MGTA01H3 Lecture Notes - Lecture 4: Monopolistic Competition, Perfect Competition, Oligopoly
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MGTA01H3 Full Course Notes
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Lecture 4 ~ when buyers and seller interact markets. This week we will look at the following: market ~ what it means, not all markets are the same, more or less choice, degree of competition, perfect competition, oligopoly, monopoly, monopolistic competition. Market: a bunch of activities, not a place, the interaction of buyers and sellers exchanging information about products. Incentive is the change of making a pro t. In liberal, market based countries: anyone may start a business b, this should encourage lots of suppliers, this should give consumers lots of choice, more choice = better products, everybody bene ts. Perfect competition: characteristics, lots and lots of suppliers, all are small, more or less the same, must sell at the same price e. f. i. e. barber shop f. i. e. barber shop i. e. cartons of milk. Monopoly: only one supplier, can set whatever price it like c. d. i. e. lcbo.
