An economic system where private ownership, profit moti ve, and market competition play central roles, facilitating individual and corporate economic gain.
Dumping refers to the practice of selling goods at a price lower than their cost or lower than the price charged in the domestic market. This is done to eliminate surplus, undermine foreign competition, or dispose of goods unacceptable for the domestic market.
A market structure characterized by a few firms producing products that are virtually indistinguishable from one another. Examples include the petroleum industry and network television.
Interindustry competition refers to the competition that develops between companies operating in different industries. For example, an automobile company may compete with an aerospace company for a government manufacturing contract for a military subsystem.
Normal profit is the minimum level of income needed for a business to remain competitive in an industry over the long term. It represents the point at which total revenue equals total cost, including explicit and implicit costs.
A price war occurs when competing companies reduce their prices in a bid to attract customers, often leading to reduced profits and potentially driving some businesses out of the market.
A pure-market economy is an economic system in which the forces of supply and demand determine the production, distribution, and consumption of goods and services, with little to no government intervention.
