MGTA01H3 Lecture Notes - Lecture 4: Liquor Control Board Of Ontario, Perfect Competition, Oligopoly

• School: UTSC
• Department: Management
• Course: MGTA01H3
• Professor: Chris Bovaird

Document Summary

Mgta01-lecture 4- chapter 4: when buyers and sellers interact how markets work. Market: the activities that occur at a specific location. Interaction of buyers and sellers (i. e. samples, how much are the prices, bargaining, etc. ) All markets are different : some have a lot of sellers. When there are a lot of sellers, the buyer has some choice but some markets have less sellers. Determines the variety of choice the power a buyer has and negotiating power that the. The combination of the numbers of buyers and sellers that happen to be in a market seller has. Oligopoly: small and limited number of sellers ( the buyer has limited choice, large supplies = well known businesses, businesses observe other"s moves, they differentiate) Downside to being an oligopolistic: barriers to exit large investment, etc. , you cannot just shut down a bank, airline company, etc.