Market Structure CC
Fish Markets and Agriculture
Pure market competition
The physical and mental process used to produce goods or services
Labor
A legal entity with an existence distinct from the people who organize it, own it, and run it?
What is a Corporation
This type of business is owned and operated by a single individual
A sole proprietorship
Inflation, Unemployment, Economic growth
Macroeconomics
Fast food, local restaurants, and brands like Nike
Monopolistic competition
Labor strikes
This corporation offers limited liability combined with the single taxation of business income?
What is an S Corpration
This business structure involves two or more individuals who share management and profit
A partnership
Labor, Land, and capital to firms through the factor market, in return, firms pay households wages, rent, and profits.
circular flow model between households and firms
Needs competition to thrive to maintain price control
Oligopolies
Workers join forces to improve their pay and working conditions
Labor union
Colleges, charities, labor unions, and some hospitals are all examples of this type of organization?
What is a Non-for-profit organization
This type of business model allows individuals to operate a business under the name and system of an established company.
A franchise
Households act as consumers, they spend their income on goods and services produced by firms. It drives demand in the economy.
Product differentiation
A law that allow employees to choose whether or not to join a union and pay union dues
Right to work law
This company, founded in 1975 by two childhood friends, became the world's largest software maker and revolutionized personal computing?
What is Microsoft
This business structure combines elements of partnerships and corporations
Limited liability
Arrows point from households to the product market and from the product market to firms
Arrows from households to the product market represent consumer spending on goods and services. The arrows from the product market to firms represent the revenue firms receive from selling these goods and services.
A company with unique product would require high payout.
High entry barriers
A representative negotiates with the employer about wages, employee benefits and working conditions
Collective bargaining
This online retailer started in a garage in 1994, originally selling books, before becoming one of the worlds largest e-commerce and cloud computing companies?
What is Amazon
This business is a legal entity that is separate from its owner, offering limited liability protection.
A corporation
Illustrates the continuous movement of money, goods, and services between different sectors. Shows how households and firms interact in the markets, how income is generated and spent, and how economic activities are interconnected, providing a simplified representation of the complex economic processes.
*How does the circular flow model help in understanding the overall economy