• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Penpoin.

Better Knowledge. Your Insight Is Sharper

  • Business
    • Starting Business
    • Managing Business
    • Growing Business
  • Investing
    • Investing Fundamentals
    • Investment Options
  • Economic Context
    • Microeconomics
    • Macroeconomics
    • International economics

Market Structure

Government Intervention: Examples, Reasons, and Impacts

January 21, 2025 · Ahmad Nasrudin

What's it: Government intervention refers to the government's deliberate actions to influence resource allocation and market mechanisms. It can take many forms, from regulations, taxes, subsidies, to monetary and fiscal policy. In some cases, the

Price Taker: Meaning, Characteristics, and Examples

January 21, 2025 · Ahmad Nasrudin

What's it: A price taker refers to a firm that cannot influence market prices and can only set an output price at the market price. All firms in perfect competition are price taker.Conversely, in imperfectly competitive markets, some firms

Strategic Entry Barrier: Concept, Types, Examples

January 21, 2025 · Ahmad Nasrudin

What's it: Strategic entry barrier is actions taken by existing companies (incumbents) to deter new players from entering their market. It can take various forms, such as limit pricing, product differentiation, and loyalty schemes.Another term

Barriers to Entry: Types, and Impacts on Competition

January 21, 2025 · Ahmad Nasrudin

What's it: Barrier to entry is an obstacle that prevents or minimizes the opportunities for a new company to enter a market. A barrier arises because it is deliberately created by existing companies (incumbents) through predatory pricing and

Herfindahl-Hirschman Index: Concept, How to Calculate, Pros and Cons

January 21, 2025 · Ahmad Nasrudin

What's it: Herfindahl-Hirschman Index (HHI) is a measure of market concentration. You compute it by summing the squares of each firm's market share in the industry. This is an alternative to the n-firm concentration ratio.This index is important

Nash Equilibrium: Meaning, Concept and Examples

January 21, 2025 · Ahmad Nasrudin

What's it: Nash equilibrium is a game theory concept that determines the optimal solution in non-cooperative competition in which each player has no incentive to change their initial strategy. John Nash, an American mathematician, put it in

Collusion: Meaning, Influencing Factors, Types, Pros and Cons

January 21, 2025 · Ahmad Nasrudin

What's it: Collusion is tacit cooperation or agreement to deceive others and achieve mutual benefits for the parties involved. Such agreements exist to avoid direct competition, reduce market uncertainty, and achieve higher profits. Collusion is

Monopoly Power: Meaning, Sources, and Effects

January 21, 2025 · Ahmad Nasrudin

What's it: Monopoly power refers to a firm's ability to influence market prices. It is weak when the market is made up of many players, and products are relatively homogeneous. Market power is higher when firms operate under an oligopoly, where the

Market Failure: Types, Effects, and Solutions

January 21, 2025 · Ahmad Nasrudin

What's it: Market failure refers to a condition in which the market mechanism doesn't work, thus creating inefficiency in the market. Demand, supply, and price aren't in equilibrium. As a result, markets fail to allocate economic resources most

Externalities: Meaning, Types, and Solutions

January 21, 2025 · Ahmad Nasrudin

What's it: Externalities are costs or benefits of economic activities borne by third parties who are not involved in it. They are not reflected in the final cost or benefit of the goods or services produced.Economists view externalities as

Cartel: Goals, Examples, Characteristics, Effects, and Reasons for Failure

January 22, 2025 · Ahmad Nasrudin

What's it: A cartel is a formal agreement between several parties to increase economic benefits. It can appear on both the market demand and supply sides, although the latter is more common.Cartel objectivesA cartel is a form of

Cournot Model: Concept, Assumption, Solution, and Criticism

January 21, 2025 · Ahmad Nasrudin

What's it: A Cournot model is one of the economic models to explain the oligopoly market. This model assumes that the firm independently decides the profit-maximizing level of production. I mean, they don't depend on how many competitors are

« Previous Page
Next Page »

Primary Sidebar

TRENDING

  • Span of Control: Importance, Types, Advantages, Disadvantages
  • Middle-Level Management: Examples, Roles, Skills
  • Understanding Factors in the Business Environment: A Deep Dive for Their Lists (Concise Explain)

LATEST

  • Key Factors to Consider Before Investing In Fixed-Income Securities
  • 4 Risks Associated with Fixed-Income Investments
  • 4 Benefits Investing in Fixed-Income Securities

Copyright © 2025  ·  Contact Us  ·  About Us  ·  Terms of Use  · Privacy Policy and Disclaimer  · Affiliate Disclaimer·  Comment Policy