A concentration ratio measures the proportion of total industry sales controlled by the largest firms within the industry, typically the top four or eight firms.
A duopoly is a form of oligopoly where only two firms dominate the entire market. This market structure can lead to unique competitive behaviors and economic outcomes. The two dominant firms may collaborate or compete aggressively, impacting market prices, output, and overall industry dynamics.
A recognizable and cohesive group of economic performers, including producers, labor, and consumers, who interact largely together in a geographically or industry-defined space.
A market structure characterized by a few firms producing products that are virtually indistinguishable from one another. Examples include the petroleum industry and network television.
An imperfect market is a market structure where individual producers and/or consumers have the power to influence the prices and quantities of goods and services. Unlike in a perfectly competitive market, where no participant can affect the market outcome, imperfect markets are characterized by various market failures such as monopolies, oligopolies, and other forms of market power.
Monopoly refers to the control of the production and distribution of a product or service by one firm or a group of firms acting in concert, characterized by the absence of competition, leading to high prices and a general lack of responsiveness to consumer needs.
The monopoly price is the price arrived at in a market where the supply is controlled by a monopoly, typically higher than the price that would prevail under competitive conditions.
A market situation where there is only a single consumer of a good or service produced, giving that consumer substantial control over prices and terms.
An MTF is a European Union-regulated financial trading venue, offering a platform different from traditional stock exchanges to match buyers and sellers in a transparent and efficient manner.
A natural monopoly occurs in an industry where the most efficient producer is a single entity, typically due to high fixed costs and significant economies of scale. Most natural monopolies are utilities or similar entities.
An oligopoly is a market structure characterized by a small number of large firms dominating the market. This structure lies between perfect competition and monopoly and encompasses industries like automobiles, airlines, and telecommunications.
An oligopsony is a market structure where a small number of large buyers exert a significant control over the purchase of products from numerous sellers. This imbalance of power typically impacts pricing and bargaining dynamics.
A Perfect (Pure) Monopoly is a market structure dominated by a single producer, where no competition of any kind to that producer can arise, allowing them to exert significant control over prices and output.
A market condition wherein no buyer or seller has the power to alter the market price of a good or service. Characteristics of a perfectly competitive market include a large number of buyers and sellers, a homogeneous good or service, equal awareness of prices and volume, absence of discrimination in buying and selling, total mobility of productive resources, and complete freedom of entry. Perfect competition exists only as a theoretical ideal, also called pure competition.
Pure competition is a market condition where numerous producers and consumers exchange a homogeneous product, resulting in the largest output at the lowest price without any single entity influencing the market independently.
