Economy Project
Storyboard Text
- Introduction
- Breaking NewsMarket Structures and Business OrganizationsRicky Dunn - 5th
- Define
- Box and Buds
- Welcome back to Box and Buds, I'm Bryan with my Co-Host Lisa, and today we will be going over Market Structures and Business Organization!
- Thanks for having me on Bryan! Market Structures refer to how different industries are classified based their degree and competition for goods and service, which are determined by factors such the difficulty of entering of exiting the market. The four main types include perfect competition, monopolistic competition, monopoly, and oligopoly.
- Why a sole proprietorship could be in a monopolistic competitive industry?
- Exactly Bryan! But what is crazy is that you able to have things such as sole proprietorships in that industry. A sole proprietorship is where a company is owned and ran by one person. It is easy to be a part of this market because it is not hard to enter into it, and the start up costs are really low, which is super convenient when it all is being done by one person.
- Box and Buds
- A monopolistic competition market is where many companies are present in an industry, and they produce similar but different products. None of the companies enjoy a monopoly, and each operates independently without regard to the actions of other companies. The market structure is a form of imperfect competition.
- Why a sole proprietorship could be in a perfectly competitive industry?
- Box and Buds
- Wow, we just got sent in a great question! If you can have a sole proprietorship in a monopolistic competitive industry, can you have it in a perfectly competitive one as well? Great question from Richard from Texas! Also, are you crying Lisa?
- How a corporation could be a monopoly?
- Box and Buds
- You know what Bryan, while we are on this topic, can a corporation be a monopoly? We have a few extra minutes in this segment and I thought you may be able to elaborate on that!
- How could a partnership be a oligopoly?
- Box and Buds
- For our last segment, we are going to talk about partnerships and oligopolies! A partnership is where a business has more than one owner. An oligopoly is where a market or industry is dominated by a small group of large sellers.
- No silly, I was just putting some eyedrops in! Anyways, yes you are able to do that! A perfectly competitive industry is where both producers and consumers are price-takers. This implies production and consumption decisions that individual producers and consumers face do not affect the market price of the good or service, but is affected by supply and demand. You are able to have a sole proprietorship in this with them battling over prices of the same product, just different quality, so they must listen to the people buying.
- Before I answer that, let me define those two! A corporation is a legal entity that is separate and distinct from its owners. Under law, corporations possess many of the same rights and responsibilities as individuals. A monopoly is where a specific person or enterprise is the only supplier of a particular commodity. So in saying this, this could happen as long as a corporation has complete control over a certain thing that the consumers buy.
- What you could do Bryan, is actually have a partnership in that oligopoly as well! This just happens when one of the few businesses that makes up an oligopoly is actually owned by multiple people, it's that simple! A good example of an oligopoly would be TV networks, you have big ones that dominate, such as DirecTV and Dish. Anyways, that's it for us over here at Box and Buds, we will see y'all same time tomorrow, me and Bryan signing off, have a great night!
Over 30 Million Storyboards Created