Technological change can influence the structure of markets
New technology can change who dominates a market and how many firms survive in it. A single firm with a powerful new technology can push rivals out entirely.
Real World
Google's search algorithm gave it such a cost and quality advantage that rivals like AltaVista were eliminated, turning a once-competitive market into a near-monopoly.
Exam Focus
Link technology directly to a named market structure feature (e.g. barriers to entry) — vague answers lose evaluation marks.
Price Elasticity of Demand
PED = % change in quantity demanded ÷ % change in price
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