card 2

Front

Monopoly

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is a single supplier. A legal monopoly is a firm with more than 25% market share. The firm has the ability to set price.

Card 3

Front

Natural monopoly

Back

Preview of the front of card 3

Card 4

Front

Price Discrimination

Back

Preview of the front of card 4

Card 5

Front

Monopsony

Back

Preview of the front of card 5
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