4 Types of Competition

Perfect Competition
Many buyers & Sellers
Single Product
No Restrictions on Firms
Same Products for Sale
Monopolistic Competition
Many Buyers
Large Number of Sellers
Similar in Nature
Satisfy the Same Need
Each Seller Produces Unique Product Features
Oligopoly
Market Where Few Sellers
Large
Sizable Investments into their Market
Market Actions of each Seller
Can Have a Strong Effect on Competition Sale and Price
Monopoly
A Market ,Only One Seller
No Competition
Price Set By Demand
R- E =P
Revenue- Expense = Profit
4 Factors of Product
Natural Resources
Labor
Capital
Entrepreneurship
4 Materials
Material
Human
Finical
Information
Adam Smith- Capitalism
(Wealth of Nations book 1776)
Karl Marx
Communism 1867 Das Capital
Gross Domestic Product (GDP)
total $ value of all
goods/ services produced by all ppl within one year
Consumer Price Index ( CPI)
Monthly index measures the changes in prices of fixed basket of goods purchased by typical consumer inflation
Producer Price Index ( PPI)
Index that measures prices that producers receive for their finished goods
4 Engage Restrictions of Trade
Equalize Balance of Trade
Protect New / Weak Industries
Protect National Security
Protect Health
Retaliate
Protect Jobs
Explain the concept of Equilibrium price
The intersection of a supply curve and a demand curve is called equilibrium or market price. Indicates a single price and quantity at which suppliers will sell products and buyers will purchase them.
Demand Curve- Top of Chart
Market Curve – Right Side of Chart
Supply Curve – Bottom Chart
Price per Unit – Left Side of Chart
Stock Market Crash
1929 South of Sea trading had no money tons of investors ended up being a scam
Great Depression- Dust down in South no crops unemployment @ 25-30 % government started WPA
1939-1945
World War II great time after war economy picked back up
1972
Shortage of Oil/ Gas
1983
Regan President invest rate sky high
Economy crashed / steal mills closed
1991
George Bushed I – Gulf War
Gas Prices really high another recession
2001
Stock Market Crash
911
2008
Housing Crash
Challenges in future
Service Economy
Education
Job Security
Environment
Globalization
Sustainability- ability to keep things going
Meeting needs of present w/out compromising the ability of future generations to meet their own needs