MGTA05H3 Chapter Notes - Chapter 5: Oligopoly

• School: UTSC
• Department: Management
• Course: MGTA05H3
• Professor: Chris Bovaird

Document Summary

Market: the interaction of buyers and sellers, exchanging information about products and services for sale. How prices are set: a would-be customer consumer, in search of a product/service, searchers for one or more vendors. Information is exchanged between consumer and vendor: a vendor, in search of a sale, tries to highlight the features and benefits of his product, prices are negotiated, a sale is made (or not) Entrepreneurs are permitted: consumers are able to have some choice between alternate suppliers, when buyers and sellers agree, both parties receive a benefit. Market structure: the various combinations of numbers of buyers and sellers, in a market: a market with very many sellers, a market with only a small number of sellers, a market with only one seller. Perfect competition: a market that is characterised by a large number of small sellers. All sellers offer more-or-less the same product, for more-or-less the same price, and buyers have lots of choice.