Competition in Market Economy

Monopoly

Market structure with one producer dominating

Perfect Competition

Market with many small producers, no barriers to entry

Price Takers

Producers unable to influence market price

Competitive Markets

Markets with high rivalry among firms

Market Economy

Economic system with prices determined by supply and demand

Monopolistic Competition

Market with many firms selling differentiated products

Barriers to Entry

Factors hindering new firms from entering a market

Productivity

Efficiency in producing goods or services

Unit Costs

Cost per unit of production

Human Capital

Skills and knowledge of workers

Intervention

Government involvement to maintain market competitiveness

Market Research

Study to identify market gaps and customer needs

Patent

Legal protection of product ideas

Price Leaders

Firms setting high prices in the market

Non-Price Competition

Competition based on factors other than price

Market Structure

Number of firms in an industry and their behavior

Oligopoly

Market structure with a few large producers

Imperfect Competition

Market with some elements of perfect competition

Demand Curve

Graph showing how quantity demanded varies with price

Brand Loyalty

Customer preference for a specific brand

Monopoly Power

Ability of a firm to influence market conditions

Product Differentiation

Making a product unique from competitors

Customer Loyalty

Repeat business due to brand or service satisfaction

Monopolistically Competitive Markets

Markets with more competition than monopolies

Elasticity of Demand

Responsiveness of quantity demanded to price changes

USP

Unique Selling Proposition