Business

Monopoly

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Monopoly A monopoly exists when a firm dominates a market. A monopoly is defined as a firm with 25% or more market share in a particular industry. Characteristics of a Monopoly: One firm dominates the market. High barriers to entry and exit. Price makers (Downward sloping demand curve). Firms are profit maximisers (MC = MR). […]
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Monopoly
Monopolistic Competition

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Monopolistic Competition Monopolistic competition is similar to perfect competition. However all the products they sell are slightly differentitated. Due to this firms in monopolistic competition have a downward sloping demand curve and are able to set price. Example Hairdressers – All hairdressers differentiate themselves through the price, quality and experience they provide to customers. Restaurants […]
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Monopolistic Competition
Oligopoly

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Oligopoly Oligopoly market structure exists where there are a small number of large firms dominating the market. Examples: Supermarkets Retail banks Mobile phone networks  Characteristics of Oligopoly market structure High concentration ratio High barriers to entry Firms are interdependent (They make price and output decisions based on each others) Firms compete through non – price […]
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Oligopoly

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