Business Structures
This type of business has only one owner, and that owner has full control over decisions
What is a sole proprietorship?
This market structure has many firms, each selling identical products, and no single firm can influence the price.
What is perfect competition?
This type of monopoly exists when a firm controls the entire market due to its control over a key resource, like water or electricity
What is a natural monopoly?
This law states that as the price of a good increases, the quantity supplied also increases, assuming all other factors remain constant.
What is the law of supply?
This is a government-imposed maximum price for a good or service, usually set below equilibrium price, which causes shortages
What is a price ceiling?
In this type of business, two or more individuals share ownership, profits, and liabilities
What is a partnership?
In this market structure, firms sell differentiated products and have some control over prices
What is monopolistic competition?
This type of monopoly occurs when a firm is the only provider in a specific geographical area.
What is a geographic monopoly?
According to this law, when the price of a good increases, the quantity demanded decreases, assuming other factors remain constant.
What is the law of demand?
This is a government-imposed minimum price, typically above the equilibrium price, which can cause a surplus.
What is a price floor?
This type of business is a legal entity separate from its owners, who have limited liability
What is a corporation?
In this market structure, a small number of firms dominate the market, and they have considerable control over prices.
What is an oligopoly?
This type of monopoly arises when a firm holds a patent or exclusive technology that prevents others from entering the market.
What is a technological monopoly?
This is the point where the quantity supplied equals the quantity demanded, and no shortages or surpluses exist.
What is equilibrium?
The result of setting a price ceiling below equilibrium leads to this economic issue, where demand exceeds supply.
What is a shortage?
The owners of this business structure have unlimited liability, meaning they are personally responsible for the debts of the business.
What is a sole proprietorship or a partnership?
In this market structure, there is only one firm that controls the entire supply of a product or service.
What is a monopoly?
This type of monopoly is created by the government to provide a public service or to control certain industries.
What is a government monopoly?
When the quantity supplied exceeds the quantity demanded at a given price, this results in an excess of goods in the market.
What is a surplus?
If the government sets a price floor for a good above equilibrium price, it typically results in this.
What is a surplus?
This business structure has an indefinite lifespan, meaning it can continue even if the owner or shareholders change.
What is a corporation?
The barriers to entry are low in this market structure, allowing many firms to enter and exit the market freely.
What is perfect competition?
The government regulates monopolies to prevent these types of practices, which can harm consumers.
What is price gouging or monopolistic exploitation?
This occurs when the quantity demanded exceeds the quantity supplied at a given price, leading to shortages.
What is a shortage?
Price controls are often imposed by governments to protect consumers or ensure fair pricing in industries like rent or agriculture.
What is market regulation?