Main definitions

edwinesosa's version from 2015-06-06 07:09


Question Answer
x inefficiencywhere dominant firms become less efficient due to a lack of incentives to cut costs due to low competition and so prices rise
vertical forwards intergrationtaking over a firm in a later stage of their chain of production in the same industry
external EOSfactors affecting the industry that cause LRAC to fall as output increases
profit satisficingmaking sufficient profit to satisfy the demand of shareholders
sunk costscosts that are not recoverable once a firm leaves an industry
market concentrationthe extent to which a particular market is dominated by a few firms
tacit collusioninformal collective agreements between firms not to compete with each other in an attempt to increase industry profits high and restrict competition
first mover advantageform of competitive advantage that a company gains by being the first to enter a specific market/industry
PPIWhere the private sector builds and maintains infrastructure and leases it to the government
PPPwhere the private sector and public sector collaborate to deliver goods and services
competitive tenderingintroducing competition amongst private sector firms which put in bids for work which is contracted out by the public sector
contracting outgetting private sector firms to produce goods/services which are then provided by the state for its citizens

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