Summary

Monopolies operate where there is one firm in the market, they are able to set prices and have high barriers to entry

Oligopolies have a few firms in the market, high brand recognition and heavy competition on non price factors

Price makers are able to set the price for the market whereas price takers have to accept the market price

Growth of firms – firms grow internally and externally through organic growth or mergers, takeovers, joint ventures and management buyouts

Outsourcing is increasingly being used by firms to grow their operations

Monopolies have power as they are able to influence the price for the whole market

The model of the monopoly shows how the monopolist takes the industry demand curve as their own

Collusive and non collusive oligopoly – collusive oligopolies work together to set prices, non collusive oligopolies do not

Interdependence in oligopolistic markets – companies take decisions based on the expected decisions of others, all decisions are influenced by those of others and influence them

Price discrimination is where you charge a different price for the same product to different consumers

Consumer and producer surplus show the extra benefits to producers and consumers of a certain price

Contestability looks at the threat of entry of new firms to the market

Market Structure influences the allocation of resources within an economy