Market

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  • Created by: Manda1000
  • Created on: 06-01-17 09:57
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  • Market
    • Perfect Competition
      • Large number of producers
      • Identicle/ homogeneous  products
      • Freedom of entry and exit
      • Readily avalable information
      • Each firm is relativly small
      • Sell to large number of small buyers
      • Producers are PRICE TAKERS
      • brand and brand loyalty does not exist
    • Imperfect competition
      • Less firms in market
      • some form of product differentiation
      • At least some barriers to entry and exit
      • demand curve is downward sloping
      • Suppliers can influence prices
    • Monopoly
      • One firm dominates the mark
      • Price leaders they can charge prices
      • Will use promotion to inform and persuade customers
      • can exploit customers by charging high prices
      • Barriers to entry
        • High cost to entre market especially capital costs
        • Economies of scale experienced by large firms e.g. bulk buying
        • Legal barriers e.g. pharmacies selling prescription drugs
    • Oligopoly
      • A few firms dominate the market
      • Can exploit customers by charging high prices
      • Compet in non priced competition
      • Branding is cruical
    • Monopolistic Competiton
      • Where many firms are in the market but the is product differentiation
    • Duopoly
      • Only 2 firms dominate the market
      • same barriesrs as a Monopoly
      • compete on non- priced competition such as promotion

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