question
Natural Monopoly
answer
allows one firm to produce all output
question
Partnerships
answer
business owned and managed by 2 or more people
question
Sole Proprietorships
answer
business owned and managed by a single person
question
Forms of Non-Profit Competition
answer
-physical
-location
-service
-advertising
-location
-service
-advertising
question
Patent
answer
legally granted right to produce a product for given period of time
question
Barriers to Entry
answer
-technology
-profit margins
-property rights
-profit margins
-property rights
question
Fixed and Variable Costs
answer
fixed- HAVE to pay (rent)
variable- may change
variable- may change
question
Price Floor
answer
legal minimum price
question
Regulation and Deregulation
answer
regulation-government rules
deregulation- reducing or eliminating government regulations
deregulation- reducing or eliminating government regulations
question
Equilibrium Price
answer
supply and demand curves intersect.
the market reaches clearing price
the market reaches clearing price
question
Change in Quantity Supplied and Supply
answer
quantity- how much of the good is for sale
supply- any factor not price; affects firm's ability to supply
supply- any factor not price; affects firm's ability to supply
question
Price Ceiling
answer
legal maximum price that can be changed
question
Difference in elasticity and inelasticity
answer
elasticity- demand for product is highly responsive to price changes
inelasticity- inability to change quantity demanded
inelasticity- inability to change quantity demanded
question
what is supply?
answer
amount of goods available
question
Changes in supply
answer
-number of sellers
-technology
-expectations
-technology
-expectations
question
if prices rise, quantity demanded...
answer
decreases
question
factors of change in demand
answer
prices
question
factors in elasticity of demand
answer
-time horizon
-definition of market
-percent of income spent
-definition of market
-percent of income spent
question
2 things necessary for demand
answer
quantity demanded and inverse relationship
question
difference in normal good and inferior good
answer
normal- purchased MORE as income increases
inferior- purchased LESS as income increases
inferior- purchased LESS as income increases
question
difference in substitute and complement
answer
substitute- demand for one goes up, the other goes down
complement- demand for one goes up, the other goes up
complement- demand for one goes up, the other goes up
question
disadvantages of sole proprietors and partners
answer
-limited access to resources
-unlimited liability
-unlimited liability
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