MGTA01H3 Lecture Notes - Lecture 3: Monopolistic Competition, Perfect Competition, Starbucks

• School: UTSC
• Department: Management (MGT)
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Some have lots of buyers and not many sellers and vice verca. Some have only one buyer and only one seller. In a market economy, the more sellers you have, the more chance buyers have to buy things and the more buyers you have, the more chance that sellers have to increase their price. Degrees of competition how many sellers are there and how much choice you have as a buyer. Big suppliers that can afford to advertise and brand on a large scale can charge extra. They are expensive and hard businesses to get into and hard to exit (barriers to entry and barriers to exit). These suppliers distinguish themselves from each other through branding. For example, the mobile service industry in canada, the canadian banking industry, airline industries, pipeline industries, the canadian beer industry, and petroleum defining and distribution industries.