3.3.3 - Market structures and contestability

The concepts of:; allocative efficiency; productive efficiency; dynamic efficiency; X-inefficiency; efficiency/inefficiency in different market structures.

Use a - concepts of: • allocative efficiency • productive efficiency • dynamic efficiency • to connect the rule to the data and decision in the question.

This matters because a - concepts of: • allocative efficiency • productive efficiency • dynamic efficiency • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - concepts of: • allocative efficiency • productive efficiency • dynamic efficiency • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - concepts of: • allocative efficiency • productive efficiency • dynamic efficiency • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Calculation of n-firm concentration ratios. ratio.

Use a - calculation of n-firm concentration ratios. ratio to connect the rule to the data and decision in the question.

This matters because a - calculation of n-firm concentration ratios. ratio determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - calculation of n-firm concentration ratios. ratio to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Calculation of n-firm concentration ratios. ratio is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of concentration ratios.

Use b - significance of concentration ratios to connect the rule to the data and decision in the question.

This matters because b - significance of concentration ratios determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - significance of concentration ratios to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - significance of concentration ratios is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions of perfect competition. competition.

Use a - assumptions of perfect competition. competition to connect the rule to the data and decision in the question.

This matters because a - assumptions of perfect competition. competition determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions of perfect competition. competition to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions of perfect competition. competition is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Profit-maximising equilibrium in the short run and long run.

Use b - profit-maximising equilibrium in the short run and long run to connect the rule to the data and decision in the question.

This matters because b - profit-maximising equilibrium in the short run and long run determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - profit-maximising equilibrium in the short run and long run to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Profit-maximising equilibrium in the short run and long run is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The short-run shutdown point.

Use c - short-run shutdown point to connect the rule to the data and decision in the question.

This matters because c - short-run shutdown point determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - short-run shutdown point to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - short-run shutdown point is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Productive and allocative efficiency in the short run and long run.

Use d - productive and allocative efficiency in the short run and long run to connect the rule to the data and decision in the question.

This matters because d - productive and allocative efficiency in the short run and long run determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - productive and allocative efficiency in the short run and long run to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Productive and allocative efficiency in the short run and long run is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions of monopolistic competition. competition.

Use a - assumptions of monopolistic competition. competition to connect the rule to the data and decision in the question.

This matters because a - assumptions of monopolistic competition. competition determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions of monopolistic competition. competition to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions of monopolistic competition. competition is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Types of product differentiation:; physical - product features; marketing - advertising, packaging; distribution - shop, online, telephone.

Use b - types of product differentiation: • physical - product features • marketing - to connect the rule to the data and decision in the question.

This matters because b - types of product differentiation: • physical - product features • marketing - determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - types of product differentiation: • physical - product features • marketing - to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Types of product differentiation: • physical - product features • marketing - is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Profit-maximising equilibrium in the short run and long run.

Use c - profit-maximising equilibrium in the short run and long run to connect the rule to the data and decision in the question.

This matters because c - profit-maximising equilibrium in the short run and long run determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - profit-maximising equilibrium in the short run and long run to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Profit-maximising equilibrium in the short run and long run is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Productive and allocative efficiency in the short run and long run.

Use d - productive and allocative efficiency in the short run and long run to connect the rule to the data and decision in the question.

This matters because d - productive and allocative efficiency in the short run and long run determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - productive and allocative efficiency in the short run and long run to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Productive and allocative efficiency in the short run and long run is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions of oligopoly.

Use a - assumptions of oligopoly to connect the rule to the data and decision in the question.

This matters because a - assumptions of oligopoly determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions of oligopoly to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions of oligopoly is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Barriers to entry and exit:; economies of scale; limit pricing; patents; branding; sunk costs; legal.

Use b - barriers to entry and exit: • economies of scale • limit pricing • patents • branding • to connect the rule to the data and decision in the question.

This matters because b - barriers to entry and exit: • economies of scale • limit pricing • patents • branding • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - barriers to entry and exit: • economies of scale • limit pricing • patents • branding • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Barriers to entry and exit: • economies of scale • limit pricing • patents • branding • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Interdependence of firms:; simple game theory - two firm/two outcome model; reasons for collusive and non-collusive behaviour; cartels; price leadership; price wars.

Use c - interdependence of firms: • simple game theory - two firm/two outcome model • reasons to connect the rule to the data and decision in the question.

This matters because c - interdependence of firms: • simple game theory - two firm/two outcome model • reasons determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - interdependence of firms: • simple game theory - two firm/two outcome model • reasons to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Interdependence of firms: • simple game theory - two firm/two outcome model • reasons is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of collusion to producers, consumers, workers and governments.

Use d - costs and benefits of collusion to producers, consumers, workers and governments to connect the rule to the data and decision in the question.

This matters because d - costs and benefits of collusion to producers, consumers, workers and governments determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - costs and benefits of collusion to producers, consumers, workers and governments to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Costs and benefits of collusion to producers, consumers, workers and governments is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Price competition:; price wars; predatory pricing; limit pricing.

Use e - price competition: • price wars • predatory pricing • limit pricing to connect the rule to the data and decision in the question.

This matters because e - price competition: • price wars • predatory pricing • limit pricing determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - price competition: • price wars • predatory pricing • limit pricing to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - Price competition: • price wars • predatory pricing • limit pricing is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Non-price competition: (continued); advertising and branding; quality; endorsement; product placement; after-sales service.

Use f - non-price competition: (continued) • advertising and branding • quality • endorsement • to connect the rule to the data and decision in the question.

This matters because f - non-price competition: (continued) • advertising and branding • quality • endorsement • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - non-price competition: (continued) • advertising and branding • quality • endorsement • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Non-price competition: (continued) • advertising and branding • quality • endorsement • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of price and non-price competition to firms, consumers, employees and suppliers.

Use g - costs and benefits of price and non-price competition to firms, consumers, employees to connect the rule to the data and decision in the question.

This matters because g - costs and benefits of price and non-price competition to firms, consumers, employees determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - costs and benefits of price and non-price competition to firms, consumers, employees to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - Costs and benefits of price and non-price competition to firms, consumers, employees is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions of monopoly.

Use a - assumptions of monopoly to connect the rule to the data and decision in the question.

This matters because a - assumptions of monopoly determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions of monopoly to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions of monopoly is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Barriers to entry and exit.

Use b - barriers to entry and exit to connect the rule to the data and decision in the question.

This matters because b - barriers to entry and exit determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - barriers to entry and exit to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Barriers to entry and exit is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Profit-maximising equilibrium.

Use c - profit-maximising equilibrium to connect the rule to the data and decision in the question.

This matters because c - profit-maximising equilibrium determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - profit-maximising equilibrium to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Profit-maximising equilibrium is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of monopoly to firms and consumers.

Use d - costs and benefits of monopoly to firms and consumers to connect the rule to the data and decision in the question.

This matters because d - costs and benefits of monopoly to firms and consumers determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - costs and benefits of monopoly to firms and consumers to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - Costs and benefits of monopoly to firms and consumers is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The concept of 'natural monopoly' and its implications.

Use e - concept of 'natural monopoly' and its implications to connect the rule to the data and decision in the question.

This matters because e - concept of 'natural monopoly' and its implications determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply e - concept of 'natural monopoly' and its implications to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: e - concept of 'natural monopoly' and its implications is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Conditions necessary for third-degree price discrimination.

Use f - conditions necessary for third-degree price discrimination to connect the rule to the data and decision in the question.

This matters because f - conditions necessary for third-degree price discrimination determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply f - conditions necessary for third-degree price discrimination to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: f - Conditions necessary for third-degree price discrimination is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of price discrimination to firms and consumers.

Use g - costs and benefits of price discrimination to firms and consumers to connect the rule to the data and decision in the question.

This matters because g - costs and benefits of price discrimination to firms and consumers determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply g - costs and benefits of price discrimination to firms and consumers to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: g - Costs and benefits of price discrimination to firms and consumers is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Productive, allocative and dynamic efficiency.

Use h - productive, allocative and dynamic efficiency to connect the rule to the data and decision in the question.

This matters because h - productive, allocative and dynamic efficiency determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply h - productive, allocative and dynamic efficiency to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: h - Productive, allocative and dynamic efficiency is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Assumptions and conditions for a monopsony to operate.

Use a - assumptions and conditions for a monopsony to operate to connect the rule to the data and decision in the question.

This matters because a - assumptions and conditions for a monopsony to operate determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - assumptions and conditions for a monopsony to operate to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Assumptions and conditions for a monopsony to operate is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of a monopsony to firms, consumers and employees.

Use b - costs and benefits of a monopsony to firms, consumers and employees to connect the rule to the data and decision in the question.

This matters because b - costs and benefits of a monopsony to firms, consumers and employees determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - costs and benefits of a monopsony to firms, consumers and employees to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Costs and benefits of a monopsony to firms, consumers and employees is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Characteristics of contestable markets.

Use a - characteristics of contestable markets to connect the rule to the data and decision in the question.

This matters because a - characteristics of contestable markets determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply a - characteristics of contestable markets to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: a - Characteristics of contestable markets is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Implications of contestable markets for behaviour of firms on:; profitability; pricing decisions (limit pricing).

Use b - implications of contestable markets for behaviour of firms on: • profitability • to connect the rule to the data and decision in the question.

This matters because b - implications of contestable markets for behaviour of firms on: • profitability • determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply b - implications of contestable markets for behaviour of firms on: • profitability • to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: b - Implications of contestable markets for behaviour of firms on: • profitability • is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

Costs and benefits of contestability for firms and consumers.

Use c - costs and benefits of contestability for firms and consumers to connect the rule to the data and decision in the question.

This matters because c - costs and benefits of contestability for firms and consumers determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply c - costs and benefits of contestability for firms and consumers to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: c - Costs and benefits of contestability for firms and consumers is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.

The significance of sunk costs for contestability.

Use d - significance of sunk costs for contestability to connect the rule to the data and decision in the question.

This matters because d - significance of sunk costs for contestability determines what can be inferred or chosen; begin with the stated conditions and keep the conclusion tied to the evidence.

Example: apply d - significance of sunk costs for contestability to one small, clearly defined case, show the key step or comparison, and explain the result in words.

Boundary: d - significance of sunk costs for contestability is not a universal recommendation. Check the syllabus scope, assumptions, units and the limits of the evidence before generalising.