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1.5.8 The dynamics of competition and competitive market processes

Why is competition a dynamic process rather than only a battle over price?

A

Dynamic rivalry - firms improve products, cut costs and raise service quality over time.

B

Static rivalry - firms preserve products, maintain costs and hold service quality constant over time.

C

Market sharing - firms divide customers, increase costs and reduce service quality over time.

D

Price leadership - firms follow one market leader’s prices and avoid service changes over time.

1.5.8 The dynamics of competition and competitive market processes Flashcards

  1. A Level
  2. /Economics
  3. /1.5.8 The dynamics of competition and competitive market processes

Flashcards for AQA A Level Economics 1.5.8 The dynamics of competition and competitive market processes, covering the key terms, economic models and case studies you need to recall for Paper 1, Paper 2 and Paper 3. 21 cards, matched to the AQA A Level Economics (7136) specification.