MGTA01H3 Chapter Notes -Monopolistic Competition, Perfect Competition, Equilibrium Point

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Published on 17 Apr 2013
School
UTSC
Department
Management (MGT)
Course
MGTA01H3
Professor
Ch. 1 understanding the Canadian business system:
Business: the organizations that produce/ sell goods/ services to make a
profitextend to wage paid to workers and to taxes that support government
functions
Profits: the difference btw a business’ revenues and expensesencourage
individuals and organizations to open and expand businesses
Economic system: a nations system for allocating its resources among its
citizens
Differ in labor, capital, entrepreneurs, natural resources
Information resources:
Produce tangible goods
Business rely heavily on market forecasts, the specialized expertise
and knowledge of people, and various forms of economic data for
much of their work
the creation of new information/ the repackaging of existing
information of new users and different audiences
Capitalism:
Private ownership of the factors of production and encourages
entrepreneurship by offering profits as an incentive
Base on the operation of demand and supply
Mixed market economy:
Command + market economies
Privatization: converting government enterprises into privately owned business
new enterprise reduced its payroll, boosted efficiency and productivity, and
quickly became profitable
Deregulation: the reduction in the number of laws affecting business activity
and in the powers of government enforcement agencies
Do what they want without government intervention
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Canadian Government
As Customer: the gov is the biggest purchaser many business depend on it
As competitor: through Crown corporations (accountable to minister of
parliament for their conduct, exist at the provincial and federal level, important
economic activity)
As regulator: (reason) protecting competition, consumers, achieving social goals,
protecting the environment
As taxation agent:
Revenue taxes: are levied 徵收 by governments primarily to provide
revenue to fund various services and programs
Progressive revenue taxes: at higher rate on higher-income
taxpayers and at a lower rate on lower-income taxpayers
Regression revenue taxes: at the same rate regardless of a persons
income
Restrictive taxes: to control certain activities that legislators believe
should be controlled
As provider of incentives 鼓勵:
Incentive programshelp stimulate economic development ($)
Through the many services they provide to business firms through
government organization
o Statistic Canada: provide data and analysis on almost every
aspect of Canadian society
Municipal tax rebates for companies that locate in certain areas
May cause difficulties with our trading partners
As provider of essential services:
Federal: highways, the postal service, the minting of $, the armed
forces, statistical data on which to base business decisions, tries to
maintain stability through fiscal and monetary policy
Provincial + municipal: streets, sewage and sanitation systems,
police and fire departments, utilities, hospitals, education…
The law of Demand and Supply
Demand: the willingness and ability of buyers to purchase a product/
a service
Supply: the willingness and ability of producers to offer a good/
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Document Summary

Business: the organizations that produce/ sell goods/ services to make a profit extend to wage paid to workers and to taxes that support government functions. Profits: the difference btw a business" revenues and expenses encourage individuals and organizations to open and expand businesses. Economic system: a nation"s system for allocating its resources among its citizens. Differ in labor, capital, entrepreneurs, natural resources. Business rely heavily on market forecasts, the specialized expertise and knowledge of people, and various forms of economic data for much of their work. The creation of new information/ the repackaging of existing information of new users and different audiences. Private ownership of the factors of production and encourages entrepreneurship by offering profits as an incentive. Base on the operation of demand and supply. Privatization: converting government enterprises into privately owned business. New enterprise reduced its payroll, boosted efficiency and productivity, and quickly became profitable.

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