Prices
Give an example of a price ceiling
Housing/Rent
Fuel/Energy
Medicine/Health Care
Raw Materials
Hourly Wages
Packaging Materials
Shipping Costs
A single seller in a market is known as...?
A monopoly
Name a disadvantage of a sole proprietorship
Unlimited Liability
Sole Responsibility
Limited Growth Potential
Lack of Longevity
When QS is greater than QD you get a:
Surplus
Price controls such as a price ceiling can lead to
A shortage
Three stages of production according to the law of diminishing returns.
Increasing Marginal Returns
Diminishing Marginal Returns
Negative Marginal Returns
If products are identical, this would most likely be what type of competition
Perfect Competition
This business structure is legally distinct from the owners
Corporation
A negative externality
If the market fails to distribute goods, the government may decide to ____________ goods/services
Ration
The additional costs of producing one more unit
Marginal Cost
A market with a few large sellers is most likely a
Oligopoly
Guaranteed dividends are a characteristic of what
Preferred Stock
A government regulation that sets a minimum level for prices is called:
A price floor
What is one problem with rationing?
Fairness
Costly
Distorts Incentive
Abuse and Black Markets
How do you calculate total cost?
TC = FC + VC
FC= Fixed Cost
VC= Variable Cost
A technological monopoly can be caused by what
Patents
Trademarks
Copyright
What is advantage of a partnership
Relatively Easy Start Up
Specialization
Shared Decision Making
Shared business losses
Name the key difference between monopolistic competition and perfect competition
Products are slightly different in monopolistic competition, rather than identical like in perfect competition
Price floors often lead to ________ where price ceilings often lead to __________
Surplus
Shortage
If marginal product decreases as you add more inputs - this would be what type of returns
Diminishing Marginal Returns
A general store in a remote area is an example of
A Geographic Monopoly
Application that new corporation makes to obtain a license
Articles of Incorporation
Monitor and regulate big business
prevent and dismantle monopolies
take a less "laissez- faire" approach than had been used before