1. a) Three types of firms are:
• Oligopoly- small groups/firms/businesses that manage a particular market. In this type of firm, usually 2 firms or more controls the market e.g. Banks and WASA. Characteristics of oligopoly are 1) run by smaller firms that is usually small but not smaller than the market. 2) Not easy to enter in that there are certain things to be done before you can enter 3) These firms have a tendency to sell the same or different products/services 4) Use a lot of tactics to maximise sales 5) Benefit from profits since they produce/supply a certain good on the market
• Duopoly- is basically 2 companies/businesses that have almost full ownership of a market for a particular good/service. E.g. pepsi …show more content…
E.g. cinemas may charge adults $10 but children under the age of 10 $5 or taxi drivers may charge $5 from San Fernando to Gulf City but due to a popular event on the weekends at Gulf City, the fare goes from $5 to $20.
2. a) Taxes can be defined as a fee, sum of money or even a contribution, that the government decides based on a worker’s income and/or profits in a business. This is usually dedicated to state revenue. It can also be added to goods and services. Subsidies can be defined as financial assistance from the government towards a group of people, organisation or company in an attempt to avoid first degree price discrimination, that is, to keep the price of a commodity at a reasonable yet competitive level. Price ceiling is the highest price that the government decides that a commodity should be available for. This will therefore make commodities for the people easier to obtain. E.g. If Massy stores are selling toilet paper for $50 a roll, the government will intervene and discuss what could be done to reduce the price so the people can afford …show more content…
This is the lowest price that the government will allow a commodity will be able to be sold for. The price floor usually does not decrease below minimum wage. b) The first economic question that should be considered is who? Who is the good or service being provided for? Who is in need or want for a good or service? Which goods/services will be for the public and for the private use? E.g. there is traffic congestion on the highway to go to Port of Spain every morning. Civilians that do not possess a vehicle and needs transportation are in a predicament. The people who needed to get to work early were in need of a service. The second question that should be asked is what? What good/service should be provided and in what form e.g. land, financial, labour etc. The example with civilians needing a good/service to assist them in getting to their destination on time, what can be done to help them? The third question that should be asked is how? How is this good/service going to be produced? Do we give them money? Do we give them a vehicle? Do we give them a service? E.g. provide a service for the civilians, that is, a water taxi service, for a specific
• Oligopoly- small groups/firms/businesses that manage a particular market. In this type of firm, usually 2 firms or more controls the market e.g. Banks and WASA. Characteristics of oligopoly are 1) run by smaller firms that is usually small but not smaller than the market. 2) Not easy to enter in that there are certain things to be done before you can enter 3) These firms have a tendency to sell the same or different products/services 4) Use a lot of tactics to maximise sales 5) Benefit from profits since they produce/supply a certain good on the market
• Duopoly- is basically 2 companies/businesses that have almost full ownership of a market for a particular good/service. E.g. pepsi …show more content…
E.g. cinemas may charge adults $10 but children under the age of 10 $5 or taxi drivers may charge $5 from San Fernando to Gulf City but due to a popular event on the weekends at Gulf City, the fare goes from $5 to $20.
2. a) Taxes can be defined as a fee, sum of money or even a contribution, that the government decides based on a worker’s income and/or profits in a business. This is usually dedicated to state revenue. It can also be added to goods and services. Subsidies can be defined as financial assistance from the government towards a group of people, organisation or company in an attempt to avoid first degree price discrimination, that is, to keep the price of a commodity at a reasonable yet competitive level. Price ceiling is the highest price that the government decides that a commodity should be available for. This will therefore make commodities for the people easier to obtain. E.g. If Massy stores are selling toilet paper for $50 a roll, the government will intervene and discuss what could be done to reduce the price so the people can afford …show more content…
This is the lowest price that the government will allow a commodity will be able to be sold for. The price floor usually does not decrease below minimum wage. b) The first economic question that should be considered is who? Who is the good or service being provided for? Who is in need or want for a good or service? Which goods/services will be for the public and for the private use? E.g. there is traffic congestion on the highway to go to Port of Spain every morning. Civilians that do not possess a vehicle and needs transportation are in a predicament. The people who needed to get to work early were in need of a service. The second question that should be asked is what? What good/service should be provided and in what form e.g. land, financial, labour etc. The example with civilians needing a good/service to assist them in getting to their destination on time, what can be done to help them? The third question that should be asked is how? How is this good/service going to be produced? Do we give them money? Do we give them a vehicle? Do we give them a service? E.g. provide a service for the civilians, that is, a water taxi service, for a specific