UP:SS10.E.7

Vocabulary

  • sole proprietorship
  • partnership
  • corporation
  • stock
  • bond
  • pure competition (perfect competition)
  • monopoly
  • patents
  • copyrights
  • trademarks
  • monopolistic competition
  • oligopoly
  • collusion
  • vertical merger
  • horizontal merger
  • law of diminishing returns
  • economies of scale
  • diseconomies of scale
  • short run
  • long run

Knowledge

Students know:
  • The advantages and disadvantages of the three major forms of business organization.
  • The characteristics of each type of competition.
  • How oligopolies are formed.
  • The different types of monopoly.
  • The meaning of the profit motive and how it impacts production decisions.
  • How businesses invest using equity financing, borrowing and saving.
  • The advantages and disadvantages of each method of raising money for investment.
  • How businesses compete through pricing and marketing.
  • The different types of economic institutions and their goals.

Skills

Students are able to:
  • Identify the characteristics of the basic forms of business organization and determine the appropriate form of organization for different situations.
  • Identify and construct a perfectly competitive market graph (supply and demand graph).
  • Calculate examples of diminishing returns.
  • Draw short run and long run ATC curves.

Understanding

Students understand that:
  • Different forms of business organization may be appropriate depending on the type of good or service to be produced.
  • Different methods of raising money for investment are appropriate depending on the goals of the business.
  • There are many ways in which businesses compete depend on the type of industry structure.
  • The actions of economic institutions impact market outcomes.
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