Market Structure

• the definition for monopoly markets is...

  when there are single sellers or single producers
• the definition for oligopoly markets is...

  when a small number of firms control the market
• the definition for monopolistic competition markets is...


  when many companies produce similiar but differentiated products and /or services]
• the definition for perfect competition market is...

  when all companies sell identical products
• describe 3 characteristics of a monopoly market

  • there are barriers to entry
  • unique products
  • price descrimination
• describe 5 characteristics of an oligopoly market

  • high barriers to entry
  • uncertainty
  • price setters
  • interdependence
  • product differentiation
• describe 2 characteristics of a monopolistic competition market

  • offer competing products that are similiar
  • low barriers to entry
• describe 3 characteristics of a perfect competition market

  • doesn't happen
  • substantial market share
  • freedom of entry and exit
• The Sale and Supply of Goods Act 1994 states that...

  • goods must be fit for purchase
  • goods must be capable of doing what they're designed for or what purchaser would reasonably expect the product/s
• The Consumer Credit Act 1974 states that...

  • goods are controlled through the way that they're bought and sold on credit
  • APR established allowed users to compare competitive interest rates and judge the true cost of borrowing
• The Trade Descriptions Act 1972 states that...

  • they are to prevent and make it a criminal offence to give untrue or misleading descriptions of goods with regard to their content
• Distance Selling Regulations (helping protect customers who buy online or over the phone) states that...

  • consumers must have a cancellation period of 14 days as a minimum
• recall 3 roles of the CMA (Competition and Markets Authority)

  • investigates mergers with the potential to lead to a substancial lessening of competition so if a merger us able to reduce competition this way, CMA are able to block it or impose remedies to address concerns
  • takes action against businesses and individuals including cases where unfair treatment suggests there may be a systematic market problem
  • protects individuals from unfair trading practices