Glossary Category: Market Structures - Page 3 - 3auk

barriers to exit

Barriers to exit are obstacles that prevent a company from leaving an industry, even when the business is

A natural monopoly occurs when a single company can supply the entire market at a lower cost than

Monopolistic competition is a market structure where many companies sell products that are similar but not identical. It

The Prisoner’s dilemma is a classic model in game theory. It demonstrates why two parties may choose not

The concentration ratio measures the level of market concentration. It shows the share of total industry production controlled

A monopoly maximizes profit by following the MR = MC rule (Marginal Revenue equals Marginal Cost). However, because

A collusive oligopoly happens when companies in a market work together instead of competing. By cooperating, they aim

A non-collusive oligopoly exists when a small number of firms operate in a market and compete independently. There

Long-run equilibrium in a perfectly competitive market occurs when all production factors can change, and firms earn only

In a perfectly competitive market, a firm achieves its short-run equilibrium at the level of output where Marginal