Competitive and concentrated markets

Product differentiation

real or imagined differences between competing products in the same industry

Market structures

models of how the firms in a market interact with buyers to sell their output

Competitive market

a market in which there are many buyers and many sellers so that each has a negligible impact on the market price

Non-competitive market

a market with few buyers and few sellers so that each buyer and seller is a price maker

Monopoly

A market in which there are many buyers but only one seller.

Oligopoly

A market structure in which a few large firms dominate a market

Monopolistic power

The ability of one firm to set the price and output of the market, due to lack of competition

Labour market

The market where labour is bought and sold. People supply their labour and it is in turn demanded by firms.

Wage determination

Determination of wages through forces of demand and supply

Demand for labour

The number of workers firms are willing and able to employ at a given wage rate.

Supply of labour

The total number of workers that are willing and able to work at a given wage rate.

Wage differentials

The difference in wages between workers in different occupations and different regions.

Gross pay

the total amount of an employee's earnings before deductions are taken out

Net Pay

Amount of income left after taxes and deductions have been taken out.