MGTA05H3 Chapter Notes - Chapter Section A: Perfect Competition, French Fries, Monopolistic Competition
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MGTA05H3 Full Course Notes
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Document Summary
Distinctive by decision making about production and allocation. Command economies, market economies, and mixed market economies. A system in which the government owns and operates all sources of production. Government owns and operates only selected major industries. Market: a mechanism for exchange between the buyers and sellers of a particular good or service. Input market: firms buy resources from households, which then supply those resources. Output market: firms supply goods and services in response to demand on the part of the households. In and out flow in a market economy: Encourages entrepreneurship by off erring profits as an incentive. Features characteristics of both command and market economies. Privatization: converting government enterprises into privately owned companies. Nationalization: converting private firms into government-owned firms. A2: demand and supply in a market economy. Demand: the willingness and ability of buyers to purchase a product or service. Supply: the willingness and ability of producers to offer a good or service for sale.
