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8 Cards in this Set
- Front
- Back
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5 Characteristics of Competitive Markets |
Large Number of Sellers and Buyers Close Substitutes Low Barriers to Entry No firm has control of price change Free flow of information |
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Competition and Firms |
Firms do not want competition as they want to dominate |
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If there is no competition between firms what happens? (3 Things) |
Less pressure to be innovative and efficient Charge higher prices Reduces effort to survive + be successful |
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Competition between firms (4 things) |
- Have to offer products with value for money (good quality) - Operate efficiently - Acceptable price - Innovation |
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Advantages of competition for consumers (3 things) |
Lower price More choice Better quality |
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Disadvantages of competition with consumers (2 things) |
Market uncertainty Lack of Innovation |
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Advantages of competition for the economy (2) |
Resources allocated more efficiently More innovative (better standards of living) |
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Disadvantages of competition for the economy (2) |
Resources may be wasted People are made redundant |
