COMMERCE 1E03 Lecture 2: COMMERCE 1E03- Chapter 2
15 Jan 2019
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Document Summary
Must understand the role of canadian governments: macroeconomics looks at the operation of a nation"s economy as a whole. E. g. , how many jobs exist in the whole economy. Economics: two branches: microeconomics looks at the behaviour of people and organizations in particular markets. E. g. , how many people will be hired in a particular industry or in a particular region of the country. Free-market competition: many buyers and sellers for similar products (agriculture, stock market, perfect information, no buyer or seller is powerful enough to affect the price, distribution is important. Large # of sellers for unique but substitutable products (retail: pricing is important, oligopoly. Few large sellers / competitors for similar products (airlines, telecommunication, oil and gas) Legal for a limited time due to a patent / trademark. Political due to legal and regulatory powers: within the four basic forms of free-market competition, the basis of comparison is often. Importance of the 4p marketing mix (product, price, promotion, place)
