Applied Economics Lesson 7, Slides of Economics

Download Applied Economics Lesson 7 and more Slides Economics in PDF only on Docsity! LESSON 7: ECONOMIC ISSUES FACING THE FILIPINO ENTRPRENEUR PREPARED BY: MELVIN O. ALEJANDRINO TYPES OF MARKET STRUCTURE PERFECT COMPETITION MONOPOLY MONOPSONY OLIGOPOLY MONOPOLISTIC COMPETITION MONOPSONY Imperfect Competition Several suppliers, one buyer in the market OLIGOPOLY Characterized by few sellers selling the same product. Can also control prices since they are few. Since they are few, other seller’s move may affect all the seller. Sometimes, sellers team up secretly to eliminate a competitor. MONOPOLISTIC COMPETITION Goods sold are technically homogeneous or same. BUT, goods sold differ from advertising. Goods sold differ from specific features. High Interest Rate Entrepreneurs usually need an addition for their capital to start or continue their business so it’s always an option for them to do banking loans. By means of this, banks usually offer high interest rate for business loans so the profit of business might go allocated for paying the interest of the loan. Rentals The better the location of a place, the higher rental it will cost. This can be a problem for business starters as the payment for rental will add up to their expenses. Minimum Wage P512.00 – Manila, P475.00 for establishments with 15 workers or less. P400.00 for Provincial Rate