Got my test results back from the second test. 98. Way better than I thought I’d get. Hooray for multiple choice testing.
Today, we’re starting on material for Test 3. Including:
- Market Structure
- Perfect Competition
- Monopoly
- Price Discrimination
- Oligopoly
- Monopolistic Competition
Markets are places where things are bought or sold. Markets are classified into four types:
- Commodity Markets
- Location Markets
- Time Markets
- Competition markets
Commodity markets are dependent on a specific good or commodity. The sugar market, the steel market, the wheat market, and so forth.
Location markets are markets specific to some particular geographic or pseudo-geographic market. Commonly referenced location markets are the local market, the domestic market, and the international market. The local market encompasses goods that don’t require serious transportation between production and sale. Individual cities are local markets. Domestic markets are markets which are internal to a single country or political body. Goods which do not require import or export. International markets are markets where goods are imported and exported.
Time markets are markets specific to some particular span of time. Markets classified by time are frequently divided into very short period markets (also called the market period), short-period markets, long-period markets, and sometimes very-long period markets. Very short period markets, or market period markets, take place in a span of time insufficient to produce any more of the commodity in question. The only goods which can be sold are those in hand. Short period markets exist in the span of time where supply can be increased through using fixed resources more efficiently but not by expanding the fixed resources. You can run extra shifts at the factory, but you cannot build a new factory in the short period. Long period markets take place in the span of time where all resources can be adjusted, and therefore supply can be increased as needed. Very long period markets exist in the span of time where research and development take place, and therefore new goods and services can be created.
Markets classified on the basis of competition are described by the relationship between their suppliers. There are perfectly competitive markets and imperfectly competitive markets.