A Level Economics. Different Market Structures

2. a restriction that prevents a firm leaving a market
6. a firm will stop production when price falls below average variable cost
7. a market structure with few firms and high barriers to entry
8. when firms use methods other than price to attract customers from rival producers
9. where firs deliberately lower prices and abandon a policy of profit maximasation to stop new firms entering a market
11. where there is just one seller in the market
14. restrictions that prevent new firms entering an industry
17. a market where entry is free and exit is costless
18. any market structure except for perfect competition
19. where prices are unchanged despite a change in costs
20. the extent to which barriers to entry into a market are free and exit from the market is costless
21. a situation in a market whereby a particular firm has the power to change prices, the result of which is that competitors follow this lead
22. an anti-competitive action by producers
23. where the firm's costs are above those experienced in a more competitive market

1. where with failing long-run average costs, it makes sense to have only one firm providing the good or service
3. a traditional model of a firm's behaviour in oligopoly
4. when barriers to entry into an industry are removed
5. a market structure where there are many firms, differentiated products and few barriers to entry
10. where a firm sells its goods below average variable cost to force competitors out of the market
12. the way in which a market is organised in terms of certain characteristics which can be used to explain the behaviour of firms in a market
13. a formal agreement between firms to limit competition by limiting output or fixing prices
15. an ideal market structure that has many buyers and sellers, identical products, no barriers to entry; sometimes referred to as total competition
16. where firms compete on price to attract customers