1.5.8 The dynamics of competition and competitive market processes
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Competition over time

Competition over time

Feedback loop showing supernormal profit, entry or threat of entry, greater rivalry, firm responses, consumer switching, lower margins, exit of inefficient firms, and higher efficiency over time

Competition is rivalry between firms as they try to win customers, sales and profit. In this topic, the key idea is that competition is a process over time, not just a snapshot of how many firms exist.

1.5.8 The dynamics of competition and competitive market processes Lesson

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