chpater 6-10 business A2 0.0 / 5 ? Business Studies & Economicschapter 6-10A2/A-levelEdexcel Created by: evierutherford1999Created on: 05-03-18 11:45 what is abnormal profit profit in excess of normal profit - profit that is needed to keep firm in business 1 of 21 what is collusion? collaberating to take a joint action 2 of 21 what are estrictive practices? anti-competitive abuse of market power - atrificial barriers to entry 3 of 21 What is a cartel? a secret agreement betweena number of produces of a good. 4 of 21 What is tacit collusion ? when there is no agreement - firms independantly work. 5 of 21 what is monopsony power? exists where major purchaser has market power over smaller suppliers 6 of 21 what are regulations ? they are legal and other rules that apply to businesses that come from governments 7 of 21 Whata re public goods? they won't be provided by a free market as the benefits are for all. 8 of 21 What are merit goods? under-consumed in a free market as epoeple can't afford them 9 of 21 What are demerit goods? `they are over-consumed by buyers who overestimate their benefits due to info gaps. 10 of 21 What is geographical mobility? ability of workers to move to where jobs are available. 11 of 21 What is occupational mobility? being able to move from one type of work to another. 12 of 21 what is imperfect information buyer or sellers who dont know everything about the transaction. 13 of 21 hat is asymmetric info? occurs if either buyer or sller knows more than the other 14 of 21 What is an information failure? distorts resource allocations. 15 of 21 What are external benefits? benefits affecting anyone other than the buyer or seller 16 of 21 what are external costs? costs that impact on third parties 17 of 21 what are private costs? they are paid by the seller 18 of 21 What are private benefits? the buyers gain from consumption. 19 of 21 what are social costs? the total or private and external costs1 20 of 21 what are social benefits? the total private and external gain 21 of 21
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