Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
|
Def of market structure |
This is a term that explains conditions that exist in a market |
|
|
what’s perfect competition |
this is an imaginary market structure that acts as a benchmark to the real market structure |
|
|
Characteristics of perfect competition |
1) high degree of competition 2) homogeneous products. These are products which are similar or identical to customers 3) no barriers to entry or exit the market 4) perfect knowledge 5)Firms are price takers. This means that goods and services are determined by demand and supply |
|
|
Adv of perfect competition market |
1) consumers sovereignty. As produces produce what is demanded in the market 2) high quality of goods 3) low prices 4) efficiency of resources |
|
|
Disadvantages of perfect competition market |
1) business may not be able to expand and enjoy economies of scale 2) homogeneous products affect consumers choice as they have less variety of goods |
|
|
Def of monopoly |
A market structure with a single supplier of goods and services |
