Free Market Basics
A system where businesses operate with little government control.
What is a free market?
One company controls the whole market.
What is Monopoly?
Competition usually lowers these for consumers.
What are prices?
A market with only one seller.
What is a monopoly?
In a free market, this group determines what products succeed.
Who are consumers?
Government legislate this type of competition.
What is perfect competition?
Competition encourages businesses to come up with new ideas.
What is innovation?
A market with many sellers selling nearly identical goods.
What is perfect competition?
The struggle between businesses for customers.
What is competition?
A market where many companies offer similar but slightly different products.
What is monopolistic competition?
Competition forces companies to improve this aspect of customer interaction.
What is customer service?
A monopoly may unfairly do this to prices.
What is control/set prices?
Government might step in when competition becomes unfair.
What is regulation?
A market dominated by just a few large firms.
What is an oligopoly?
Competition increases this, giving consumers many product options.
What is product variety?
Governments regulate monopolies to protect this group.
Who are consumers?