Definitions Concentration ratio measure the proportion of the total market share controlled by a given number of firms. Oligopoly is a market structure where there are a few large firms that dominate the market. A key feature is that of interdependence between...
Definitions Price discrimination occurs when a producer charges a different price to different customers for an identical good or service, according the willingness/ability of different customers to pay for it. Conditions for price discrimination...
Definitions Monopolistic competition is a market structure where there are many sellers producing differentiated products, with no barriers to entry or exit. Product differentiation is a form of non-price competition where suppliers attempt to make their...
Definitions Monopoly is a market form where there is only one firm supplying the market, so the firm is the industry. Monopolies have high barriers to entry, enabling them to make abnormal profits in the long run. Barriers to entry are obstacles in the way of...
Definitions Productive efficiency exists when goods are produced at the lowest possible cost per unit of output. This is achieved at the point where average total cost is at its lowest value, this is where MC = AC. Allocative efficiency occurs where suppliers...