PRE-FINAL REVIEW APPLIED ECONOMICS

This refers to the requirements for a large production plants to a feasible operation in the

industry.

• Scale barriers

• Limited information

• Legal barriers

• Product Differentiation

The kind of market structure with a lesser degree of market concentration but still with a

significant market power is observed since few sellers are colluding or forming a cartel to set the

price that would give the maximum profit for the industry.

• Oligopoly

• Perfect Competition

• Monopsony

• Monopoly

This kind of market structure is considered the most concentrated with a single seller

determining the price that would maximize the profit of the business enterprise.

• Oligopoly

• Perfect Competition

• Monopoly

• Monopsony

This framework was developed by Michael Porter.

• SWOT Analysis

• Environmental Scanning

• PORTER’S Five Forces

• Industry Analysis

This refers to the number of sellers and buyers in the market.

• Market Entry

• Market Structure

• Market Concentration

• Product Differentiation

These are undesirable impacts of external factors because they can potentially impair the

profitability of firms in an industry.

• Strengths

• Weakness

• Threats

• Opportunities

Positive impacts of various external environments on the profitability of an industry.

• Strengths

• Weakness

• Threats

• Opportunities

Modifications in family structure and other _________ have impact on consumer behavior and

tastes.

• Changes in natural environment

• Demographic changes

• Social Changes

• Technological Developments

Like strengths, these are internal characteristics of firms or industry but unlike strengths they

mitigate the profitability of firms and industry.

• Weakness

• Opportunities

• Strengths

• Threats

In SWOT, these are internal characteristics of firms or industry that can contribute directly to the

profitability of firms and the industry.

• Weakness

• Opportunities

• Strengths

• Threats