Market Structures
Competition does this to the price of a good/service
What is produces the lowest price
Helps determine the level of competition
Market in which a single seller dominates
What is a monopoly?
Business owned by one person
Sole proprietorship
Amazon, Disney, Airbnb are examples of this business organization
Corporations
Has 2-4 firms dominating over 60% of the market
What is an oligopoly?
The greater this is the greater the competition
What is similarity of products
Barrier to entry descriptor
What is high
Legal entity owned by stockholders
Corporation
Disadvantage of partnerships
What is unlimited liability, lack of performance from one (or more), or potential for conflict
Many producers, identical products, easy entry into the market, no control over prices
What is perfect competition?
How easy it is to start a business
What are barriers to entry
Government grants exclusive rights to provide a good or service through copyright, patents, or licenses
What is government-created monopolies
Purchase of companies at all levels of production
Vertical integration
Four main factors of production
Land, labor, capital, entrepreneurship
Federal Commission Act
Anti Trust Laws
What is reasons monopolies break up?
Increase or decrease in supply and demand yields this market power
What is control over prices
Only one partner assumes liability the other(s) provide $
Limited partnership
Legal limit on how high a price can be for a good/service
What is a price ceiling
Organization of the market
What are market structures?
Attracting consumers through style, service, or location
What is non-price competition
Legislation designed to limit the formation or monopolies
Antitrust laws
Personally responsible for all business debts
Unlimited liability
State where supply and demand are balanced
What is equilibrium