MGTA01H3 Chapter Notes - Chapter 4: Monopolistic Competition, Market System, Oligopoly
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MGTA01H3 Full Course Notes
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Chapter 4 when buyer and sellers interact how markets work. Market: a bunch of activities, not a place. Entrepreneurs are permitted and encouraged to start a business. When buyers and sellers agree, both get what they want. Prices are set by buyers and seller negotiating: sellers hope to max revenue by charging as much as they reasonably can, buyer hope min expenses by spending as little as they can. Target market a particular group of people who share a number of similarities and who have similar needs and wants and are identified by the seller as being (cid:373)ost likely to buy a busi(cid:374)ess" products. Entrepreneur must know: who its potential customers are. Whom does the business want to communicate, interact, interest, excite, and make a sale to: what products they want, why they want them. A buyers ability to negotiate a good price depends on his ability to shop around or walk away for a better deal.
