MGMA01H3 Lecture : The Competitive Market
Document Summary
Free market- canadians live in a free-market society. This is an economic system that permits profit, competition, and private property. Profit- the amount of money left over from the sale of goods or services after all expenses have been paid; the reward that an owner receives for taking risks. Competition- creates a desire to achieve our money. Perfect competition: is a market characterized by a large number of small companies, N none of whom have an opportunity for market control. N having an opportunity for a degree of market control. Monopolistic competition: is a market consisting of a large number of companies, each. Oligopoly: is a market with a small number of large companies, each with a substantial. Monopoly: is a market in which a single company has complete market control. Research and development department- a portion of the company that supports the creation of new products. Products that are very similar are in direct competition for consumer dollar.
