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Unformatted text preview: The equilibrium point, or market price Supply = Demand Market price is determined by supply and demand Competition with free markets Perfect competition- the market situation in which there are many sellers in a market and no seller is large enough to dictate the price of a product Monopolistic competition- the markets situation in which a large number of sellers produce products that are very similar but that are perceived by buyers as different Oligopoly- A form a competition in which just a few sellers dominate the market. Monopoly- a market in which there is only one seller for a product or service Benefits and Limitations of Free markets Free markets bring inequality Capitalism encourages businesses to be more efficient so they can successfully compete on price and quality Businesspeople and others may let greed dictate how they act...
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- Fall '10