Market Structures & Business Organizations
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- Market Structures & Business OrganizationsTaught by: Aiden Rhoades
- Today we are going over why a sole proprietorship could be in a perfectly competitive industry
- Sole proprietorships are the most common form of business structure. ... Examples of sole proprietors include small businesses such as, a local grocery store, a local clothes store, an artist, freelance writer, IT consultant, freelance graphic designer, etc
- Mr. Rhoades what is a soleproprietorship
- Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a "commodity" or "homogeneous"). All firms are price takers (they cannot influence the market price of their product). Market share has no influence on prices.
- Mr. Rhoades if those are the examples then what does a sole propietership look like in a perfectly competitive Market
- Pure or perfect competition is a theoretical market structure in which the following criteria are met: All firms sell an identical product (the product is a "commodity" or "homogeneous"). All firms are price takers (they cannot influence the market price of their product). Market share has no influence on prices.
- So if we compare the buisness structure with teh market structure you really don't have a sole propritership because everybody around would be selling the same thing.
- Monopoly-the exclusive possession or control of the supply of or trade in a commodity or service.Oligopoly-a state of limited competition, in which a market is shared by a small number of producers or sellers.monopolistic competitive-Textbook examples of industries with market structures similar to monopolistic competition include restaurants, cereal, clothing, shoes, and service industries in large cities.
- If we were to have a solepropitership the best market structure to have one is a Monopolestic competitive market because there are only a few firms that own that side of the market.
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