LEARNING AIM C/D
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,Centre Number: Candidate Number:
, Centre Number: Candidate Number:
Table of Contents
Learning Aim D............................................................................................2
Learning Aim C............................................................................................9
Learning Aim D
Market Structure
A market structure is the different characteristics different types of markets have. These different
characteristics include how many companies are in the market, how competitive it is, and pricing
issues. Market structure how a business would operate in a specific market. There are 4 main market
structures. These are perfect competition, imperfect competition, monopoly and oligopoly.
Perfect competition is a market structure where there are many small companies that offer similar
products. In perfect competition, the companies and consumers can’t influence the market price in
any way. It is also easy to enter and leave the market without any barriers. An example of perfect
competition is the foreign exchange markets as currency is all similar and there are many different
currencies. It’s also not dominated by one single company.
Imperfect competition is a market structure where there are less companies than perfect
competition and the products can vary in quality, features and branding. In imperfect competition,
the companies in a market can influence the price of their products as they have more market power
which is because there are less companies in the market. It is also a little difficult for new firms to
enter the market. An example of imperfect competition is the airline industry as it has high barriers
to entry due to the extremely high cost of aircraft. It’s also dominated by a few companies.
A monopoly is a market structure where a single company dominates the entire market. The product
is unique or essential and it’s hard for other companies to enter the market due to high costs,
patents and government regulations. An example of a monopoly is the postal market in the UK
where the company that dominates it is Royal Mail. In a monopoly, the dominating company has the
most control over the price mainly because there are no competitors.
An oligopoly is a market structure where there are a small number of larger companies that
dominate the market. Therefore, these companies control most of the market share. These
companies are aware of their competitors’ actions therefore their decisions are influenced by their
competitors moves. The products in an oligopoly can offer similar products or different products. The
companies that dominate the market control the price. An example of an oligopoly is the mobile
phone industry which is dominated mostly by Apple and Samsung.
The market Costa Coffee operates in is an example of an oligopoly. The coffee market is dominated
by Starbucks, Greggs, Costa and Caffe Nero. Costa Coffee is the leading coffee shop chain in the UK
closely followed by their competitors. Costa Coffee along with their competitors have significant
control over product price. Large decisions such as introducing new products or adjusting prices are
CENTRE NUMBER:
,Centre Number: Candidate Number:
, Centre Number: Candidate Number:
Table of Contents
Learning Aim D............................................................................................2
Learning Aim C............................................................................................9
Learning Aim D
Market Structure
A market structure is the different characteristics different types of markets have. These different
characteristics include how many companies are in the market, how competitive it is, and pricing
issues. Market structure how a business would operate in a specific market. There are 4 main market
structures. These are perfect competition, imperfect competition, monopoly and oligopoly.
Perfect competition is a market structure where there are many small companies that offer similar
products. In perfect competition, the companies and consumers can’t influence the market price in
any way. It is also easy to enter and leave the market without any barriers. An example of perfect
competition is the foreign exchange markets as currency is all similar and there are many different
currencies. It’s also not dominated by one single company.
Imperfect competition is a market structure where there are less companies than perfect
competition and the products can vary in quality, features and branding. In imperfect competition,
the companies in a market can influence the price of their products as they have more market power
which is because there are less companies in the market. It is also a little difficult for new firms to
enter the market. An example of imperfect competition is the airline industry as it has high barriers
to entry due to the extremely high cost of aircraft. It’s also dominated by a few companies.
A monopoly is a market structure where a single company dominates the entire market. The product
is unique or essential and it’s hard for other companies to enter the market due to high costs,
patents and government regulations. An example of a monopoly is the postal market in the UK
where the company that dominates it is Royal Mail. In a monopoly, the dominating company has the
most control over the price mainly because there are no competitors.
An oligopoly is a market structure where there are a small number of larger companies that
dominate the market. Therefore, these companies control most of the market share. These
companies are aware of their competitors’ actions therefore their decisions are influenced by their
competitors moves. The products in an oligopoly can offer similar products or different products. The
companies that dominate the market control the price. An example of an oligopoly is the mobile
phone industry which is dominated mostly by Apple and Samsung.
The market Costa Coffee operates in is an example of an oligopoly. The coffee market is dominated
by Starbucks, Greggs, Costa and Caffe Nero. Costa Coffee is the leading coffee shop chain in the UK
closely followed by their competitors. Costa Coffee along with their competitors have significant
control over product price. Large decisions such as introducing new products or adjusting prices are
