Market structures
What Market structures means in Economics A-Level, as defined for AQA.
Definitions of Market structures
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Reference: AQA
Distinguished by whether the firm is a price-taker, whose average and marginal revenue curves are identical and horizontal, or a price-maker, whose average revenue curve slopes downwards.
A framework for classifying markets along a spectrum of competition, based on characteristics like the number of firms, barriers to entry, and product differentiation.
Different market arrangements compared by their long-run equilibrium positions against the price equals marginal cost and minimum average total cost conditions.
Monopolies or oligopolies may use supernormal profits to fund research and development, achieving dynamic efficiency despite lacking static efficiency.
Compared using static and dynamic efficiency outcomes, including perfect competition, oligopoly and monopoly.
The AR curve is the firm's demand curve in all of these, whether it is horizontal or downward-sloping.
Topics that use Market structures
- Marginal, average and total revenue (AQA A-Level)
- Market structure, static efficiency, dynamic efficiency (AQA A-Level)
- Market structures (AQA A-Level)
Related terms
- Allocative efficiency
- Average revenue
- Barriers to entry
- Capital investment
- Collusion
- Conduct
- Dynamic efficiency
- Firm performance
Using Market structures in the exam
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