|
The Economics
of Post
MOTION : The Postal
Service Should Remain A Monopoly.
Economic Definitions
This is a short glossary of technical economic terms mentioned in the debate
and are also part of the Cambridge 'A' Level Economics syllabi. They are
explained in layman logic below.
economies of scale- situation in which the
bigger the production, the cheaper it is to produce
free market- type of market where everyone
pays the same price regardless of age, gender or sex
indivisibility - situation in which
capital e.g. machinery is not used to fullest capacity
market segmentation - act of dividing
the market into identifiable groups based on age, gender, transport and
geographical boundaries.
monopoly - a sole supplier or service
provider for which there are no alternative suppliers or competitors
non-allocative efficiency - situation in
which monopolists intentionally cut production in order to maintain a high price
overheads - cost of running the facility,
housing the service. i.e. the cost of lighting, water usage and rent in a
grocery shop
price discrimination - technique of
charging different groups of people different prices for the same product or
service
supernormal profits - the difference
between total revenue and total cost when the revenue is greater than the costs
X-efficiency - also known as technical
inefficiency, a type of inefficiency induced by lack of competition
| Main Page |
|
