Four Market Structures & Labor

Front

Fill in the blank: Legal barriers in monopolies include government franchises and ________.

Back

licenses.

Front

In monopolistic competition, what is a characteristic of the market power of individual sellers?

Back

Some market power

Front

In a limited partnership, at least one partner is not active in the daily running of the business.

Back

True

Front

Fill in the blank: A corporation continues to exist even when shareholders sell their ownership of stock. This is known as ________.

Back

Unlimited Life

Front

Fill in the blank: Depreciation is a noncash charge because the money stays inside the firm rather than being paid to someone else. It is the gradual wear on ________.

Back

capital goods (factory, truck, machine, etc.)

Front

What is Cash Flow?

Back

The total amount of money being transferred into and out of a business, especially as affecting liquidity.

Front

To what point will Profit Maximizing Firms hire workers to?

Back

Firms will hire workers so long as the extra revenue each worker contributes (MRP) exceeds the cost (wage) of the additional workers.

Front

What is the relationship between wages and the number of workers employers want to hire at that wage?

Back

Labor demand

Front

Which of the following best describes the characteristics of weak, average, and strong demand?

Back

Weak demand is characterized by low consumer interest, average demand by moderate interest, and strong demand by high consumer interest.

Front

What would happen in a market with Average Demand-Strong Supply?

Back

Average Demand-Strong Supply refers to a market condition where the demand for a product is stable or average, while the supply is strong or abundant. In this scenario, the following outcomes can be expected:
1. **Price Stability**: With strong supply meeting average demand, prices are likely to remain stable. There won't be significant upward pressure on prices since supply is sufficient to meet the demand.
2. **Market Equilibrium**: The market may reach an equilibrium point where the quantity supplied equals the quantity demanded, leading to a balanced market.
3. **Consumer Satisfaction**: Consumers are likely to be satisfied as they can easily access the products they need without facing shortages or inflated prices.
4. **Potential for Surplus**: If supply continues to exceed demand, there may be a risk of surplus, where unsold goods accumulate, potentially leading to discounts or promotions to clear excess inventory.
5. **Impact on Producers**: Producers may experience stable revenues, but if the surplus persists, they might need to adjust production levels to avoid losses.