MGTA01H3 Lecture 4: MGTA01 Lecture 04 - When Buyers and Sellers Interact

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Private enterprise or state enterprise: no e(cid:454)a(cid:373)ples of (cid:862)pu(cid:396)e(cid:863) (cid:272)o(cid:373)(cid:373)u(cid:374)is(cid:373) o(cid:396) (cid:862)pu(cid:396)e(cid:863) (cid:272)apitalis(cid:373, most countries have mixed systems, with either more government (planned) or less government (market) Degrees of competition: the (cid:272)o(cid:373)(cid:271)i(cid:374)atio(cid:374) of the (cid:374)u(cid:373)(cid:271)e(cid:396)s of (cid:271)u(cid:455)e(cid:396)s a(cid:374)d selle(cid:396)s i(cid:374) a (cid:373)a(cid:396)ket is (cid:272)alled the (cid:862)deg(cid:396)ee of (cid:272)o(cid:373)petitio(cid:374)(cid:863) It is also (cid:272)alled (cid:862)(cid:373)a(cid:396)ket st(cid:396)u(cid:272)tu(cid:396)e(cid:863) structure of the market, i. e. how many people are on either side of the negotiation. It also determines how much negotiating power you will have as a seller: we recognize 4 degrees of competition, perfect, oligopoly, monopoly, monopolistic. Sehar qureshi: characteristics: lots of suppliers, all are small, more or less the same, and they all must sell at the same price. Probably none of them employ thousands of employees, none of them is capital intensive (whatever they are selling does not require vast amounts of financial resources)