CH 2 Review: Entrepreneurs in a Market Economy

perfect

a market with _______ competition consists of a very large number of businesses producing nearly identical products and has many buyers

All products you use begin with one or more ___________, but the supply of many natural resources is limited.

natural resources

Oligopoly

When a market is dominated by small number of businesses that gain the majority of total sales revenue

services

activities that are consumed as they are produced

opportunity

an entrepreneur who choose one alternative over another is using the concept of ______- cost

Capitalism

another name for the economic system in United States

command

communism is an example of an ______ economy

Above the _______, fewer people are interested in buying goods and services because they are priced too high.

equilibrium price

marginal benefit

measures the advantages of producing one additional unit of a good or service

A company that has a ________ can charge whatever price it wants for its product or service because consumers have nowhere else to go to find a better price.

monopoly

Specialization

occurs when individual workers focus on single tasks, enabling each worker to become more efficient and productive

production

the ________ function of business creates or obtains products or services for sale

Human

the people who create goods and services are called _______ resources

A business with mostly _____________ is a lower risk than a business with many fixed costs.

variable costs