COMMERCE 1E03 Lecture Notes - Lecture 2: Monopolistic Competition, Marketing Mix, Oligopoly
6 Feb 2018
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Document Summary
Economics is the study of how society chooses to employ resources (5 factors of production) to produce products and distribute them for consumption among various competing groups and individuals. Macroeconomics: looks at the operation of nation"s economy as a whole. Ex: how many jobs exist in the whole economy. Microeconomics: looks at the behaviour of people and organizations in particular markets. Ex: how many people will be hired in a particular industry or in a particular region of the country. Many buyers and sellers for similar products. No buyer or sellers is powerful enough to affect the price. Large number of sellers for unique but substitutable products. Only one seller and price is based on demand. Natural: resource based due to a large investment. Legal: for a limited time due to a patent/ trademark. Political: due to legal and regulatory powers. Within the 4 basic forms of free-market competition, the basis of comparison is often.
