Market Structures (Revision Quizlet Activity)

Here are twenty key terms relating to market structures. We have produced a key term glossary and some quizlet revision activities to go with them.

Key terms to revise

Barriers to Exit: Costs associated with a decision to leave a market / industry, for example, lost goodwill with customers

Bi-lateral monopoly: Situation where there is a single (or few) buyer(s) and seller(s) of a given product

Cartel: Formal agreement among firms. members may agree to fix prices, share total industry output and so on

Collusion: When rival companies cooperate for their mutual benefit, common in an oligopoly

Concentration ratio: Measures the proportion of an industry's output accounted for by the largest firms.

Contestable market: An industry with no entry barriers where the threat of competition impacts on the behaviour of existing firms

De-regulation: Opening up of markets to competition by reducing one or more barriers to entry

Duopoly: Any market that is dominated by two suppliers

Duopsony: Two major buyers in a market each of whom has significant buying power with suppliers

Entry barriers: Ways to prevent the profitable entry of new suppliers in the long run

Franchise monopoly: When the government grants a business the sole right to sell or manufacture a product or service in a particular area

Legal Entry Barriers: Barriers including patent protection, legal franchises, trademarks and copyright

Local monopoly: A monopoly limited to a specific geographical area

Market Power: Selling power arising from a firm having a large enough share of the industry to be able to set prices

Market structure: Described the number of firms, the nature of costs, the extent of barriers to entry and the bargaining power of consumers on the demand-side of a market

Monopolistic competition: Market structure with many buyers and sellers of slightly different products and easy entry to, and exit from, the industry

Monopsony: When a single buyer controls the market for a particular good or service

Nationalisation: The transfer of ownership of a firm from the private to public sector.

Oligopoly: A market dominated by a few producers, each of which has control over the market

Privatisation: Sale of state-owned companies to the private sector, normally through a stock market listing.