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Edexcel Economics 7. Market Structures

In this quiz the answers change every time you play! Guess the terms that fit these definitions
Answer must correspond to highlighted box!
Quiz by robalot39
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Last updated: March 9, 2020
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First submittedOctober 27, 2019
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Average score25.0%
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Description
Term
A situation in game theory where each player's chosen strategy maximises payoffs given the other player's choice, so that neither has an incentive to alter behaviour
Nash equilibrium
Factors that make it difficult or impossible for incumbent firms to leave a market
Barriers to exit
When an economy is producing a balance of goods and services that matches consumer preferences
Allocative efficiency
That the benefits of which are that it can; allow some consumers to buy an otherwise unafforable product, present opportunities of economies of scale, and secure supply due to higher profits
Price discrimination
A firm that influence mark price
Price Maker
That which long-term contracts can be, as a firm could be sued for seeking to exit the market during the contract, assuming it hasn't become bankrupt
Barrier to exit
Those which are larger where there is less competition and/or more product differentiation
Mark-ups
Barriers to entry that arise naturally in an industry such as economies of scale or high start-up costs
Structural barriers
That which can be a barrier to entry as a firm may need to have access to large amounts of capital such as in the aerospace industry
High start-up costs
That which it is assumed a product has no actual or potential examples of under a monopoly
Substitutes
Description
Term
That for which firms must have power over price, knowledge of demand, and the ability to prevent arbitrage to be able to institute
Price discrimination
That the disadvantages of which are that there is potentially more regulation and a threat that rival firms may enter the industry
Monopoly
A highly concentrated market with barriers to entry and exit and with few sellers, in which each firm much take account of the behaviour and likely behaviour of rival firms
Oligopoly
The which assumes a market has no externalities
Perfect Competition
Where firms have the power to influence consumer decisions such as through advertising
Producer sovereignty
That which firms can erect through legal devices such as patents, copyright, and operating licences
Barriers to entry
That the disadvantages of which are that it is not efficient, spends a lot on advertising, may have too much product differentiation, and limits economies of scale
Monopolistic competition
A market structure with many participants that produces allocative and productive efficiency in long-run equilibrium
Perfect Competition
The slope of a demand/average revenue curve under perfect competition
Horizontal
That which arises where actual average cost exceeds average cost at maximum efficiency
X-inefficiency
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