Week 3

• What is Market?


  a group of buyers and seller of a particular good or service
• What do Buyers/Consumers determine?

  demand
• What do Sellers/Producers determine?

  supply
• "It is a seller's decision to produce."

  True
• Can you call a drug business a market?

  Yes
• What are the requirements for a business to be a market?

  buyers and sellers, presence, interaction
• What helps to answer the 3 key questions?

  model for the market
• What is in a market model?


  how different actors behave and interact; prices are determined; scarce resources are allocated
• What are the types of markets based on?

  various form, intensity of competition
• What are the various forms of a market?

  physical place, virtual place, unorganised market
• What is the full term for an unorganised market?

  unorganised collections of buyers and sellers
• Who meet and what is done in a physical market?

  buyers and sellers, auctioneer/broker help to determine the market price
• Give me examples of a physical place

  stock exchange, wholesale fish, meat or produce markets
• "Virtual place is not very popular nowadays."

  False
• Virtual place is also known as what interaction?

  indirect
• Give me examples of a virtual place

  US dollar market, e-commerce
• "In an unorganised market, administrative does not allow you to sell wherever you want."

  False
• "In an unorganised market, you can sell oranges at the stadium today and tomorrow at the university."

  True
• What is Monopoly?


  a firm that is the solo seller of a product without close substitutes
• What is Oligopoly?


  a market structure in which only a few sellers offer similar/identical products and dominate the market
• What is Monopolistic Competition?


  a market structure in which many firms sell products that are similar but not identical
• What is a Perfectly Competitive Market?


  a market in which there are many buyers and seller so that each has a negligible impact on the market price
• "In a monopoly, I am the only seller and people have no other option but to buy from me, since no one else gets the access to sell here."

  True
• Give me BRAND examples of a monopoly

  Google, VISA, Amazon, DB
• Give me examples of a monopoly.

  logistic, drug market, medicines for treating patients with cancer (specific medicine)
• How many people manage/control an oligopoly market? Is it restricted?

  5 to 6, yes
• Give me BRAND examples of an oligopoly

  Netflix, Coca-Cola, Nike, T-Mobile
• Give me examples of an oligopoly.

  cars, smartphones, airlines, telecommunication, bank, tv channels, soft drinks
• How many people manage/control a monopolistic competition? Is it restricted?

  500 to 1.000, lowkey
• Give me BRAND examples of a monopolistic competition?

  McDonald, Burger King, H&M, Zara, Dove, Nivea, Apple, Samsung, Starbucks
• Give me examples of a monopolistic competition.

  fast food chains, retail stores, cosmetics, electronics, beer, restaurant/coffee businesses
• Perfectly Competitive Market is also known as?

  Perfect Competition
• How many people manage/control a perfect competition? Is it restricted?

  5.000 to 10.000, no
• Give me an example of a perfect competition

  none
• What types of Demands do we have?

  individual, market
• Market model from the demand side is in other words, from which side?

  buyers/consumers
• The market model analyses the behaviour of buyers/consumers, it is also a what?

  determinant of demand for goods/services
• In neo-classical economics, the key determinant is what?

  price
• What is Quantity Demanded?


  the amount of a good that buyers are willing and able to purchase at different prices
• What is a Law of Demand?


  the claim that, other things equal the QD of a good falls when the price of the good rises