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MARKETS. COMPETITION. MONOPOLY - Coggle Diagram
MARKETS. COMPETITION. MONOPOLY
Setting the prices
Determining of the price
what is produced
how it is produced
who will buy it
what will be the mix of consumer and capital goods
Sides of a market transactions
seller's side
buyer's side
Expectation from market prices
allows sellers to make the most money
gives buyers the most value for the least cost
Creation of market for commodity
Types of monopoly
government monopolies
state planning and central control
natural monopolies
country has control over major natural resources
legal monopolies
law permit a full monopoly over product
Basics of a perfect market
communication between seller and buyer is easy
buyers and sellers are numerous
competition is free
ONE price for commodity
the lowest which sellers will accept
the highest which consumers will pay
Influence for the price
competition
supply and demand
MONOPOLY
situation in the market when the seller is only one
Motives of market system
the highest profits
the best goods at the lowest price
Three basic resources in a market economy
labour
wishes of employees and employers
capital
land