MGTA01H3 Chapter Notes - Chapter 4: Perfect Competition, Oligopoly, Market Economy
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MGTA01H3 Full Course Notes
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Document Summary
Market: a bunch of activities, not a place. Market: the interaction of buyers and sellers, exchanging information about goods and services for sale: this doesn"t refer to a physical place but rather the activities that occur in those places. The internet is an example of a market: retailers attempt to advertise their products to attract customers to their websites and purchase their goods. Prices in a market are mainly set through negotiations: sellers try to change as much as they reasonably can, shoppers will attempt to get a deal by paying as little as they can. Elements in a functioning market: a would-be consumer, in search of a product of service, searches for one or more vendors, a vendor, in search of a sale, tries to highlight the features and benefits of his product. Information is exchanged between consumer and vendor: prices are negotiated, a sale is either completed or not.
