Terms in this set (16)
A market that contains many buyers and sellers all selling identical goods with low barriers to entry. They are price takers with no control over their prices. (ex: bananas, oranges, gasoline)
a market containing a few (2-6) sellers, with high barriers to entry, product is the same (ex: Coke & Pepsi). They have some control over prices.
a market that contains many sellers, selling similar, but not identical products, with low barriers to entry. (ex: fast food hamburgers, jeans, sneakers, etc)
a legal entity owned by individual stockholders; they have limited liability, are legal entities, and are double taxed
a business owned and managed by a single individual; they are easy to start, have few regulations, but have short lifespans and the owner has unlimited liability.
a business organized owned by two or more persons who agree on a specific division of responsibilities and profits. They are easy to start, have few regulations, have specialization, but have unlimited liability for the partners.
a license that gives the inventor of a new product the exclusive right to sell it for a certain period of time. It's the government's way of rewarding personal innovation and risk-taking.
the legally bound obligation to pay debts and assume total responsibility, financial and otherwise, of your business
Other sets by this creator
Recommended textbook solutions
Macroeconomics: Institutions, Instability, and the Financial System10th Edition•ISBN: 9781319105990 (2 more)N. Gregory Mankiw
Other Quizlet sets
Flickr Creative Commons Images
Some images used in this set are licensed under the Creative Commons through Flickr.com.
Click to see the original works with their full license.