Market Structures (Grade 11 NSC Matric Economics): Flashcards
📚Flashcards
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Practise the cards
10 cards from this deck
Price takers
Price takers
Businesses that accept market price set by supply and demand
Price makers
Price makers
Businesses that can influence prices in imperfect markets
Perfect competition
Perfect competition
Ideal market with many firms, identical products, price takers
Monopoly
Monopoly
Single producer with complete control over price and quantity
Oligopoly
Oligopoly
Few large firms dominate market and influence price
Monopolistic competition
Monopolistic competition
Many sellers with similar but differentiated products
Equilibrium point
Equilibrium point
Where supply and demand meet with no shortages or surpluses
Perfect competition in reality
Perfect competition in reality
Purely theoretical, doesn't exist in real world
Key feature of imperfect markets
Key feature of imperfect markets
Products are differentiated, not identical
Monopoly's market power
Monopoly's market power
Complete control, no competition, no substitutes available