MGTA05H3 Study Guide - Midterm Guide: Monopolistic Competition, Sole Proprietorship, Economic System
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MGTA05H3 Full Course Notes
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Document Summary
The economic system provides goods and services of value to customers. Factors of production: (sources if value to create value: natural resources (raw materials, labour (workers, capital (money and credit, entrepreneurs (small business or new businesses owners, information. Three kinds of economics systems: command systems, market-based systems, mixed systems. Forms of business organization: sole proprietorship, partnership, corporation. The combination of the numbers of buyers and sellers in a market, degree of competition . Some markets have many sellers (good for buyers, lots of choice, fair price) Some markets have few sellers (less choice, good for sellers, higher price) Some markets have only one seller (no choice, great for sellers, high price. We recognise 4: perfect competition, oligopoly, monopoly, monopolistic competition. Perfect completion: lots and lots of suppliers. All sell at more or less same price. Monopolistic competition: lots and lots of sellers. (no barriers to entry). Oligopoly competition: small number of suppliers.
