Mini Unit - Econ - Microeconomics

Partnership

Owners: 2 or more

Decision Making: Owners

Taxation: Single

Liability: Unlimited

Lifespan: Limited

Other: Easy to start, benefits from specialization, but potential conflict between owners

Sole Proprietorship

Owners: One

Decision Making: Owner

Taxation: Single

Liability: Unlimited

Lifespan: Limited

Other: Easy to start, keeps all profits, but limited access to funds

Corporation

Owners: Determined by who owns shares of the corporations stock

Decision Making: Board of directors elected by shareholders; Professional managers and employees

Taxation: Double

Liability: Limited

Lifespan: Unlimited

Other: Access to large amount of funds, but legal issues and government oversight

Monopoly

Number of Firms: One

Advertising: None

Types of products: Unique, no substitute

Control over Prices: Complete

Barriers: Almost impossible

Ex: GA Power

Oligopoly

Number of Firms: 3 or more

Advertising: Much

Types of products: Some difference in products

Control over Prices: Some

Barriers: Difficult

Ex: Soda and car companies

Monopolistic Competition

Number of Firms: Many

Advertising: Much

Types of products: Similar but slightly different

Control over Prices: Little

Barriers: Fairly easy

Ex: Gas stations, blue jean producers, grocery stores

Pure (Perfect) Competition

Number of Firms: Many

Advertising: None

Types of products: Identical

Control over Prices: None

Barriers: None

Ex: Watermelon and tomato farmers

Natural Monopoly

A monopoly that occurs because it is too expensive to create more of the one thing

Geographical Monopoly

A monopoly that occurs due to the location and what is avaliable

Technological Monopoly

A temporary monopoly that occurs with the creation of something and the patent that follows it for the thing that was created