BUSINNES U CAUSE WE BUSY

Capitalism: An economic system where companies are privately-owned, versus being owned by the government, and that assumes companies are built with a purpose of creating economic value through innovation, driven by a profit-motive, and where prices are set by the market via the ebb and flow of supply and demand.

Competition: The rivalry between companies selling similar products and services.

Direct Competition:  When companies offer essentially the same product or service, i.e. Coke and Pepsi, Ford and GM.

Indirect Competition:  When products or services are not the same, but they could satisfy the same need, i.e. bicycles are indirect competition to automobiles.

Monopolistic Competition: A market where there are many suppliers, and barriers to entry are low, but suppliers try to differentiate their products and gain some price advantage.

Monopoly:  A market where one company controls the supply of a good or service, where other options for consumers aren't readily available, and where the barriers to entry for other companies are highly restrictive.

Non-price Competition: Competing to attract customers based on features and attributes other than pricing.

Oligopoly:  A market where a small number of companies control the supply of a good or service, and where the barriers to entry for other companies are highly restrictive.

Price Competition: Uses pricing to attract customers.

Primary Data:  Information that you collect directly from first-hand experience.

Pure Competition:  A market where a large number of companies provide essentially the same product and sell it at a similar price or the same price, and barriers to entry for new entrants are low.

Regulated Monopolies: Allowed under strict supervision, when the government believes a large entity, like a utility company, can provide services more efficiently and more cost effectively than multiple smaller ones.

Secondary Data:  Information that has already been collected from other sources.