Market Structures and Economic Indicators
Market Structures
Perfect Competition
Characteristics: Many bidders, no influence on price, clear barriers, homogeneous products, free external intervention, transparent information.
Imperfect Competition
Monopoly
Characteristics: One bidder, significant influence on price, closed barriers, homogeneous product, intervened market, transparent information.
Procedure: Determine market demand, decide production quantity, set price to match demand.
Limits: Legal (patents, franchises), economic (control of factors, economies of scale), informal (intimidation).
Oligopoly
Characteristics: Few bidders, some influence on price, closed barriers, homogeneous or differentiated products, intervened market, opaque information.
Strategies: Marketing, advertising, dumping.
Monopolistic Competition
Characteristics: Many bidders, some influence on price, open barriers, differentiated products, free market, transparent information.
Causes of Differentiation: Geographic location, quality, style, brand, advertising.
Market Share
A company’s market share is measured by comparing its sales to total market sales.
Consumer Manipulation and State Intervention
Manipulating consumers through emotions is a market failure.
State Intervention:
- Advertising must be truthful.
- Labeling must be accurate.
- Products must meet quality standards.
- Products should have warranties.
- Consumers have return rights.
Economic Indicators
Circular Flow
: first there is a real exchange; households contribute labor, natural resources and capital, and in return reciebn goods and services that companies producen.Para occurs there is a real exchange, monetary or financial flow by which companies provide money as income to the households in exchange for productivos.El factors destination of this flow is the expense. ProductoInteriorBruto: is the total monetary value of the current production of goods and services a country during a period (usually a quarter or year). The GDP is a quantity of flow, for counts only goods and services produced during the study phase. Besides the GDP does not account for goods or services that are the result of informal work (domestic work, exchange of services between acquaintances, etc.).. ProductoNacionalBruto: Defined as the value of all goods and services produced solely by national a country during a certain period, usually one year. Excluding foreigners working in the country and includes nationals working abroad. Renta: the sum of wages and salaries of employees plus the rents, plus interest on capital borrowed, plus benefits companies. percapita Income: We said that part of the national income corresponds, on average, every inhabitant, but not how that income is distributed SPENDING: the effect of cash flow that occurs in the circular economy and continuous. DESTINATIONS: private consumption + investment + public spending + exports-imports. UNEMPLOYMENT: This is a very important economic variable because it translates directly into changes in quality of life of the population. measure: population, working age and seek trabajo.desempleados fail to find a job.