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A.

Competition Among the Many:


Pure Competition a market structure in which all firms sell an identical
product, all firms are price takers they cannot control the market price of
their product, all firms have a relatively small market share, buyers have
complete information about the product being sold and the prices charged
by each firm, and the industry is characterized by freedom of entry and
exit. Example: agricultural products such as rice.
Mobility the ability of an individual, family or some other group to
improve their economic status usually measured in income.
Break-even Graph line graph used in breakeven analysis to estimate
when the total sales revenue will equal total costs; the breakeven point
where lines or curves on the graph intersect with each other.
Long Term Equilibrium when the market price equates the quantity
demanded to the total quantity supplied by the number of firms in the
industry when each firm produces on its long-run supply curve.
Product Differentiation a marketing process that showcases the
differences between products. Differentiation looks to make a product
more attractive by contrasting its unique qualities with other competing
products. Successful product differentiation creates a competitive
advantage for the seller, as customers view these products as unique or
superior.
Plurality a voting rule in which decisions are made based on a plurality
of the votes. It is defined as the most votes obtained when more than two
candidates or options exist. But none receives a majority.
Full Knowledge - a system of consumption and production that is based
on intellectual capacity. It commonly makes up a large share of all
economic activity in developed countries, In a knowledge economy, a
significant part of a companys value may consist of intangible assets,
such as the value of its workers knowledge (intellectual capital).
Total Revenue Curve a curve that graphically represents the relation
between the total revenue received by a firm for selling its output and the
quantity of output sold. It is combined with a firms total cost curve to
determine economic profit and the profit maximizing level of production.
The slope of the total revenue curve is marginal revenue. The total
revenue curve for a firm with no market control is a straight line. The total
revenue curve for a firm with market control is hump-shaped.
Consumers Welfare concerned with efficient transactions and costsavings but it is also directed at social aspects of the market such as the
safety and health of consumers.
Free Entry is a condition in which firms can freely enter the market for
an economic good by establishing production and beginning to sell the
product.
Profit Maximization process by which a firm determines the price and
output level that returns the greatest profit.
Total Cost Curve graphically represents the relation between total cost
and the quantity of production. It combines all opportunity cost of

production into a single curve, which can then be used with the total
revenue curve to determine profit.
Monopolistic Competition a type of competition within an industry
where (1) all firms produce similar yet not perfectly substitutable
products; (2) all firms are able to enter the industry if the profits are
attractive; (3) all firms are profit maximizers and (4) all firms have some
market power, which means none are price takers. Example: restaurants
B. Competition among the Few:
Monopoly a situation in which a single company or group owns all or
nearly all of the market for a given type of product or service. It is
characterized by the absence of competition, which often results in high
prices and inferior products. Example: Davao Light.
Technical Monopolies situations in which the barriers to entry for an
industry or product are so high that it is not profitable for a second
company to make an attempt. It is a monopoly that occurs when a single
firm controls manufacturing methods necessary to produce a certain
product, or has exclusive rights over the technology used to manufacture
it.
Oligopoly a situation in which a particular market is controlled by a
small group of firms. In an oligopoly, there are at least two firms
controlling the market. Example: Airline Industry (Cebu Pac, PAL, Air Asia ..
)
Incomplete Collusion
Demand Curve in economics, the demand curve is the graph depicting
the relationship between the price of a certain commodity and the
amount of it that consumers are willing and able to purchase at that given
price. It is a graphic representation of a demand schedule.
Regulated Monopolies are organizations that are granted the legal
right to operate in an environment where there is freedom form
competition. The grant to operate in this manner is given by
governmental agencies, and there is recognition that the monopoly is
counter to traditional free- market theory and policy.
Kinked Demand Curve is an economic theory regarding oligopoly and
monopolistic competition. When it was created, the idea fundamentally
challenged classical economic tenets such as efficient markets and rapidly
changing prices, ideas that underlie basic supply and demand models.
Degrees of Collusion
Marginal Revenue is the additional revenue that will be generated by
increasing product sales by one unit. It can be described as the unit
revenue the last item sold has generated for the firm.
Price Determination interaction of the free market forces of demand
and supply to establish the general level of price for a good or service.
Truncated MR

Collusive Practices an arrangement between two or more parties


designed to achieve an improper purpose, including to influence
improperly that actions of another party.

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