Monopolistic Competition (AQA A-Level Economics): Flashcards
📚Flashcards
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10 cards from this deck
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Practise the cards
10 cards from this deck
Market structure with many firms & product differentiation
Market structure with many firms & product differentiation
Monopolistic competition
Making products distinct via branding, design, packaging
Making products distinct via branding, design, packaging
Product differentiation
Profit maximisation condition in all market structures
Profit maximisation condition in all market structures
Profit level in monopolistic competition long run
Profit level in monopolistic competition long run
Normal profit only
Gap between actual output & productively efficient output
Gap between actual output & productively efficient output
Excess capacity
Inefficiency type when price exceeds marginal cost
Inefficiency type when price exceeds marginal cost
Allocative inefficiency
Inefficiency from producing below minimum ATC
Inefficiency from producing below minimum ATC
Productive inefficiency
Ad type that reduces info asymmetry, promotes competition
Ad type that reduces info asymmetry, promotes competition
Informative advertising
Ad type that reduces price elasticity of demand
Ad type that reduces price elasticity of demand
Persuasive advertising
Competing via service, product features, not price
Competing via service, product features, not price
Non-price competition