ECON 1050 Chapter Notes - Chapter 10: Microsoft, Monopolistic Competition, Oligopoly
Document Summary
Economic decisions produce and sell goods and services. What to produce and in what quantities. How to organize and compensate its managers and workers. How to market and price its products. What to produce itself and buy from others. Is the cost of entrepreneurship and is an opportunity cost of production. Technological efficiency: least amount of inputs (quantities of labour, capital) Economic efficiency: (costs of labour, capital) Is a method of organizing production that uses a market-like. When there are many firms, each selling an identical product. Many buyers and no restrictions on the entry of new firms into the industry. Ex: the worldwide markets for corn, wheat, rice, and other grain products. When there is one firm only, which produces a good or service that has no close. The firm is protected by a barrier preventing new firms to enter the market. When a large number of firms compete by making similar but slightly different.