APPLICATION OF DEMAND AND SUPPLY

• The Philippine Product Market - The product market is characterized by exchange of goods and services.
• Aspects of Market Structure - Degree of Competition, Number of firms, Bargaining power of customers, Barrier of entry
• Barrier to entry – ease of penetrating the market characterized by: °high setup costs – huge amount of initial investment °Economies of scale – concept of producing in large quantity to spread the cost per unit °Exclusivity of resource
• Market structure - Perfect Competition, Monopolistic Competition, Monopoly, Oligopoly.
• Perfect Competition - Many firms selling identical goods
• Monopolistic Competition - Goods are slightly differentiated
• Monopoly - Single player that controls the market.
• Oligopoly - Only few players in the industry.
• The two factors that affect the labor market are: a) Labor supply and population growth.
• The Philippine Labor Market - Population Growth is the increase in the total number of individuals in the country.
• Labor force - is the total number of people identified as employed and unemployed.
• Employed - represents individuals who have a job either full-time or part-time.
• Unemployed- refers to people presently searching for a job, temporarily laid-off workers and applicants
• Unemployment and Wages - Frictional, Structural, Cyclical, Seasonal.