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Markets. Competition. Monopoly. - Coggle Diagram
Markets. Competition. Monopoly.
Setting the Price
The price determine WHY + mix of CC goods
Supply
Seller's side of a market transaction
Price makes the most money
Demand
Quantity consumers want
Price gives the most value for least cost
Market Dynamics
Creation of commodity market
BS communication: letter, phone, e-mail, agents
Perfect market
Communication easy, BS numerous, free competition
One price = equilibrium price
Inperfect market
Each CM is subject to special conditions
Competition influences the price
Price invetibaly fluctuate and affected by
Monopoly
Large numbers of seller not always availible
In some markets 1 or limited
Arise from a variety of causes
Distinguish several kinds of M
.
Types of Monopolies
State monopoly
Important goods and services, e.g. postal services
Natural monopoly
Geographical or geological circumstances
e.g. Canadian nickel, Egyptian ownership of the Suez : Canal
Legal monopoly
Law permits it to certain producers, authorities and investors
Sole trading opportunities
Company obtain complete control over particular commodities
Often illegal
e.g. USA anti-trust laws restrict such activities, Britain the Monopoly Comission prevent undesirable monopolies
Competition
Basic questions
What, how, for whom & how much to produce
Motivation
Among producers - the highest profits
Among consumers - the lowest prices
Is the only motives the MS considers
Markets of Basics Resources
Land
Labour
Competition among producer: best for the lower wages
Among workers: best for the highest wages
Understanding of future types of workers
Planning a career require study of statistics
Include ability to change the economy
Learn new skills to remain competitive
Capital