Competition

Perfect competition - these markets have many small firms producing virtually identical products at very similar prices.

Imperfect competition - is the opposite to perfect competition and is when one firm dominates the market and can influence the suppliers and pricing strategies, examples of this can include Monopoly.

Their are a number of benefits of a perfectly competitive market for the consumer, as with the high levels of competition a number of pricing strategies will be employed as well as special offers, this will in turn provide more value for money for the consumer.

Oligopoly - is a market structure with few firms in a market, all of whom consider rivals' reactions before introducing new policies.

Monopoly - is a theoretical market situation where a single producer supplies a particular market

Cartel - operates when a group of producers collude to set prices and (Sometimes) to share out markets. Cartels are illegal in most countries.

Market leader - The company or brand with the largest share in the market.

Barriers of entry are obstacles that make it difficult to enter a specific market, for example, this can include government regulation,  a monopolised market, start up costs, supplier loyalties

Barriers of exit are obstacles that a firm must over come to leave a market, for example, this can include high redundancy cost, closure costs, contracts with suppliers, high investment in non transferable fixed assets (such as machinery that is manufactured for one specific task)

Large businesses can greater influence there suppliers, as if the business is substantially larger than the other competition it can demand preferable treatment by receiving there deliveries first of being able to choose from a bigger selection as they are spending the most money.

What possible side affects are their of a business growing larger?

• risk, of potential spending money expanding the business, however sales do not increase
• sacrifice profits to gain more control of the market.
• they may cut prices to sell more, reducing profits
• expenditure on more equipment and facilities 

Limit price? a limit price is a price set by the monopolist to discourage entry in to a market, the limit price is often lower than the average price of production, or just low enough to make entering non profitable, limit pricing is illegal in most countries.

Contest ability? a perfectly contestable market has three main features

1. No barriers of entry of exit
2. No sunk costs
3. Access to the same level of technology

Brand proliferation?  is when a firm puts out new brand names under the same product lines, by doing this you can compete with more expensive or less expensive products in the market without damaging your brand name.

Highlight the advantages and disadvantages of a monopoly to stakeholders

advantages 

• Market leader sets the trend 
• if a chain of a monopoly opens in an area it can bring business to that area
• provide jobs
• high expenditure to the government in taxes

Disadvantages

• can become to big and discourage sales in local shops
• can pollute the environment
• can push other local firms out of the market

Monopsony power? this is a market where one buyer faces many sellers, it is an example of imperfect competition, the monoponist can dictate terms to its suppliers as it is the sole trader in the market.