The Dynamics of Imperfect Markets (Grade 12 NSC Matric Economics): Flashcards
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10 cards from this deck
Monopoly market structure
Monopoly market structure
Single firm controls entire market, high entry barriers
Oligopoly market structure
Oligopoly market structure
Small number of firms dominate, significant entry barriers
Monopolistic competition
Monopolistic competition
Many sellers, differentiated products, some market power
Artificial monopoly
Artificial monopoly
Barriers from non-economic factors like patents
Legal monopoly
Legal monopoly
Laws prevent competition for public interest reasons
Natural monopoly
Natural monopoly
Economics favour single firm (high infrastructure costs)
Cartel
Cartel
Agreement among firms to fix prices or limit production
Collusion
Collusion
Arrangements between firms to limit competition
Price leadership
Price leadership
Dominant firm sets prices that others follow
Imperfect market
Imperfect market
Prices fail to reflect product scarcity or true conditions