The brand of economics that looks at the behaviour of individuals and businesses. In other words, it examines how consumers and businesses react to changes in variables. For example, how do consumers react to price changes and how does quality affect this decision making.
A market that has Monopolistic structure can be seen as a mixture between a monopoly and perfect competition. Whilst monopoly and perfect competition are at completely different ends of the spectrum; monopolistic competition is somewhere in between.
When looking at the causes of monopoly, it is important to first define what it is.
Supply chain management is the management of goods and services that a business needs to turn raw materials into the final product.
It is an economic term that defines the trend for average costs to increase alongside output.
Vertical integration is where two businesses at different stages of the supply chain join together.
Porters 5 forces is a method used to breakdown and understand the competitive nature of an industry or business.
A market failure is said to occur when there is an inefficient allocation of resources. This can occur when the supply does not fully reflect demand. So there might be an undersupply or oversupply.
Economies of scale occur when a business benefits from the size of its operation. As a company gets bigger, it can benefit from a number of efficiencies.
Diminishing Marginal Returns occur when increasing production further results in lower levels of output.
Collective bargaining is the process where a group of employees ‘collectively’ negotiate with the employer.
