economics 3

• Market structure


  The competitive environment in which buyers and sellers operate
• Competition


  Rivalry among various sellers in the market
• The market is a situation of diffused, impersonal competition among sellers who compete to sell their goods and among buyers who use their purchasing power to acquire the available goods in the market
• Market model


  A numerical representation of the interaction between market forces and economic situations that helps to forecast outcomes and plan activities
• Perfect competition


  • The market has a large number of independent sellers offering the same goods, so they have to compete against each other
  • No one seller and no one buyer can cause a change in the price of a good
  • It is easy for new firms to enter the market and for existing firms to leave
• Monopoly


  • There is only one producer or seller
  • Not all the products are exactly the same
  • The monopolist chooses the price
  • It is very hard for new firms to enter the market
• Monopolistic competition


  • There are many sellers acting independently
  • Products are not all the same
  • There is a limited control of price
  • New firms may have a very hard time entering the market
• Oligopoly


  • Only some firms are powerful in the market
  • Products are either the same or different
  • The producers agree on a price depending on what each of them wants
  • It is hard for new firms to enter the market
• Determinants of market demand

  • Government laws and policies
  • Technology
  • Business policies and practices
  • Economic freedom
• Contemporary economic issues facing the Filipino entrepreneur include migration, fluctuations in the exchange rate, oil price increases, unemployment, and peace and order
• Exchange rate


  The rate of conversion of the Philippine peso to a foreign currency, dependent on the demand for and supply of the currency in the market
• Overseas Filipino Workers (OFWs)


  Filipino laborers who find work in other countries, primarily due to high unemployment and wage gaps between the Philippines and developed economies
• Unemployment leads to a decrease in national income and government funds, and makes it difficult for people to buy basic goods
• Inflation


  When the prices of goods and services are high, which is bad for those with fixed incomes and can lead to a decrease in savings and investment
• Taxes


  Payments made to the government to provide public goods and services, which can dampen the incentive to do business but ultimately benefit society