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3.1.3,4 - Coggle Diagram
3.1.3,4
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Competition
Perfect competition- many companies that sell the same product or service and no one has enough market power to be able to set prices on the product or service
Monopoly- A market where there is one dominant producer who controls the supply and trade of said commodity Monopoly power- The ability to set price in a market
Oligopoly- A market where there is a few/ small number of producers who are interdependent on price and supply to the market.
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Allocative efficiency
A property of an efficient market whereby all goods and services are optimally distributed among buyers in an economy. e.g. a baker has iced 10 doughnuts in the morning and there is 10 customers wanting iced doughnuts.