It's Structural
Market Structure is the organization of a market based mainly upon the level of this
What is competition?
a single seller dominating a market
monopoly
Easily carried and transported, making transactions convenient
portable
the method used by a society to produce and distribute goods and services
economic system
a fixed dollar amount that reduces your taxable income
standard deduction
"theoretical”; only exists in a perfect world
What is perfect/pure competition?
illegal agreement between competing firms to manipulate a market for their mutual benefit
collusion
withstands repeated use and physical wear without significant deterioration
durable
a hope of reward that encourages someone to behave in a certain way
incentive
the portion of your gross income that is subject to taxation by the government
taxable income
a market structure that has only one seller of a particular product
what is a monopoly?
theoretical market structure with many buyers/sellers, identical products, perfect information, and free entry/exit, forcing firms to be price-takers
Perfect competition
Can be broken down into smaller units to facilitate purchases of different values
divisible
abstention by governments from interfering in the workings of the free market
laissez-faire
married standard deduction for 2024
$29,200
has all of the features of pure competition EXCEPT for the products are similar but not identical
What is monopolistic competition?
many firms selling similar but differentiated products
monopolistic competition
has no value of its own but is valuable because it can be exchanged for something else of value
representative money
the additional cost of producing one unit
marginal cost
a tax system in which the tax rate increases as the taxable income or wealth of an individual or entity increases
progressive tax
this structure has very few sellers that dominate the industry. Ex Cars, kitchen appliances, soft drinks
What is oligopoly?
market is shared by a small number of producers or sellers
oligopoly
a type of currency issued by a government and designated as legal tender, but it is not backed by a physical commodity like gold or silver
fiat money
the next best alternative given up when a decision is made
opportunity cost
total tax divided by taxable income
effective tax rate