1-6 Types of Competition
-Competition is a rivalry among businesses for sales to potential cutomers
-Four Different Types of Competition : 1. Perfect-Many- Ex. Corn, Wheat, Peanuts, 2. Monopolistic-Many- Ex. Clothing, shoes, 3. Oligopoly- Few-, Ex. Automobiles, cereals, 4. Monopoly- One- Ex. Software Protected by copyright, Many Local Public Utilites
1-6a Perfect Competition is the market situation in which there are many buyers and sellers of a product, and no single buyer or seller is powerful enough to affect the price of that product.
-The basics of supply and demand - The supply is the quantity of a product that producers are willing to sell at each of various prices.
-The demand is the quantity of a product that buyers are willing to purchase at each of various prices.
-The Equilibrium, or Market, Price - the market prices of any product is the price at which the quantity demanded is exactly equal to the quantity supplied.
1-6b Monopolistic Competition - is a market situation in which there are many buyers along with a relatively large number of sellers.
-Product differentiation is the process of developing and promoting differences between one's products and all competitive products.
1-6d Monopoly - is a market (or industry) with only one seller, and there are barriers to keep other firms from entering the industry