Perfect competition, imperfectly competitive markets and monopoly

1. costs that have already been incurred and cannot be recovered (4, 5)
2. one firm only in a market (8)
5. a collusive agreement by firms, usually to fix prices or restrict ouput (6)
6. occurs when rival firms continuously lower prices to undercut each other (5, 3)
10. efficiency at a particular point in time (6, 10)

2. the organisational and other characteristics of a market (6, 9)
3. achieving a satisfactory outcome rather than the best possible outcome (11)
4. a measure of the economic welfare enjoyed by firms or producers, the difference between the price a firm succeeds in charging and the minimum price it would be prepared to accept (8, 7)
8. obstacles that make it difficult for a new firm to enter a market (5, 8)
9. barriers erected by the firms themselves such as high levels of advertising expenditure or predatory pricing (10, 8)

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