Competition & Market Structures
What is the defining feature of pure competition?
No firm controls a large enough total supply to influence price
Why might a Sole Proprietorship be attractive to an entrepreneur?
Sole control over his/her business
What is a Ticker Symbol?
abbreviation used to uniquely identify publicly traded shares of a particular stock
What is Mr. Bartlett's sons name?
Maddux
How does a monopoly exercise its market power?
By restricting supply to control the price
Why might someone want to open a Business Franchise?
He/She wants to focus on sales, operations and leave marketing, branding, and other functions to the parent company
What happens when someone buys stock?
They are buying a share of the company
What was the final score of last Fridays football game?
42-0
How might members of an Oligopoly engage in collusion?
Might agree to limit supply to push up prices
What features of Corporations help them attract capital?
Limited Liability & sell of stock
Why do corporations sell stock?
To gain capital
To earn money to expand
Where is the worlds largest starbucks?
What is the purpose of Deregulation?
Remove government regulations that limit competition so consumers benefit from lower prices and/or better service
How are Cooperatives and Non-Profits similar?
Operate for the benefit of the group rather than make a profit
Why do individuals buy stock?
In the hope that stock will rise and they will make money
Provide an example of an Oligopoly
Airlines
What is the purpose of Anti-Trust laws?
Prevent firms from having large market share that they can manipulate control over prices
How does the Productivity of Labor affect wages?
More productivity = more wages
Less productivity = less wages
Who sets the price of stock to be sold?
The market interaction between buyers and sellers
What role does differentiation play in monopolistic competition?
It is the key feature of Monopolistic Competition without it everyone would be competing in a purely competitive market