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12 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Competition |
Where different firms are trying to sell a similar product |
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What happens if there is an increase in competition? |
Supply increases Quantity rises Decrease in price |
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Monoply |
Sole producer or seller of that good or service |
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Oligopoly |
Small number of firms control a large part of the market share E. G Asda |
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Why do producers compete? |
To enter a market To survive a market To make profit |
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Barriers to entry examples |
Legal barriers Greater efficiency Location |
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Impact on consumers |
Lower prices - reducing costs Improved quality and range of goods and services Rise in standard of living |
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Price competition |
Lower prices attracts more consumers and increases market share |
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Impact on competition on producers |
Improved efficiency which leads to reduced costs Innovation for example computers can lead to higher productivity which can cause higher economic growth Increase in demand |
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Competitive market |
Small Many Price is lower quantity is greater Lead to economic efficiency |
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Legal barriers |
Laws prevent certain firms from operating e.g Royal Mail is the only firm allowed to handle letters |
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Copy right |
Copy right claims prevent firms from duplicating that specific production so competition isn’t a problem. Only that firm can provide that design |
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