Dominant Firms GCSE
Dominant Firms: Impact on consumers and producers plus issues of control and regulation
Dominant Firms
Part 1 A
Definition (2 marks): A dominant firm is one which accounts for a significant share of a given market and has a significantly larger market share than its next largest rival. Dominant firms are typically considered to have market shares of 40 per cent or more.
Part 1 B
Key features of a dominant firm include:
High market profile – A well known name/brand amongst their competing market and industry.
Limiting competition –
Can set market supply –
Control of market price – The high market share and power means that the dominant firm has control of the market price instead of the market as a whole.
Monopolies – A monopoly is an economic market condition where one seller dominates the entire market. A monopoly occurs if a firm has 25% of the market shares. A natural monopoly can happen when it is most efficient for production e.g. Post office
Oligopoly – An oligopoly is an economic market condition where numerous sellers have their presence in a single market. There is usually barriers to entry. There is also interdependence between firms so they are usually always competing and having to watch and respond to other competitors.
Market share – The portion of a market controlled by a particular company or product.
Dominant Firms: Impact on consumers and producers plus issues of control and regulation
Dominant Firms
Part 1 A
Definition (2 marks): A dominant firm is one which accounts for a significant share of a given market and has a significantly larger market share than its next largest rival. Dominant firms are typically considered to have market shares of 40 per cent or more.
Part 1 B
Key features of a dominant firm include:
High market profile – A well known name/brand amongst their competing market and industry.
Limiting competition –
Can set market supply –
Control of market price – The high market share and power
Dominant Firms
Part 1 A
Definition (2 marks): A dominant firm is one which accounts for a significant share of a given market and has a significantly larger market share than its next largest rival. Dominant firms are typically considered to have market shares of 40 per cent or more.
Part 1 B
Key features of a dominant firm include:
High market profile – A well known name/brand amongst their competing market and industry.
Limiting competition –
Can set market supply –
Control of market price – The high market share and power means that the dominant firm has control of the market price instead of the market as a whole.
Monopolies – A monopoly is an economic market condition where one seller dominates the entire market. A monopoly occurs if a firm has 25% of the market shares. A natural monopoly can happen when it is most efficient for production e.g. Post office
Oligopoly – An oligopoly is an economic market condition where numerous sellers have their presence in a single market. There is usually barriers to entry. There is also interdependence between firms so they are usually always competing and having to watch and respond to other competitors.
Market share – The portion of a market controlled by a particular company or product.
Dominant Firms: Impact on consumers and producers plus issues of control and regulation
Dominant Firms
Part 1 A
Definition (2 marks): A dominant firm is one which accounts for a significant share of a given market and has a significantly larger market share than its next largest rival. Dominant firms are typically considered to have market shares of 40 per cent or more.
Part 1 B
Key features of a dominant firm include:
High market profile – A well known name/brand amongst their competing market and industry.
Limiting competition –
Can set market supply –
Control of market price – The high market share and power