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23 Market Structure - Coggle Diagram

- - - - prevent waste of capital
      - enable R&D
      - large scale, low unit costs
      - receive all profits
    - - restrict supply (poor quality high prices)
      - fail to respond to changes
      - inefficiency
  - - - scale of production
      - brand loyalty
      - legal barrier (patent/ govern)
    - - long-term contract
      - sunk costs
  - - - granted monopolistic power by govern
      - patent
      - own all gold mines
- - - - respond quicker
      - if firm is not efficient, it will be driven out the market
      - provide incentive+threat
    - - high level of competition, drives profit down to normal profit
      - small scale of production, increase unit costs