ECON 304 Lecture Notes - Lecture 9: Telstra, Market Concentration, Market Power
2 Oct 2020
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Specialisation less variety in work boredom from job. No specialisation low wages and long hours. Market power: ability of an individual firm to influence price by altering output. Price takers: highly competitive markets sellers have little control over price and must accept market price. Price makers: as competition drops, firms have more market power and can control price by restricting output. Non-price competition: competition through methods other than price (assuming that there is not much price competition) e. g. advertising, brand names, promotions. Homogenous product: standardised and consumers regard the products as identical. Barriers to entry: easy of entry/exit into an industry. Market structure: a system of classifying firms according to: number of buyers and sellers, freedom of entry/exit, nature of the product. Central planning: all economic decisions are made by an individual or a small group on behalf of a large group of individuals (if there was a shortage, this often would not be addressed)
