Term
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Definition
| Obstacles that stop new firms entering a market. |
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Term
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Definition
| Not reducing costs to their lowest level - the gap between the actual and lowest possible cost. |
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Term
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Definition
| A grant of temporary monopoly rights over a new product. |
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Term
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Definition
| Ownership of rights, giving redress at law for copying by a third party. |
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Term
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Definition
| Taking a firm/industry into public ownership. |
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Term
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Definition
| Existing firm(s) in the industry. |
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Term
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Definition
| Setting a price so low that other firms will not enter the industry. |
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Term
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Definition
| Irretrievable costs that occur when a firm exits an industry. |
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Term
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Definition
| A firm with 25% or more of the market share. |
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Term
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Definition
| A way of distinguishing a product from that of competitors. |
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Term
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Definition
| Setting the price at the level of marginal cost. |
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Term
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Definition
| Setting the price at the level of average cost. |
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Term
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Definition
| Reduction in consumer and producer surplus when output is restricted to less than optimum level. |
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Term
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Definition
| Where an identical good/service is sold to different consumers at different prices for reasons not associated with costs. |
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Term
| First degree price discrimination |
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Definition
| When the discriminating firm can charge different prices to each individual customer. |
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Term
| Second degree price discrimination |
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Definition
| When the discriminating firm can charge different prices to different groups of customers. |
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Term
| Third degree price discrimination |
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Definition
| When the discriminating firm can charge different prices in different countries. |
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