Unit 3

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Across
  1. 6. Regulators may set this to industries to limit each year’s price increase to only RPI-x
  2. 9. is the only buyer in a market
  3. 11. is the removal of government controls (red tape, laws and regulations) over markets
  4. 12. A firm experiences this when long-run average costs fall as output rises
  5. 13. is the act of satisfying or sufficing different stakeholders
  6. 16. occurs at AR=AC, the firm breaks even and generates normal profits
  7. 18. models interdependent firms in a duopoly with a pay-off matrix to recognize rival behaviour, strategies and a best solution
  8. 19. are costs that cannot be recovered upon exiting a market
  9. 22. is where a doubling of inputs leads to a doubling of output
  10. 24. occurs when two or more firms join together under common ownership
  11. 26. occurs when there are a few large dominant firms, large firms are interdependent and there are significant entry/exit barriers
Down
  1. 1. is money earned by a firm for selling its output
  2. 2. are costs that vary directly with output
  3. 3. a type of integration that occurs when a buyer buys a supplier and becomes closer to the raw materials in the supply chain
  4. 4. are perfect substitutes
  5. 5. occurs when an incumbent firm sets a price so low that they earn normal profit (or low super-normal profit) to make rivals make a loss (because they are not as efficient)
  6. 7. a type of merger that occurs when two firms who have no common production interests merge
  7. 8. occurs when a firm charges different consumers different prices for identical goods
  8. 10. A firm is this when lack of competition leads to costs higher than they would be with competition
  9. 14. is the sale of state-owned assets/enterprises/industries to the private sector
  10. 15. is the separation of a firm into two or more independent businesses
  11. 17. is the minimum scale to fully benefit from economies of scale
  12. 20. occurs when large firms in an oligopoly form a cartel to act as a monopoly to restrict output and raise prices
  13. 21. A firm is this if it has the power to set its price
  14. 23. is the difference between revenue and costs
  15. 25. a type of strategy which uses methods such as advertising, marketing, branding and differentiation to increase competitive advantage