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MARKETS. COMPETITION. MONOPOLY - Coggle Diagram
MARKETS. COMPETITION. MONOPOLY
Supply and demand
Suppliers usually want the price that allows them to make the most money
Buyers want the price that gives them the most value for the least cost
Perfect market
Only one price for a given commodity: the lowest price which sellers will accept and the highest which consumers will pay
Real market
Competition influences the prices prevailing in the market
Prices inevitably fluctuate
Fluctuations are affected by current supply and demand
Competition
Monopoly
legal monopoly
natural monopoly
illegal monopoly (cornering the market)
the basic economic questions of what, how, for whom, and how much to produce
Market economy
Three basic resources
Land
Labour
Capital